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#talkaboutblack
#talkaboutblack
Purpose
To develop a pipeline of black leaders in the asset management industry
The UK fund management industry
The UK is the world’s second largest savings market after the United States totalling £7.7trn. The industry employs 100,000 individuals with 75% of UK household utilising the services of an asset manager in one form or another. There has been a drive to increase diversity and inclusion in the asset management sector with four major reasons cited:
1. Greater diversity of thought leads to better decision making and better performance
2. Institutions should be representative of the customers and communities they serve
3. The changing economic, geopolitical and demographic landscape requires new perspectives to successfully navigate
4. Asset managers should contribute to society and reduce inequalities
Yet the industry remains unrepresentative of the UK population and workforce. Ethnic minorities comprise 14% of the UK the population. Of this 7.5% identify as Asian and 3.3% as Black. In London where the majority of fund managers are based, 18.5%of the population is Asian and 13.3% is black. In the fund management industry 10% of individuals identify as Asian and only 1% identify as black.
Investment Association, 2019Investment Association, 2019Census data, 2011Census data, 2011The Diversity Project Benchmarking Study
The kinks in the hosepipePrevious attempts to capture minority groups in the workplace have led to the BAME (Black Asian Minority Ethnic) acronym. Ourexperience tells us that this is not a homogenous group and the experiences of different ethnicities leads to suboptimal outcomes when attempting to redress the imbalance. Given the underrepresentation is most severe amongst black people, we have decided to focus on this demographic. We highlight four major causes for black under-representation.
1. Pipeline. The socio-economic situation in which many UK born black people find themselves. UK Black-Caribbean and black-African experience higher rates of unemployment are more likely to be victims of crime and underperform in education when compared to white counterparts and other ethnic minority groups.
2. Entry. Should these individuals achieve a good education they are less likely to be successful in securing their preferred roles. They are also either not attracted to asset management due to its perceived lack of diversity or in many cases simply not aware.
3. Career progression. When these black individuals do break into the industry they typically end up in support functions, have higher rates of attrition and rarely progress to leadership or revenue generating positions. At the time of writing we can identify thirteen black portfolio managers, three heads of distribution and only two black professionals in c-suite positions.
4. Breaking the taboo. Finally, whereas people are generally comfortable discussing issues relating to gender and more increasingly sexual orientation, race remains a taboo subject.
Unwinding the kinks
We are pursuing a range of solutions to overcome these challenges:
1. Pipeline. The creation of an after-school program aimed at secondary school children which will equip them with the knowledge, tools, connections and more importantly aspiration to enter the fund management industry. We are exploring a pilot program with the City of London Corporation initially working with one school in Hackney, Tower Hamlets or Southwark targeting children aged 11.
2. Entry. An annual student event to identify and attract promising minority talent to the industry.
3. Progression. Mentoring circles led by senior ethnic minority professionals aimed at minority professionals with 1-10 years’ experience and a 5-point CEO plan which will equip business leaders with a blueprint to increasing black talent in their organisations.
4. Breaking the taboo. #talkaboutblack which utilises thought leadership, roundtable debates, panel discussions, online videos, mainstream/trade media and social media to break the taboo subject that is race in our industry and society.
Governance and Initiatives
#Talkaboutblack Governance Structure
Additional Members to be appointed
Justin Onuekwusi
Gavin Lewis
Rachel Green
Anji Kang-Stewart
Bola Adesina
Darren Johnson
Maria KerrSecretary
Marisa Hall
Advisory Committee
Steering Committee
Work Stream
Workstream
Pipeline
Entry
Progression
Taboo
DawidKonotey-
Ahulu
Chapter Leads
The Catalyst After School Program
Proposed Schedule (2019)
January - March 1 day per week
April – June 2 days per week
July - September 3 days per week
October -
December
4 days per week
Proposed SchemeA cohort of 10-20 students to be selected
from schools in Tower Hamlets, Hackney
or Southwark
Pilot program to be instituted for one
year
Sessions to be held from 4.30pm -
5.30pm
Target pupils from age 14
Requirements and next stepsPupil selection criteria to be established
School selection criteria to be established.
Schools located in boroughs surrounding
the City may be saturated with charitable
opportunities
Curriculum to be established. This can be
based on the Investment Foundation
Certificate
Premises and sponsoring Fund Managers
to be identified
Working group to be created
Funding requirements to be assessed
Charitable partner to be identified
Desired OutcomeProgram to provide pupils with soft and
hard skills but also the aspiration, belief
and tools to develop a successful career in
the asset management industry
Pupils to be awarded the CFA Investment
Foundation Certificate.
Pilot Student Event
Proposed SchemeAn annual event (pilot) to match ethnic minority the talent to the workforce.
Partnership with City of London Corporation and 8 asset managers
Date: 4th November to coincide with reading week
Format: careers fair type format
Venue: Mansion House
Targeting: University Students (2nd and 3rd year), recent graduates
Desired OutcomeTo equip attendees with skills (CV, assessment centre etc) to enable them to succeed at upcoming assessment centres
Applications from most firms close in December. We’d like students to use the skills (and network) they have acquired to give them a head start
This is a selective programme – capacity for 90 students
Next StepsSave the date: expected to be sent end of July / Aug; Open to applicants until end of Sept. October: applicants confirmed
Applicants: A large number of applicants expected. Assessment completed by volunteers and the working group
Sponsors: 8 asset managers confirmed
Mentoring Circles
Proposed schemeCircles consist of up to 12 mentees and 4 mentorsOpen and honest conversations, mentees are urged to ask the difficult and awkward questions
Mentors receive reverse mentoring
Stems from a need to provide guidance and mentorship to ethnic minority professionals with 0 – 10 years experience
Desired OutcomeTo retain ethnic minority talent in the asset management industry
To progress careers and identify future leaders
To highlight the challenges ethnic minority professionals still face in the asset management industry
Next stepsThree mentoring circles held at Vanguard, LGIM and Wellington
Circles to be scheduled at two month intervals
Identify a wider pool of mentors
1
Engage with your workforce: To break the taboo and create an inclusive environment Conduct regular anonymous staff surveys to assess the level to which ethnic minorities feel included, act on any findings
Create an environment where minority staff are able to share their lived in experiences e.g. through speed mentoring and
industry thought leadership
Create ethnic diversity champions within your organisation to drive change
2
Align the need for greater ethnic diversity with your business goals: To produce better outcomesArticulate why ethnic diversity is important to the ongoing success of your business
Create clear and public corporate objective(s) for which all levels of leadership will be held accountable
Incentivise all levels of management to meet these objectives
3
Gather data to create clear objectives: To monitor progress and drive accountabilityEstablish the number, engagement and pay of your ethnic minority employees against the rest of your staff population
Identify the gaps in each of these areas against a set of clearly defined objectives
If gathering accurate data proves a challenge, clear objectives to increase ethnic representation can still be created
4
Re-assess your hiring and retention practices: To attract diverse candidatesExamine your hiring practices and take steps to ensure your selection criteria are fair and unbiased for example removing
names from CVs
Develop a program with a competitive selection criteria that attracts and then develops talent from entry level to c-suite
Hire a Diversity & Inclusion specialist who has a reporting line to the board/CEO
5
Communicate progress: To create momentumReward your diversity champions
Share good practice with other asset managers/industry bodies
Integrate ethnic diversity in CSR investment teams
Addressing Ethnic Diversity in Asset Management: 5-Point CEO Action Plan
Breaking the Taboo
Articles, blogs and thought leadership
So can we talk about black?
https://www.linkedin.com/pulse/so-can-we-talk-talkaboutblack-dawid-konotey-ahulu/
Dawid Konotey-Ahulu
Now that I have your attention
https://www.linkedin.com/pulse/now-i-have-your-attention-gavin-lewis/
Gavin Lewis
The Black Voices Report
https://www.theia.org/sites/default/files/2019-06/20190611-blackvoices.pdf
Speaking and panel discussions held at:
Allianz Global InvestorsAmerican European Business AssociationArtemisAssociation of British InsurersAviva InvestorsBaring Asset ManagementCambridge AssociatesCredit SuisseHeidrick and StrugglesJP Morgan Asset ManagementLGIMStandard Life AberdeenVanguard Asset ManagementWillis Towers Watson
SchrodersProfessional Adviser 360 conferenceYoung Diverse Working Group conferenceInvest in Ethnicity ConferenceRefinitivCity HiveThe University of ManchesterCity UniversityEquality GroupInvestment Week (Incisive Media)Investment 2020M&G InvestmentsDenton
Social Media
Follow us:
https://twitter.com/talkaboutblack?lang=en
https://www.instagram.com/explore/tags/talkaboutblack/?hl=en
https://www.linkedin.com/company/12609020/admin/
https://www.youtube.com/channel/UCQxZiY2DdRPuYcY0jNJdW_g/videos
