The next ESG? 'Diversity becomes increasing part of manager selection'

Rising trend

Industry commentators have likened growing client interest in diversity criteria when making investment decisions to the rise in demand for ESG strategies over the past five years, while analysis of firms' progress in this area is being added to most asset managers' screening processes.

A recent report by think tank New Financial called Diversity from an Investor's Perspective, which surveyed 100 asset owners globally with combined AUM of $8trn while also conducting 40 interviews with a wide range of investment market participants, revealed 13% of asset owners are including diversity criteria in their manager selections. Meanwhile, the study also noted the growing number of products based on gender equality criteria. Why IW's Women in Investment Awards has captured the imagination of the industry The report, which was supported by Columbia Threadneedle Investments...