A Morningstar research report has found that, across 56 countries, one in five funds has a female portfolio manager, a ratio that has not improved since 2008.
The company’s report considered more than 26,000 fund managers, comparing the man-to-woman ratio of fund managers to other professions that require similar education, including doctors and lawyers, by country.
Countries with large financial centers have lower proportions of women fund managers than many smaller markets based on data from Morningstar’s global database. In France, Hong Kong, Israel, Singapore, and Spain, at least 20% of fund managers are women. Singapore is the global leader among 56 countries with women representing 30% of total fund managers and 29 %of Chartered Financial Analyst (CFA) charterholders.
Large financial centers, such as Brazil, India, Germany, and the United States, are behind the global average of 12.9% women fund managers. In India, only 7% of fund managers are women.
In some asset classes, women fund managers are more credentialed than men. A woman fund manager is approximately 7% and 4% more likely than a male peer to have her CFA designation among equity and fixed-income funds, respectively.
Women have better odds of running funds in areas of industry growth such as passive, funds of funds, and team-managed funds; women are 19% more likely to manage on a team than men.
In addition, it appears difficult for women to achieve management roles in more-established parts of the fund industry, including actively managed funds and solo-managed funds. In fact, women are 36% less likely to manage an active equity fund than men.
The industry’s largest equity firms are more likely to name women as fund managers than smaller firms. Among funds at one of the top 10 largest firms by global equity assets under management, there are 83 percent higher odds that a woman would be named a fund manager.
“Women are underrepresented in mutual funds’ leadership ranks globally, with larger markets farther behind smaller markets,” Laura Pavlenko Lutton, Morningstar’s director of manager research in North America, said.
“We did find areas where women are finding more opportunity, specifically among passive funds, funds of funds, and team-managed funds. Larger equity firms are also more likely to promote women to fund-management roles than smaller firms,” she added.