Alpha Female: why managers gravitate towards mixed teams

The number of mixed teams, which include both female and male fund managers, has doubled in the past six years, according to Citywire’s latest findings Alpha Female Report 2021.

But nurturing diverse portfolio management teams takes a lot of thought and planning, especially when it comes to hiring practices and programs that get fund managers back into the workforce after. long absences.

Abrdn is one of the company’s leaders in gender parity in overall fund management, as nearly a quarter of its portfolio managers are women, according to Citywire data.

The asset manager also ranks tenth on the list of companies with the most funds managed by mixed teams.

“As soon as I joined Abrdn in 2011, I noticed a reasonably high level of professional women in leadership roles in our head office in Edinburgh, possibly due to shorter commute times,” said Katie Trowsdale, responsible for the firm’s multi-manager strategies. .

“It would only be a dream in London, where women typically face longer journeys, making it more difficult to balance work and family. I hope Covid-19 has changed people’s attitudes towards flexible working, resulting in more opportunities for women in finance, especially in London, ”she added.

A key element of the company’s successful progress on gender parity in portfolio management is its effective return-to-work program, which allows it to reintegrate team members into the management of the fund after long periods of time. absences.

“The world of finance is different from other professional environments because we desperately need women. There are a number of companies that offer return programs for women, but they also need male return programs to give men the confidence to take the time to empower women who want to progress consistently. to do it, ”Trowsdale said.

Another important piece of the puzzle, she says, is implementing the right recruiting strategy.

“We should find ways to encourage more professional women to apply for jobs, and companies should think more carefully about how their brand can support mixed teams,” said the fund manager.

Diversity is the key

Roberta Rudelli, head of fund selection at Cordusio and UniCredit, said returns on investment are indeed enhanced by mixed teams.

She added that such team setups are the answer for investors who want to take risks, but are also looking for long-term stability.

“Women fund managers tend to be more cautious and only take risks after having carefully considered all the pros and cons of the situation. Men, on the other hand, tend to be more tactical and sometimes make investment decisions that they will have to completely revise, ”she added.

She said we need better diversity in the workplace overall because a mix of mindsets makes for better decisions.

Rudelli said fund selection teams are also more balanced in terms of female representation these days, but gender equality will take time as you have to overcome the historical biases that have kept women from pursuing careers in the world. higher spheres.

She hopes the growing number of women in the industry will help raise the profile of these issues.

“Quantitative representation is one thing and the recognition of professional women in the world of finance is another. I hope that at some point some nasty situations like the gender pay gap will become less justifiable once women are more and more present in the industry, ”she said.

Leadership programs

According to Filippo Casagrande, Head of Insurance Investment Solutions at Generali Asset & Wealth Management (A&WM), mixed teams offer a significant advantage.

“It is important that breeders are able to leverage diversity in the workplace for organizational effectiveness and the balance of diverse approaches. Mixing different viewpoints and ways of thinking can also avoid mistakes, ”he said. Citywire selector.

“Fund selection is one of the segments where we can find more women in the financial sector, however, there is still a lot of room for improvement,” he added.

Casagrande said the biggest problem within the financial sector was the limited opportunities for women to move up the career ladder.

This is why Generali A&WM has deployed several initiatives to both increase the presence of women in the company and the number of women in management positions.

“We have dedicated leadership programs to our female talents. But also seminars on career planning, management and self-promotion. All initiatives aim to equip our female colleagues with the necessary tools to realize their potential, ”he said.

Casagrande is quite optimistic about the future, as working for gender equality has become a trend in the financial industry.

“It’s the continuation of a process that probably started in the United States and is becoming a thing in Europe; and the numbers will increase dramatically over the next decade. I also see a lot of enthusiasm in some Asian countries where women managers seem to progress more easily than elsewhere. ‘

Citywire’s full Alpha Female 2021 report, which reveals top asset management groups by percentage of female managers and contains proprietary data on mixed team performance, manager retention and turnover, along with in-depth analysis from research, can be found here. A video on the report can be found here.