The IA has unveiled its first Equity, Diversity and Inclusion Data survey, providing an industry-wide data report on EDI statistics in the UK investment management industry.
The study compiled the results from a questionnaire that covered data on characteristics such as age, caring responsibilities, disability, ethnicity, gender, neurodiversity, religion, sexual orientation and socio-economic background, to help firms better understand their workforce.
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In total, 52 UK fund management firms took part, which collectively represents 78% of the approximately 46,200 people directly employed by the investment management industry in the UK, and covered 75% of total UK assets under management.
Karis Stander, director of the organisation's culture, talent and inclusion team, said data are the "backbone" of creating and implementing an effective EDI strategy and noted the study would allow companies to compare its EDI progress more accurately against peers.
One of the findings revealed that only a quarter of smaller firms, those with less than £15bn in AUM, had set diversity targets covering at least one metric, compared to 91% of ‘large firms', with over £50bn AUM, which had set at least one target.
According to the study, one of the main reasons for smaller firms not setting targets were "concerns about the effectiveness of targets and EDI strategies not being mature enough". However, she said this did not mean smaller firms did not want to engage with EDI issues.
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"While they are not engaging in the targets in the same way as the larger firms, they do want to. They are finding it more challenging, but we are seeing a lot of willingness," she said.
Another finding revealed that response rates were lower on data around neurodiversity and socio-economic background versus gender, ethnicity or sexual orientation, for example - 40% and 25% versus 98%, 85% and 63%, respectively.
The IA said the former areas lagged in data collection rates because there was a "lack of awareness" with respect to neurodivergence, and in the case of socio-economic background it was down to an "absence of standardised methodology".
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Several barriers to collecting the full scope of EDI-related data were flagged, including HR system limitations, which was the most common challenge cited (55%).
Other headwinds included concerns about data privacy and security (40%), which was closely followed by concerns around the ethics of collecting this type of sensitive data and how it would be used.
In the study, Stander said that although firms throughout the industry had taken a "proactive approach" to data diversity collection already "developments in the regulatory environment may also impact the way in which firms gather and report on their EDI data and strategies".
"The Financial Conduct Authority's and Prudential Regulation Authority's consultation papers on diversity and inclusion in financial services include proposals on making it mandatory for firms to share EDI strategies with the public and the regulator and calls on firms to collect and publish their workforce diversity data on an annual basis," she said.
"We hope this report will support firms in preparing for the potential regulatory changes on the horizon."