Back to front, #SheBelongs

In an industry known for its pioneering spirit and creativity, are we doing enough to show that from the back office to the front office, #SheBelongs in the alternatives industry?

By Elliott Shadforth, EY Asia-Pacific Wealth & Asset Management Leader

 In the EY Global Alternative Fund and Investor Survey, 96% of global investors surveyed want to allocate more to firms that are led by women and ethnically diverse individuals.

Perhaps this has something to do with a cluster of women-led hedge funds outperforming (as per HFR’s Women Access Index) those run by men during the COVID-19 crisis…

Or because it’s been well documented that an empowered diverse workforce is the foundation for long-term value for clients, people and society.

Or is it simply that, despite all the dynamic change that has happened in the hedge fund industry, the one thing that has not changed is the representation of women?

It will be interesting to see if investors take matters into their own hands and drive allocations to diverse firms.

While the industry has made progress in the back office, in an industry known for its pioneering spirit and creativity, surely we can work out how to build a future where women belong in the alternatives industry - in all aspects.

At a very basic level, until the industry has a more balanced gender split, having committed targets throughout all levels of management and across the business is crucial to ensuring a healthy pipeline of female talent, and along with this, pay parity.

But how do we get her to join in the first place?

While it would be unusual for fund managers to share their trade secrets, attracting female talent is one strategy we need to collaborate on, as a single alternative fund won’t make a meaningful difference. If we don’t collaborate, we won’t be getting the best results for investors, and risk the value and reputation of the industry as a whole.

Some practical suggestions we could learn and implement, from other industries:

• Profile successful funds that have a healthy mix of gender – this demonstrates to investors that these funds are successful and encourages further investments, and also celebrates the teams (and women) that manage these funds
• Think carefully about who you get to represent the firm at meetings and events – invite women to represent and speak, and support them in these new endeavours
• Create opportunities for secondary and tertiary education students to learn about the industry – this could include internship programs and attending careers events, or as easy as chatting to your kids and their friends about what you do at work every day

And once she’s in, empower and enable her to achieve her best!

Where I’ve seen the greatest success and biggest impact of women is when they have the support of the principal, tone from the top is critical.  Support could look like Catalyst’s four attributes of altruistic leadership from their Inclusive Leadership* research:

• Empowerment – enable women to develop and excel, for example, through direct and active mentoring learning and development, clear policies around diversity and inclusion and a commitment to flexible working arrangements for all employees both male and female
• Humility – as principal, invite feedback and other points of view, and be transparent about your own mistakes
• Courage – put aside self-interest and be values-driven as you shift the firm’s culture
• Accountability – give women specific, constructive feedback and hold them responsible for performance they control

Women in the front office are one of the keys to unlocking alpha in the industry. We all stand to gain. So what concrete steps will you take this year, to show that from the back office to the front office, #SheBelongs?

As always, reach out if you’d like to talk more about your ideas and what’s worked for you.

For more ways on how alternative managers (large and small) can improve diversity, read AIMA’s The Alternatives paper, produced with support from EY.

#SheBelongs   #WomenFastForward

* Jeanine Prime and Elizabeth R. Salib, Inclusive Leadership: The View From Six Countries (Catalyst, 2014).

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.