Announces firmwide initiative to drive change through discussion
and data
SANTA MONICA, Calif.–(BUSINESS WIRE)–Wilshire Associates (Wilshire®) announced today the release of its first
annual report on diversity and inclusion (D&I). Based upon a survey of
more than 500 investment managers, Asset
Management Diversity in Action: a Wilshire Report, addresses whether
managers believe having diverse and inclusive teams is important and, if
so, how they are approaching diversity in their hiring and talent
retention programs.
The data reveal a stark disconnect between intention and behavior among
asset managers when it comes to D&I. While almost 60 percent of survey
participants reported their firms place high importance on diversity,
only a small handful have put in place incentives to encourage change.
Just 10 percent of firms are incorporating diversity into senior
management’s compensation, and only a few firms reward hiring managers
based on their ability to attract, retain, support and promote diverse
candidates (again 10 percent).
The main motivation behind diversity efforts, however, is clear:
managers believe it results in higher quality investment decisions and
less groupthink. Again, 60 percent of respondents ranked “improving the
quality of investment decisions” as their primary motivation for
building diverse investment teams.
When asked about those who are spearheading diversity initiatives within
their organizations, 70 percent reported that diversity efforts are led
by senior leadership or company boards, showcasing the perception that
top-down support for these efforts is critical. More than 50 percent of
firms collect diversity statistics, recognizing the importance of
tracking and measurement, although the majority of metrics remain
focused on gender diversity, rather than broader definitions of
diversity including cognitive and demographic diversity.
“Our survey underscores the need to start slow at first by defining what
D&I means for a specific firm and then acting decisively to encourage
deep-rooted and enduring change,” added Daniel E. Ingram, co-author of
Wilshire’s report and Vice President for Responsible Investment Research
and Consulting at Wilshire Associates.
Measuring Change, Driving Discussion
Reflecting the firm’s own commitment to fostering a diverse and
inclusive culture to stimulate productivity, teamwork and high-quality
performance, Wilshire has simultaneously announced its intention to
kickstart a new dialogue with investment firms around this topic.
Through the integration of several qualitative and quantitative D&I
questions in its manager research due diligence questionnaire, the firm
seeks to inspire change and develop a more nuanced understanding of
diversity approaches and outcomes in the industry.
“The asset management industry in the U.S. has long been homogenous and
encouraging a more diverse and inclusive culture is essential,” said
Reena Lalji, co-author of Wilshire’s report and Wilshire Associates’
General Counsel and member of the Board of Directors, “We hope to drive
awareness and accelerate meaningful conversations about the importance
of diversity within asset management. Measuring and reporting on the
state of the industry is a critical part of this process. We look
forward to engaging the managers in a productive dialogue on this
critical topic.”
Wilshire’s new commitment to drive diversity discussions with investment
firms follows the launch of its landmark Diverse Owned Manager
Initiative in March 2018. That initiative led to the inclusion of at
least one diverse-owned firm in every public securities manager search
Wilshire conducts for advisory clients, where products are available
that fit the client mandate.
The full report can be found here
and associated infographic here.
For more information about Wilshire, please visit www.wilshire.com.
About Wilshire Associates
Wilshire Associates, a leading global financial services firm, provides
consulting services, analytics solutions and customized investment
solutions to plan sponsors, investment managers and financial
intermediaries. Its business units include, Wilshire Analytics, Wilshire
Consulting, Wilshire Funds Management and Wilshire Private Markets. The
firm was founded in 1972, providing revolutionary technology and acting
as an early innovator in the application of investment analytics and
research to investment managers in the institutional marketplace.
Wilshire also is credited with helping to develop the field of
quantitative investment analysis that uses mathematical tools to analyze
market risks. All other business units evolved from Wilshire’s strong
analytics foundation. Wilshire developed the Wilshire 5000 Total Market
Index and became an early innovator in creating integrated
asset/liability analysis/simulation models as well as practical models
in risk budgeting through beta and active risk analysis. Wilshire has
grown to a firm of approximately 270 employees serving the needs of
investors around the world. Based in Santa Monica, California, Wilshire
provides services to clients in more than 20 countries representing
approximately 500 organizations whose combined assets exceed US $9
trillion.* With ten offices worldwide, Wilshire Associates and its
affiliates are dedicated to providing clients with the highest quality
products and services. Wilshire® and Wilshire 5000® are registered
service marks of Wilshire Associates Incorporated. Wilshire 5000 Total
Market Index℠ is a service mark of Wilshire Associates Incorporated.
Please visit www.wilshire.com
Twitter:
@WilshireAssoc
*Client assets are as represented by Pensions & Investments (P&I),
detailed in P&I’s “Largest Retirement Funds” and P&I’s “Largest Money
Managers (U.S. institutional tax-exempt assets)” as of 9/30/17 and
12/31/17, and published 2/5/18 and 5/28/18, respectively. The data in
this release are copyrighted and owned by Wilshire Associates
Incorporated.
Contacts
Prosek Partners
Tess Rodriguez
[email protected]
