Driving transformation goes beyond the BBBEE scorecard, says Old Mutual Investment Group

It is widely acknowledged that the financial services industry has been slow to transform. One of my earliest memories after having joined the asset management industry 15 years ago is of walking into a meeting at which our host shook hands with all attendees except me — the only woman in the room. 

Since then, transformation in asset management has become an important theme, with some wins in black ownership and representation. However, the inclusion of women has largely been neglected. They are underrepresented in senior leadership and investment teams.

The Citywire Alpha Female Report 2021 states that globally, only 11.8% of portfolio managers are women and that it will take more than 120 years for the industry to achieve parity. Similarly, our research shows there’s less than 30% women representation on the boards of the top 100 JSE-listed companies.  

There is growing pressure within the industry to better represent our country’s demographics. We owe a debt of gratitude to asset owners who have taken the lead in putting pressure on the industry and holding asset management firms accountable for having diverse teams.

Some of the retirement funds we engage with have a deep sense of purpose for the greater good, expressed through their transformation policies and boldness in asking hard questions. 

This has inspired important dialogue on gender transformation, such as unconscious biases, the important role of men in gender transformation, sponsorship vs mentorship, maternity vs parental leave, the retention of female talent and closing the gender and ethnic pay gaps. 

The added complexity is that the momentum of gender equality in the workplace seldom translates to homes, where women tend to carry the bulk of domestic chores while managing challenging careers. Necessary change therefore extends beyond workplaces — it’s a societal concern that requires us all to have honest conversations with ourselves and each other about our holistic “gender transformation footprint”.

At Old Mutual Investment Group, our strategy is to drive a transformation agenda that focuses beyond the BBBEE scorecard. Our transformation committee, an exco subcommittee, is mandated with ensuring we commit to making a meaningful difference within the investment industry. We believe diversity strengthens organisations as it brings in different experiences and perspectives that lead to more creative and innovative thinking.

We recruit to increase black and women investment team members, consciously ensuring we achieve diversity and that decision-makers reflect our commitment to transformation. Growing the pool of black and women decision-makers in our investment teams is possible through the strategic guidance of a diverse and representative leadership team at the helm of our business. 

A potential blind spot in leadership is that people tend to treat you differently, which makes one susceptible to losing touch with the real experiences of employees. It is essential for leaders in asset management to possess the humility of understanding for genuine inclusion to happen — they need to be open to learning and listening.

Tackling diversity and inclusion should not be limited to our organisations — there’s opportunity for us to influence other spaces for broader impact. Asset managers have a critical role to play in driving gender parity change in the companies in which they invest.

Old Mutual Investment Group’s responsible investment approach includes actively engaging investee companies on gender diversity as a social imperative and to realise its proven impact on performance as we seek to grow our clients’ capital.

Looking at transformation beyond our organisations pays it forward and as an asset manager of scale, doubling our allocation to black-owned stockbroking firms over the past five years is transforming the value chain positively. I believe it is our holistic and multifaceted approach to transformation that has resulted in the progress we have made in improving our diversity and overall transformation. 

My experience of being “invisible” in a meeting 15 years ago made me realise that before someone can decide how they are going to treat you, they must first see you. Not being seen is more unpleasant than being discriminated against and the asset management industry has a collective responsibility to see and acknowledge women, not simply track statistics.

We have a way to go in becoming a truly demographically representative industry and women are ready to be seen and work within cultures that affirm this. As this journey unfolds, I hope for and look forward to the day a woman excelling in our industry is not remarkable. 

This article was paid for by Old Mutual Investment Group.