While women are big players in the legal and accounting professions, Morningstar’s recent study of mutual fund managers finds they don’t make nearly the same contribution when it comes to managing money
Morningstar’s recent research report, Fund Managers by Gender, found that women in the U.S. account for 63 per cent of the accountants and advisors, 37 per cent of doctors and 33 per cent of lawyers. Yet, when it comes to mutual fund management, less than 10 per cent of portfolio managers are women.
“We examined the gender of U.S. open-end fund managers in our database and found that only 9% are women,” wrote the Morningstar report. “Women exclusively run only 2% of assets under management in the $12.6 trillion U.S. open-end mutual fund universe. The likelihood that a woman is managing a core multiasset allocation fund is even lower.”
In the U.S. women are listed as managers on 184 open-end funds out of a total of 7,700. This finding isn’t new but given women are taking greater control of their own finances, not to mention those of their family, it’s got to be disheartening for women currently managing money in both the U.S. and Canada.
“More women in the U.S. are making their own investment decisions than ever before. In one recent study, 19% of women reported being a primary decision-maker for couples’ long-term retirement savings --a figure that has doubled since 2011,” wrote Morningstar in its report. “The numbers of U.S. women financial advisors also are on the rise, with women now comprising more than a fourth of a growing profession.”
While women represent more than a quarter of financial advisors in the U.S., it seems this doesn’t carry over to fund management. But at least one firm’s trying harder than most. Dodge & Cox has six fund managers who are women out of a total of 24, almost double Franklin Templeton, the next best at 14.7 percent.
What’s going to change the dearth of women fund managers?
“Ultimately, shifting demographics may prompt the most change in the fund industry. Traditionally, women have taken a supporting role when it comes to making investment decisions,” wrote Morningstar. “Women, however, are moving into the driver’s seat. They are expected to control half of the U.S.’s private wealth by 2020--$22 trillion of assets. As women control more wealth, it’s reasonable to expect to see more women among the fund managers investing those savings.”
“We examined the gender of U.S. open-end fund managers in our database and found that only 9% are women,” wrote the Morningstar report. “Women exclusively run only 2% of assets under management in the $12.6 trillion U.S. open-end mutual fund universe. The likelihood that a woman is managing a core multiasset allocation fund is even lower.”
In the U.S. women are listed as managers on 184 open-end funds out of a total of 7,700. This finding isn’t new but given women are taking greater control of their own finances, not to mention those of their family, it’s got to be disheartening for women currently managing money in both the U.S. and Canada.
“More women in the U.S. are making their own investment decisions than ever before. In one recent study, 19% of women reported being a primary decision-maker for couples’ long-term retirement savings --a figure that has doubled since 2011,” wrote Morningstar in its report. “The numbers of U.S. women financial advisors also are on the rise, with women now comprising more than a fourth of a growing profession.”
While women represent more than a quarter of financial advisors in the U.S., it seems this doesn’t carry over to fund management. But at least one firm’s trying harder than most. Dodge & Cox has six fund managers who are women out of a total of 24, almost double Franklin Templeton, the next best at 14.7 percent.
What’s going to change the dearth of women fund managers?
“Ultimately, shifting demographics may prompt the most change in the fund industry. Traditionally, women have taken a supporting role when it comes to making investment decisions,” wrote Morningstar. “Women, however, are moving into the driver’s seat. They are expected to control half of the U.S.’s private wealth by 2020--$22 trillion of assets. As women control more wealth, it’s reasonable to expect to see more women among the fund managers investing those savings.”
