The Association of Investment Companies asked female investment trust managers why fund management is a good career and why more women should consider it.
What would you say to women considering a career as a fund manager?
Abby Glennie, co-manager of abrdn UK Smaller Companies Growth, advised women not to buy into stereotypes that portray the industry as male-dominated. Instead, she advised proactively connecting with females who work in investment roles and seeking their insights based on their own experiences.
Others agreed that connecting with industry professionals can make a difference.
Rebecca Maclean, co-manager of Dunedin Income Growth, said: “Don’t hesitate to ask questions and actively seek out hands-on experience. By doing so, you’ll gain insights into various roles and discover what truly inspires you. Who knows, you might uncover a genuine passion for the industry.”
Helen Steers, co-lead manager of Pantheon International, said: “Private equity fund management in particular is demanding and challenging, but also immensely rewarding on a professional and personal level. Women considering a career in private equity should pursue the right subjects academically, invest in their own professional development and also seek out sponsors and mentors to help them progress.”
Kate Fox, co-manager of Keystone Positive Change, advised women to embrace the industry. “Have the confidence to be authentic: your perspective on the world, your approach to analysis and your risk appetite will be of great value. It’s about being you, not trying to conform to a financial stereotype.”
Why is fund management a good career for women?
According to the AIC, being a fund manager brings “new challenges and exciting opportunities” on a daily basis.
Maclean said: “There’s never a dull moment, and I consider it a privilege to collaborate with talented colleagues, engage with executives from outstanding listed companies, and have insightful discussions with our valued shareholders.”
Georgina Brittain, portfolio manager of JPMorgan UK Small Cap Growth & Income, echoed the sentiment.
“I always try to get across the buzz and the excitement of this career. The purpose of this job is to help people have a happy retirement, buy their kids a car, help them with their first house and support many other milestones in life,” said Brittain. “And while it’s a serious job, because you’re ultimately being entrusted with people’s savings, I also get to meet CEOs and the top decision makers of companies in the process.”
Fox added: “The work is fascinating and full of variety. There are endless opportunities to learn about the world, emerging industries, evolving technologies and to meet inspiring people. Furthermore, through channelling capital towards innovative companies, you can help support societal progress. That’s incredibly exciting. For me, the best parts are the variety and ability to drive progress; this is why I am still so passionate about it, two decades in.”
Others pointed out that successful fund management requires a huge range of skills that many women have in abundance, including an aptitude for quantitative analysis, being able to assess investment strategies and being a good listener.
Steers commented: “Being a good listener, observer and communicator, able to consider all the evidence to form an investment opinion, and then translating this into a winning portfolio strategy is hugely challenging but also deeply rewarding. I think women enjoy this multi-faceted and demanding profession and excel at the collegial and collaborative aspect of the job.”
Why aren’t there more female fund managers?
Despite female fund managers being passionate about their chosen career, the balance between male and females within the industry remains uneven.
Fund managers pointed out that traditionally, there have not been enough women entering the fund management business, often as a result of a lack of understanding of what the role entails, while the industry has not been good at retaining and promoting women.
Steers said: “Speaking particularly about private equity, the pipeline of female candidates is now better than ever, but in the past recruitment has focused too much on people coming from investment banking or accountancy, and the wider talent pool of capable women has not been sufficiently tapped. That is changing, and at the more junior levels, many private equity firms now have almost equal intakes of men and women.
“However, at the mid-level there are far fewer women, less than a quarter of investment roles, and the percentage of senior investment roles held by women is still only around 12% in the UK. This is an improvement from five years ago, when only 6% of senior investment roles were held by women.”
Jean Roche, lead fund manager of Schroder UK Mid Cap Fund, said: “Only around 12% of fund managers across the industry are female and this stat is moving at a glacial pace. This stubbornly low figure is presumably off-putting for potential new female entrants. But this is true of many perceived high-status careers. This feels like a very risky position for financial markets to be in, a bit like a fund manager having 88% of their exposure in one sort of stock or theme.”
How many investment trusts are run by women?
Just over one in 10 (12%) investment trust managers are female, according to research from the Association of Investment Companies, an unchanged figure since 2022.
However, 41% of investment trust directorships are held by women, up from 36% in March 2022.
Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: “The investment trust industry has made great progress when it comes to the gender diversity of investment trust directors. The industry is continuing to address ethnic and other forms of diversity on boards.
“However, this highlights just how much more work needs to be done to increase the number of female fund managers. We need to break down the barriers that stop women progressing, whether that’s welcoming flexible working and parental career breaks for both genders, or doing more to tackle unconscious bias. The Diversity Project’s Future Female Fund Managers Programme, which is aiming for 20% female fund managers by 2026, is an important step in the right direction.”
