The case for more women in SA fund management

Despite the growing global momentum toward gender equity, women remain significantly underrepresented in South African fund management – particularly in decision-making roles. According to industry data, less than 10% of portfolio managers in South Africa are women, and the broader financial services sector reflects similar disparities. This lack of representation is not just a social issue; it’s a missed opportunity for operational efficiency and performance enhancement.

For asset managers looking to stay competitive in a rapidly evolving investment landscape, employing more women at all levels of a business is not merely a diversity exercise – it’s a strategic imperative.

The business case: Why gender diversity matters

Studies across global markets have shown that gender-diverse investment teams tend to perform better over the long term. Female fund managers often exhibit different behavioural traits – such as measured risk-taking, long-term thinking, and strong collaborative instincts – which complement those of their male counterparts. These differences lead to more balanced decision-making and improved risk-adjusted returns. In addition, institutional clients, pension funds, and ESG-focused investors are increasingly demanding transparency on diversity and inclusion. Firms that demonstrate genuine commitment to gender equity are better positioned to attract capital and retain top talent.

Operational efficiency: Where women add value

Improving gender diversity impacts operations beyond the investment desk: – Stronger Team Collaboration: Mixed-gender teams are more likely to foster inclusive dialogue, challenge groupthink, and promote constructive dissent – all of which are critical to robust investment decision-making. – Client Relationship Building: Women often bring strong interpersonal and empathetic communication styles, enhancing client trust and retention. – Innovation and Productivity: Gender-diverse teams tend to outperform on creative problem-solving, leading to more innovative product development and internal efficiencies.

How asset managers can drive change

To unlock the benefits of diversity, firms must move from intention to execution.

1. Embed Gender Inclusion into Strategy: Gender equity must be woven into the firm’s operating strategy – not just its HR function. Set measurable targets for female representation at analyst, portfolio manager, and executive levels. Link leadership KPIs to these goals to ensure accountability.
2. Build a Pipeline of Female Talent: Start early: Collaborate with universities, business schools, and financial training bodies to attract young women into investment roles. Offer internships, bursaries, and graduate programs that are designed to bring women into the profession and support their early career development.
3. Promote Based on Transparency and Merit: Research shows that women are often passed over for promotion due to informal succession practices and unconscious bias. Establish clear criteria and performance-based assessments for career advancement. Ensure female professionals are considered equally for leadership and portfolio mandates.
4. Champion Flexible Work and Inclusive Culture: Long hours and rigid work structures disproportionately affect women, especially those balancing family responsibilities. Introduce flexible work policies and normalise parental leave for both men and women. More importantly, create a culture where inclusion is valued and women’s voices are actively sought in meetings, committees, and client engagements.
5. Highlight Female Role Models: Visibility matters. Showcase the achievements of women in investment roles – internally and publicly. Encourage women to take on thought leadership roles, media appearances, and industry speaking engagements to inspire the next generation.

From representation to results

At Due Diligence SA, we believe that employing more women across fund management is not simply about fairness – it’s about better business. Firms that proactively develop, promote, and retain female talent are likely to see tangible benefits in decision quality, client satisfaction, and bottom-line performance. In a world where investors increasingly demand transparency, ethics, and innovation, gender diversity is no longer optional – it is a core component of operational excellence. South African asset managers who act now will not only help close the gender gap but gain a measurable edge in a competitive market.