Undiversified: The Big Gender Short in Investment Management

Diversification is a core principle of investing, but women are underrepresented in portfolio management. Only 10% of portfolio managers are female, and the numbers are even worse at the ownership level. This underrepresentation has consequences for firms and clients bottom lines. In Undiversified, Ellen Carr and Katrina Dudley examine the lack of women in investment management and propose solutions to improve the imbalance. They explore the barriers that discourage women from entering and staying in the industry, such as the lack of visible role models and informal knowledge about career tracks. They showcase successful female portfolio managers to demystify the profession and argue that increasing the number of women could help transform active investment management.

\n Format: Hardback
\n Length: 280 pages
\n Publication date: 03 August 2021
\n Publisher: Columbia University Press
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Diversification is a fundamental principle of investing, yet it has been largely overlooked by money managers in their own ranks. Only around 10 percent of portfolio managers, the individuals responsible for investing client funds, are female, and the numbers are even worse at the ownership level. The causes of this underrepresentation are complex and multifaceted, but they include a lack of visible role models, gender biases, and systemic barriers.

The consequences of this underrepresentation are significant for firms and clients. Women have a unique perspective and approach to investing, which can lead to better investment decisions and improved performance. However, the lack of women in investment management means that firms are missing out on valuable insights and expertise. Additionally, women investors are often underrepresented in the financial industry, which can lead to lower returns and fewer opportunities for growth.

To address this issue, there are several steps that can be taken. One of the most important is to promote diversity and inclusion in the investment industry. This can include initiatives to increase the number of women in leadership positions, provide training and development opportunities for women, and create a culture that values diversity and encourages collaboration.

Another important step is to address gender biases in the hiring and promotion process. This can include blind hiring practices, equal pay policies, and mentorship programs that support women's career growth. Additionally, firms can work to create a more inclusive workplace culture that values diversity and encourages open communication and collaboration.

Finally, policymakers and regulators can play a role in promoting diversity and inclusion in the investment industry. This can include implementing policies that encourage diversity in the hiring and promotion process, promoting gender equality in the workplace, and regulating the financial industry to prevent discrimination and promote fair treatment.

In conclusion, the underrepresentation of women in investment management is a significant issue that has far-reaching consequences for firms and clients. By promoting diversity and inclusion in the industry, addressing gender biases, and implementing policies that support fair treatment, we can help to create a more equitable and sustainable investment landscape.

\n Weight: 532g\n
Dimension: 161 x 236 x 25 (mm)\n
ISBN-13: 9780231195881\n \n