While the #MeToo movement has seized media attention in recent months, the investment management industry has yet to catch up, a report says.

A study of the fund management industry said their investor clients don’t ask about any sexual harassment claims before committing money to them, suggesting the sector has a way to go before “#MeToo” risks change behavior.

The Investment Management Due Diligence Association reportedly found that almost 90 per cent of respondents do not specifically inquire about sexual harassment when interviewing prospective managers to oversee assets (source: Bloomberg, May 9).

The report said the survey also found that 76 per cent of investors said they’d still consider investing with a fund manager even if they discovered issues with sexual harassment. Some 55 per cent said they would want more information before making a decision. The IMDDA surveyed 78 institutional investors -- including endowments, pensions, insurance companies, private banks and fund of funds -- in February. Family Wealth Report has contacted the association seeking confirmation of the results, and may update in due course.

“Seeing that people would actually invest in someone that they found a problem with, that was really shocking,” IMDDA executive director Andrew Borowiec was quoted by Bloomberg as saying. 

“Not only is harassment ethically and morally an issue, but from a pure business and reputational standpoint it can cause you a lot of difficulty as an investor, particularly if you’re a public pension,” he said. 

A majority of respondents said they ask managers about settlements and non-disclosure agreements and a similar number say they query managers about culture broadly.

The #MeToo movement has been galvanized by claims of sexual misconduct and attacks on women in Hollywood, entertainment and the political world, such as the case of movie producer Harvey Weinstein. Earlier this week, Eric T Schneiderman, the New York State attorney general, resigned on shortly after The New Yorker reported that four women had accused him of physically assaulting them.