Dispelling fund manager stereotypes key to driving greater industry diversity in SA

Cheree Dyers, CEO of Prescient Investment Management.

Despite the growing body of evidence that supports the benefits – both financial and social – of diversity within the local fund management sector, long-standing stereotypes regarding the industry’s perceived gender, racial and social composition continue to deter many candidates from pursuing a profession within the industry.

This is according to Cheree Dyers, CEO of Prescient Investment Management, who believes that widespread misconception around what a career in fund management actually entails, coupled with miseducation around the diverse range of opportunities available within the industry, are to blame for the existence of such stereotypes.

These stereotypes, says Dyers, prevent the industry from achieving greater diversity that has been proven to drive better results. “It has been proven, for example, that greater gender diversity is correlated with higher returns,” she says, pointing to research by Morgan Stanley which found that over a six-year period, companies with more gender diversity enjoyed a one-year return on equity that was 1.1% better than companies with low female representation.

“Too often, fund management as a sector gets inaccurately lumped into the investment banking space, which incorrectly paints the picture of a privileged, male-dominated workforce and fails to recognise the wide and diverse range of positions that are currently available within the industry.

“From the more traditional roles within business development and dealing, to research-based positions like that of an analyst or the various administrative roles that support the industry across various houses; there is not a one-size-fits-all fund manager spec that requires a specific personality type, sex or upbringing.”

To avoid getting put off or mislead by the stereotype trap, Dyers provides a few general character traits that may better serve to direct a job-seeking individual towards a profession in the fund management industry. “Fund management, across the various industry houses, tends to be very outcomes-based and is therefore best suited to people who are organised, driven and self-motivated to achieve their specific objectives.

“It is an industry where interaction with people is of high priority, so while there are positions available for more introverted individuals, the ability to effectively communicate is usually important,” she adds.

Regarding academic prerequisites, Dyers says that while a financial qualification will be necessary to perform certain roles, all that is required to enter the industry is a flair for business and a high level of curiosity. “Fund management professionals come from various academic backgrounds, with degrees ranging from B.Com Accounting, Actuarial Science or Finance, to Law and HR. However, it is not important to know everything about finance to work in our industry, as the individuals who succeed will be those who take an interest in the various topics and want to understand how things work.”

In order to break the existing fund management stereotypes and attract a more diverse group of candidates, Dyers suggests better advertising and education from within the industry itself. “If a person hasn’t had exposure to the fund management industry or the broader financial sector growing up, their aspirations to want to achieve something within that space may understandably be limited.

“As such, there needs to be an education drive on behalf of fund management practices around what it is they do and what positions they are hiring for,” she says, adding that it is also important to generate publicity around the various company-driven initiatives that currently serve to attract new talent into the industry.

“In 2017, for example, Prescient launched its Graduate Program and saw its first intake of graduates in 2018. Our Graduate Program was created to provide talented, motivated and driven young graduates with the opportunity to gain exposure to, and experience in, a leading multinational financial services business – the first steps towards a fulfilling and rewarding career in financial services.”

Dyers concludes that while there are a number of educational initiatives that the industry does currently support, there is always scope to broaden these sessions or target students from a younger age to improve reach and impact.

“There are a number of career fairs that take place at universities and colleges around the country, but these tend to be directed at students who have already shown an interest in the field and are likely doing a course in the commerce faculty. Perhaps the answer is to introduce these informative sessions at high schools to broaden students’ horizons about what career options are out there in the fund management space.”