Survey reveals full extent of UK investment industry’s lack of diversity

The average employee working within the UK investment management industry is a straight, white, British male, without a disability, and with a high chance of being privately educated, new research has confirmed

Although the 81 per cent of the industry that identifies as white British compares favourably with the the 89 per cent making up the majority of the UK population as a whole, representation in the industry on the basis of education and gender does not reflect British society as a whole, Mercer, which is behind the new report, said.

Its Diversity Project Benchmarking Study, found women were also underrepresented, accounting for just 23 per cent of the industry but 47 per cent of the population.

The survey also revealed that 38 per cent of investment managers are privately educated, more than five times the proportion of the general population, which is 7 per cent.

And most investment managers are educated to Master’s degree level (47 per cent), followed by those with a Bachelors degree (44 per cent).

And although the UK population is made up of 11 per cent people who are described as having disabilities, within the investment industry they account for less than half of that at 4 per cent of the sector’s workforce.

“The perception of the industry being run by the old boys’ network is very damaging as it makes investment management less of a desired career path,” Mercer partner Georgina Harley said.

“An immediate fix for the industry is to improve this image issue, and work has already begun.To attract a more diverse group of applicant’s organisations should adopt more contemporary practices around recruitment and promotion, as well as promote positive examples of diversity and tackle the issue of part time work for portfolio management roles.”

Key findings from the report: