Source: Citywire, Alpha Female Report, 2022

Diversification has proven to be one of the most enduring principles of sound investment management over the years. Yet, team construction across all spectrums of the investment profession does not exemplify this. The Alpha Female 2022 report published by Citywire showed that only 12.0% of the 17,554 portfolio managers on its global database are female (2021: 11.8%). There has only been a 1.7% growth in the percentage of female managers since 2016. In South Africa, the percentage of female portfolio managers has stayed nearly the same over the past four years, standing at 11%. Globally, as per an assessment conducted by Morningstar, female representation in asset management has remained steady at 14% for nearly two decades.

There are a variety of reasons why women may not pursue a career in asset management. One reason could be the lack of representation of women in the field, which can make it difficult for women to envision themselves in these roles and to find mentors and role models. Additionally, unconscious bias and discrimination can make it harder for women to be hired and promoted in asset management, and the lack of flexible working arrangements can make it difficult for women to balance their career with family responsibilities.

It’s also worth noting that some women may not have exposure or access to the industry early in their career, or they may not be encouraged to pursue finance or investment related education or opportunities as much as men. Furthermore, women may not have the same level of access to the networks and resources that are often critical for entering and advancing in finance and asset management.

The case for an increase of women in leadership positions in investment firms is becoming even more powerful as investors and employees alike are increasingly looking to be associated with diverse, equal, and inclusive organisations. Furthermore, studies have shown that diverse thinking at senior levels correlates to higher profitability, making it a business imperative. A recent research paper by Goldman Sachs found that funds led by all-women teams or mixed-gender teams performed better than all-male-led funds over the first three quarters of 2020, a period of poor market performance. Mixed-gender teams continue to produce good returns at lower risk (as depicted below)

Source: Citywire, Alpha Female Report, 2022

Catalyst Fund Managers recognises the need, and value, of including diverse views throughout the investment process, which naturally female talent would contribute to. By investing in efforts to develop young female graduates straight from university into the industry, we will begin to make strides in addressing the current gender disparity. We have thus partnered with industry stakeholders to launch an industry-wide initiative called Fezeka, a programme which will focus on the development of, and the retaining of black female talent within the asset management industry.

The Fezeka Investment Management Programme is committed to contributing to:

1. Investing in the education and development of women by offering education and development programs specifically targeted at women, and by offering internships and other entry-level opportunities to women to expose them to the industry.
2. Encouraging more women to study finance and investment related fields, by actively promoting these studies to women and girls.
3. Providing networking and mentorship opportunities for women, to give them access to the resources and connections that are often important for success in the industry.
4. Building a diverse and inclusive culture through creating employee resource groups for women, promoting diversity through recruitment and retention efforts, and creating a culture of respect, inclusivity, and equity
5. Increasing representation and visibility of women in leadership positions, this will assist in creating role models and mentors for women in the industry and can also help to change the perception that asset management is a male-dominated field.

Fezeka will provide black female graduates who want to build a career in asset management with the opportunity to participate in a structured development programme. The programme will consist of a powerful combination of theoretical knowledge, and practical work experience within established top performing asset management businesses committed to growing the talent pool of women in the industry. Furthermore, it is important to highlight that mentorship and coaching are key components of this initiative. By supporting women in the industry through the challenges they face, we can enhance the professional development of each of these black female graduates, making this a key component of the initiative. The programme and work experience will be offered to the graduates over a 15-month period at the participating employers in Johannesburg and Cape Town at a competitive salary, under the auspices of the ASISA Academy. The participating investment management firms will host graduates at their offices and provide workplace experience on a rotational basis to build their knowledge, experience and professional skills for a strong foundation and career in the industry.  The rotation between firms and functions is a core benefit of this programme as it will broaden the graduates’ understanding of the career opportunities which are available in the industry.

Graduates who successfully complete the programme will be certificated as Financial Market Practitioners and be ready to write their CFA level 1 exam while having gained invaluable experience and built long-term relationship networks with leading asset management businesses and potential future employers. While retention amongst the participating firms would be optimal, the ultimate objective is for each graduate to be employable in the broader investment industry at the end of the programme.