New
research
shows
that
a
lack
of
ethnic
diversity
is
hampering
UK
fund
managers
in
the
pursuit
of
new
business.
As
conversations
about
diversity
and
inclusion
in
the
workforce
have
become
more
prominent,
the
UK
financial
services
industry
has
grappled
with
the
hiring
and
retention
of
under-represented
communities.
But
according
to
a
survey
of
402
investment
professionals
across
Europe
by
the
diversity
working
group,
Reboot,
more
than
one
in
five
(21%)
UK
fund
managers
say
that
a
lack
of
ethnic
diversity
in
their
workforce
has
stifled
their
ability
to
win
over
new
clients.
The
survey
also
found
that
38.3%
of
institutional
investors
would
decline
to
work
with
a
fund
manager
due
to
its
lack
of
diversity.
More
than
two
thirds
of
respondents
(67.7%)
said
that
employing
more
people
from
ethnic
minority
backgrounds
when
selecting
funds
or
awarding
mandates
will
become
more
important
for
investment
firms
over
the
next
five
years.
Diversity
Needs
to
Focus
on
Company
Culture
Justin
Onuekwusi,
chief
investment
officer
at
St
James’s
Place
and
co-founder
of
#TalkAboutBlack
said
more
needs
to
be
done
despite
the
positive
data.
“The
conversation
and
subsequently
resources
are
overly
focussed
on
the
recruitment
rather
than
creating
the
right
cultures
to
retain
and
progress
talent
regardless
of
background.”
“Our
data
also
shows
that
nearly
one
third
(32.4%)
of
UK-based
fund
managers
say
that
investors
are
not
putting
any
pressure
on
them
to
be
transparent
and
share
the
breakdown
of
their
employees
by
ethnicity.
This
is
where
additional
support
from
regulators
and
government
will
make
a
significant
difference.”
However,
previous
research
by
the
group
shows
the
asset
management
industry
continues
to
lag
behind
on
diversity.
In
Reboot’s
Race
to
Equality:
UK
Financial
Services
report
released
last
year,
it
found
that
progress
on diversity
and
inclusion
within
financial
services
was
going
backwards.
The
average
score
for
Reboot’s
Race
to
Equality
Index
had
fallen
year
on
year,
from
67
in
2022
to
65,
out
of
a
maximum
possible
score
of
100.
The
asset
management
sector
showed
the
largest
decline
over
a
three-year
period,
although
the
overall
underperformance
was
driven
by
a
lack
of
commitment
to
tackling
racism
from
senior
leaders,
the
report
found.
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