By: Lilian Lerm
The investment management industry has historically experienced an underrepresentation of women in key roles. Despite efforts to change this, progress in balancing gender representation has been gradual. However, women are overcoming biases and carving out their paths to success in this dynamic field.
Throughout my career, I have witnessed the positive impact of diverse perspectives in investment management. This is exemplified by the performance of one of the funds my team and I manage, the SMM Moderate Absolute Fund, which has consistently ranked in the top three in the CPI + 5% category of the Alexforbes Absolute Return Manager Watch Survey (latest survey dated July 2024) over the five, seven and 10-year periods. Much of its success stems from the varied viewpoints brought to the table by team members from different backgrounds.
Advocating for supportive work environments
Through my work with the Sanlam Investments Women’s Forum (where I serve as Deputy Chair), as well as participating in the pilot programme of Sanlam Investment Group’s inaugural IgniteHer programme, I have identified three crucial factors that can contribute to success in the industry, especially for women.
Sponsorship: It is essential to have a sponsor who will speak on your behalf and obtain opportunities for you at forums you don’t have access to.
Networking: Creating and leveraging a network, inside and outside your company, is crucial for career progression.
Personal Branding: Finding your competitive edge and building your personal brand around it. Women tend to avoid promoting themselves, but it is imperative to deliberately communicate your value to the right people.
We need to advocate for a world of work that reflects people’s current needs and the progress we’ve collectively made. We know that both genders benefit from working conditions that reflect the world we live in now. If people are given the autonomy to decide when and where they work, workers feel trusted and respected and can create a working environment where they are most productive.
Creating a supportive environment
Businesses need to create awareness around biases against women and encourage women to share their stories to normalise the female perspective and foster a more inclusive industry. This can lead to positive change, such as ensuring that networking events happen during working hours when everyone can attend, instead of the traditional arrangements where employees sacrifice time with their dependants to network during the evenings and over weekends.
Recent developments in South African law are also contributing to a more supportive environment for working parents. A recent landmark high court ruling allowed new parents to share four months of parental leave, previously available only to mothers. This groundbreaking judgment allows fathers to take a portion of up to four months of parental leave, provided they reach an agreement with the mother.
This development could significantly impact women's ability to return to work sooner and share childcare responsibilities more equitably, potentially reducing career interruptions and promoting gender equality in the workplace.
The role of SA Inc. and asset managers
Despite progress, major gaps remain in senior leadership gender equality in most of our industry. The biases women face, and the lack of a modern working environment are significant barriers. Initiatives like the ASISA Fezeka Graduate programme and CFA Day of the Girl are making strides, but businesses must also play their part.
Women in boardrooms share perspectives and lived experiences from a female point of view, potentially enhancing decision-making and outcomes. As an industry, we should continue to work towards change at every level of the corporate structure.
It’s also worth noting that more women are taking charge of their financial independence and accumulating more wealth. This indicates a shifting client base for the asset management industry towards a more balanced gender perspective. Asset managers need to understand the thinking, needs, and expectations of women to attract and retain female clients.
Looking ahead
As Edwina Dunn states in her book When She’s in the Room, “There is room at the table for everyone, and we can always add more seats if necessary.” Fostering an inclusive, equitable, and supportive work environment will ensure more women occupy these seats, driving innovation and success in the investment industry.
While there’s still work to be done, I remain optimistic about the future of women in investment management. By continuing to have these important conversations and implementing meaningful changes, we can create an industry that truly reflects and benefits from diverse perspectives.
* Lerm is the deputy chief investment officer at Sanlam Investments Multi-Manager. Part of the Sanlam Investments’ Women in Investing series.
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