In our industry, investment professionals are naturally hired for their expertise in finance and economics, and yet people management skills matter greatly when tackling the complex behavioural issues that underlie our industry's DEI challenges.
To begin to address these challenges, organisations need a tested and proven framework that can support and guide leaders towards the required change.
Inaugural IA EDI report finds smaller firms are setting fewer targets
The CFA Institute Diversity, Equity, and Inclusion Code, which launched on 11 October, aims to provide that framework.
The current landscape
The achingly long-term issues of underrepresentation within the investment industry reflect a failure to access the full spectrum of talent into investment organisations.
Crucially, it also hinders the industry's ability to understand and serve society effectively.
Obstacles faced by under-represented groups too often result in reduced opportunities or a withered desire to reach senior positions.
With resulting high attrition rates, imbalance persists across the diverse identities that we consider through a DEI lens in the UK today.
LGBT Great unveils charity gala to fund increased representation in media
Despite efforts over the years, the representation of women in investment roles remains stagnant at around 20%.
Wide disparities are also evident when considering race and ethnicity, particularly at senior levels.
The DEI Code for the UK investment industry will assist firms to harness the power of inclusion and equity in their business with the view to not only recruiting diverse talent, but also to finding ways to retain, include, and empower diverse talent to succeed. Inclusion is at its cornerstone.
Benefits and barriers
Organisations committed to DEI are more open to challenging their existing processes and recognising areas of improvement, leading to better overall outcomes. However, barriers do persist in encouraging investment management firms to engage with DEI at a corporate level.
Senior leaders, concerned for their organisation's continued success, often question whether implementing strategic DEI initiatives will disrupt established business models.
The DEI Code is designed to support leadership and help mitigate those concerns through a methodical framework based on six core principles.
BlackRock study finds companies with more women in workforce outperform rivals
Already supporting more than 160 investment organisations in the United States and Canada, the DEI Code enables accelerated change in firms of any size - enabling both small and large firms to drive the meaningful behaviour change needed to create an inclusive investment industry where all talent can grow.
It incorporates a dynamic and adaptable framework, recognising that one size does not fit all, and comes with accompanying implementation guidance with ideas for strategic DEI actions drawn from the experience of over 40 firms who have been pioneers in their approach.
Over the next five years, the CFA Institute DEI Code aims to manifest a far greater recognition of the value of diversity, equity and inclusion in organisations.
Hybrid working 'life-changing' for City's women but fund sector still lags on gender parity
Ultimately, it aims to help deliver an increased representation of underrepresented groups working in investment-decision making roles.
This process begins with trust-building within organisations, encouraging employees to disclose their identities, and fostering more inclusive workplace cultures.
The UK adaption of the code is purposefully modelled for the DEI challenges and opportunities specific to this market.
Change is constant
Launching our DEI Code for the investment profession is a testament to the industry's commitment to embracing change and realising its full potential.
CFA Institute has been developing and administering codes and standards for over two decades - enabled by a local society network that gives us a grassroots approach to developing codes that work across markets. Investment leaders and DEI practitioners in the UK investment industry have been central to its launch here.
As the investment industry moves forward on this journey of change and transformation, active participation and collaboration from all stakeholders will be instrumental in shaping a more inclusive future for an industry whose presence and purpose necessarily matters to society at large.
Conversations with UK investment firms wishing to explore structured pathways towards enhanced diversity, equity and inclusion are underway, and adaptions of the DEI Code for other markets are on the horizon.
Sarah Maynard is global senior head of diversity, equity and inclusion at the CFA Institute