Working toward gender parity in asset management is an important goal for the wealth management industry. A number of companies, including Bloomberg, have recently launched networks aimed at elevating women in the sector.

IQ-EQ, the investor services group, has launched a new initiative to support female fund managers to launch and grow their first funds.

The Launchpad initiative, which is designed to help women overcome the specific challenges they face launching their first funds, was prompted by recognizing that there are limited opportunities for women in the industry.

Wealth management has been a male-dominated sector for decades. The overwhelming majority of portfolio managers and financial advisors are men, with female representation at just 15 per cent across channels (source: McKinsey). In the US, the figure is 11 per cent. The Capco Institute notes the “huge concern” that women are still far from being afforded equal opportunities in leadership within financial services, and specifically with wealth management.

IQ-EQ is seeking to overturn this trend by expanding inclusivity for the wider asset management industry and fostering a self-sustaining network of women in senior leadership roles.

Funds with over 50 per cent women ownership or a woman founder will be eligible to receive preferential service terms, tailored fund administration solutions, capacity building and access to a global network.

As part of the new initiative, IQ-EQ is also committing further resources toward incorporating gender-smart practices into all service delivery. This will be achieved through the collection of data and metrics for the gender-equitable management of performance, and to incentivize behavioral change within the firm and its clients.

The initiative has already onboarded its first client, Atlantica Ventures founded by Aniko Szigetvari, an African impact-focused venture capital fund which provides early-stage funding and support to startups in Africa, IQ-EQ said.

“Only 15 per cent of all private equity or venture capital firms are gender-balanced, let alone women-led. Yet research conducted by the IFC shows that gender-diverse fund management teams deliver an incremental 10 to 20 per cent in net IRR returns compared with their non-gender diverse counterparts,” Serge Krancenblum, group executive chairman at IQ-EQ, said. 

“As a leading member of the fund ecosystem we believe that we can play an important role in addressing the gender imbalance within the asset management industry. We have leveraged our business model and contacts to put together a comprehensive support package that will help first-time women fund managers to succeed.”
 
“This is an exciting and vital step that we are taking. Gender diversity in fund management will achieve not just better outcomes for women, but also for investors and the industry at large,” Emma Crabtree, group chief commercial officer at IQ-EQ, said.

A number of organizations have taken steps to develop gender-neutral advice. Just this week Bloomberg launched its first US chapter of its Bloomberg Women’s Buy-Side Network, a group focused on elevating women in the asset management industry. With chapters in Brazil, Hong Kong, India, Japan, Australia, New Zealand, and Singapore, the mission of the network is to be inspired by the future of investing and to inspire the next generation of women buy-side leaders.

“The success of wealth management in the years ahead depends on making sure we all look like the clients and communities we serve,” Shelley O’Connor, co-head of wealth management at Morgan Stanley, said in 2019.