Strengthening women in leadership to improve client experience

The investment management industry has gradually recognised the importance of female representation, with increasing efforts to promote diversity. While acknowledging this progress is essential, it is equally critical to understand that representation alone is not enough; it must translate into decision-making roles to have a meaningful impact on policies, strategies and practices within the industry.

Women make up 19% of portfolio manager roles in South Africa. When the scope of the analysis is widened to include support staff, who represent 79% of the total workforce, female presence in the asset management industry expands to 59%. Women are overrepresented in support staff positions and underrepresented in senior investment roles. This suggests that the industry has not fully leveraged this diversity.

What really drives performance?

Research consistently demonstrates that diverse teams drive performance improvement relative to their homogenous counterparts. When it comes to investment management, the stakes are particularly high, as clients rely on managers to provide informed decisions that align with their goals, return and risk tolerances.

A lack of female voices at the decision-making table can inadvertently result in a narrow understanding of client needs and investment opportunities. Female clients approach investing differently than men, shaped by unique experiences, risk appetites, and financial goals. They often seek financial advisers who build trust and prioritise communication, transparency, and education. With women projected to control c.$30tn in global wealth by 2030, investment management firms must reflect this demographic at their decision-making levels.

Companies must create pathways for women to progress into leadership roles. This means setting up mentorship and sponsorship initiatives that connect junior female staff to experienced leaders. Such programmes can offer women essential guidance and advocacy to help them advance in their careers and address systemic challenges. Firms should emphasise increasing female representation on decision-making committees and boards. It is not enough for women to simply fill positions; they also need the power to influence business direction and initiatives.

Communication that is open works

At Terebinth Capital, we believe that fostering an inclusive culture is vital. Encouraging open communication and valuing diverse opinions can enhance collaboration, resulting in innovative solutions. Additionally, businesses should commit themselves to transparency and accountability. By publicly sharing gender diversity data and setting specific targets, they can evaluate their progress and take responsibility. This transparency not only shows a genuine desire for change but also enhances the organisation’s standing with clients and investors who care about ethical and inclusive practices.

Translating female representation into decision-making roles is vital to unlocking the full potential of female talent and achieving material change in the investment management industry. At Terebinth Capital, we have since the start incorporated this into our vision and mission. We pride ourselves on inclusion of female participation and leadership across all spheres of the business. In addition, we support others in their bid to contribute by way of various industry programmes, including the ASISA Fezeka Programme and the CFA South Africa Day of the Girl Job Shadowing initiative.

The time for action is now, as the future of investment management depends on diverse perspectives, driving innovative decision-making and sustainable growth.