Fund family with 25% women managers far exceeds industry average

Fund family with 25% women managers far exceeds industry average
Dodge & Cox most female-friendly on Morningstar list.
JUN 23, 2015
A quarter of Dodge and Cox's portfolio managers are women, placing the San Francisco-based firm at the top of the industry for female representation in this asset management role, according to a new study that found more than 90% of fund managers are men. Six of Dodge and Cox's 24 managers are women, a Morningstar Inc. analysis of the 20 largest fund families found. More than half of the firms boasted a larger overall number of female portfolio managers, but proportion-wise, Dodge and Cox beats all. Other fund companies with the greatest percentage of women are Franklin Templeton with 15% female managers, JP Morgan with nearly 14% and Principal Funds with 13%. Lord Abbett lands at the other end of this ranking with only one of its 29 fund managers being female, the analysis found. Across all open-end U.S. mutual funds, women make up about 9% of the nation's 7,410 fund managers, according to the report. Women exclusively manage 2% of funds and 2% of the $12.6 trillion in total fund assets. Men exclusively manage 78% of funds and 74% of assets. The difference in each can be attributed to teams of women and men. In terms of investment performance, mixed-gender teams produce the greatest results, the Morningstar report found. There was no significant difference in fund performance between those managed solely by women or men. NUMBER OF WOMEN MANAGERS GROWING “The number of female portfolio managers is actually growing across the industry,” said Erin Davis, Morningstar senior equity analyst. “But the asset management industry itself is growing so rapidly that that amount of female managers is growing less rapidly than the industry as a whole.” She didn't have particular numbers to show the portion of women fund managers has fallen, but she said it's disconcerting that compared with other professions, the proportion of women is so low. About 63% of accountants and auditors are women, 37% of doctors and 33% of lawyers, according to the Morningstar report. But the financial sector always has lagged behind others in terms of female representation, Ms. Davis said.

Source: Morningstar Inc.

A survey of certified financial planner professionals last year found 23% are women, a fraction that's been the same for about a decade. About 17% of chartered financial analyst designations are held by women. Laura Lutton, director of manager research for Morningstar, called the number of women fund managers “exceedingly small,” and said Morningstar researchers expect “shifting demographics may prompt the most change in the fund industry.” 45% OF U.S. MILLIONAIRES Women today represent about 45% of U.S. millionaires and are on their way to becoming the majority. Each of Dodge and Cox's six funds have one to three female managers who are part of asset management teams that range from six to 10 portfolio managers, according to information on its website. Neither Dodge & Cox nor Jersey City, N.J.-based Lord Abbett responded to requests for comments on Morningstar's report. The Investment Company Institute, which represents mutual fund companies, said it recently backed a policy statement proposed by the Securities and Exchange Commission and other regulators related to the diversity policies of financial services firms. “Greater diversity and inclusion can promote stronger, more effective and more innovative businesses, as well as create opportunities for firms to serve a wider range of customers,” said Rachel McTague, an ICI spokeswoman. (More: What draws women to certain IBDs)

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