From Morningstar: 2024-04-17 08:11:00

New research reveals that UK fund managers are struggling due to a lack of ethnic diversity, hindering their ability to attract new clients. A survey shows that 21% of fund managers believe this lack of diversity is a barrier to winning new business. Institutional investors are also turning away from firms without diverse teams, with 38.3% saying they would decline to work with such managers. The importance of diversity in the financial industry is set to increase, with 67.7% of respondents indicating that hiring individuals from ethnic minority backgrounds will be crucial in the next five years. Justin Onuekwusi, chief investment officer at St James’s Place, emphasized the need to focus on building inclusive company cultures in addition to recruitment efforts. He noted that while some progress has been made, more needs to be done to support and retain diverse talent. The asset management sector, in particular, has shown significant declines in diversity and inclusion efforts, with senior leaders lacking commitment to addressing racism. Previous research by Reboot demonstrated that the financial services sector as a whole is going backwards in terms of diversity and inclusion. The Reboot Race to Equality Index, which assesses progress in diversity, fell from 67 to 65 out of 100, reflecting a lack of advancement in creating inclusive environments within the industry.



Read more at Morningstar: Lack of Ethnic Diversity A Drawback, Say UK Fund Firms