Diversity & Inclusion: Buy Side’s Competitive Advantage

Asset managers that commit to diversity and inclusion are more likely to be recommended by investment consultants and considered for mandates by institutional investors.

A new study from Coalition Greenwich finds a positive correlation between asset managers’ perceived commitment to Diversity and Inclusion (D&I) and their performance in a range of important service and business metrics—including likelihood to be recommended by consultants. In fact, asset managers with the highest scores for D&I were three times as likely as their peers to be included in consultants’ recommended short lists.

“With the 10 largest investment consultants accounting for almost $20 trillion in institutional assets under advisement, it’s clear that a commitment to D&I can deliver immediate, tangible economic benefits for asset managers,” says Susan Gould, Coalition Greenwich Relationship Manager and author of Commitment to Diversity and Inclusion: The Hidden Competitive Weapon.

Asset managers who received the highest ratings for diversity and inclusion from investment consultants also outperformed their peers in assessments of investment, service and overall quality, and several other important measures.

“In some industries, the economic payoffs of diversity and inclusion can take time to emerge,” says Susan Gould. “That’s not the case in asset management. In this industry, managers that demonstrate a true commitment to D&I have created a powerful competitive weapon.”

Source: Coalition Greenwich

Related articles

  1. Breaking data silos is key to deploying automation beyond 'nuisance' orders.

  2. Northern Trust survey shows 98% of managers incorporate data science to optimize investment performance.

  3. Investors in private markets have struggled with inefficient and manual processes.

  4. Institutional investors are expecting more services from digital asset custodians.

  5. The bank agreed to a civil penalty of $8m.