Investment industry urged to address lack of female execs

The UK investment management industry is suffering from a severe lack of female representation, despite the high corporate governance expectations placed on the boards of companies in which they invest, according to a KPMG report.

The annual Financial Reporting by Investment Managers 2014 (FRIM) report, which analyses the most recent annual reports of the UK’s largest investment managers and examines the key trends impacting the industry, revealed that on average, investment management firms had an average of 15% female board members and just 4% at executive director level.

The figures are well below the European Commission’s proposal for a directive introducing a minimum representation of women on the boards of listed companies of 40% by 2020, as well as the UK’s Davies report, proposing that FTSE 100 boards should have at least 25% female representation by 2015.

Melanie Richards, partner and vice chairman at KPMG said: “Considerable progress has been made in recent years to ensure greater diversity at a senior level. There is not one member of the FTSE 100 without female representation in the Boardroom, the proportion of companies edging closer to Lord Davies target is edging up, and changes are clear to see in many of the UK’s leading industries.

“The common denominator connecting all these organisations is the realisation that greater inclusivity opens doors to a wider pool of talent and paves the wave towards better performance as firms mirror their target market with more accuracy.

“Our report reveals that UK investment managers still have some way to go to match these levels, yet we will only really take a quantum leap towards better gender balance when organisations treat this as a mainstream, not a ‘diversity’ issue.”