Benefiting from an investment in gender diversify
RESEARCH shows that financial performance and gender equality is correlated. A much-quoted report from the Credit Suisse Research Institute in 2012 found that companies with women directors outperformed those without in average growth, price/book-value multiples, and return on equity. However, the industry still remains largely male dominated.
Loyiso Kula, Stakeholder Engagement Manager at Argon Asset Management addresses potential solutions and comments on interesting findings in a US research report titled ‘Women in Fund Management’.
She elaborates, “Re: gender is a US-based organisation that connects research, policy and practice to end gender inequity.”
The report offered a number of practical solutions and Kula says those worth noting in the South African context are:
Recognise and address that inequality in all forms undermines trust.
This is an essential requirement for the sustainable future of financial services.
Adopt a critical mass principle.
According to the report, ‘research in related fields has shown that with a critical mass of women in leadership roles, “magic seems to occur” in terms of improving dynamics, decision-making process and culture.’
Put money where it matters.
Invest in female talent. Require that those who make investment decisions seek out investments and investment managers that represent more diverse perspectives and experience as well as superior risk-adjusted returns.
Expand the pipeline.
Make career paths in financial industries more visible and appealing to female high school, university and graduate students. Shine a light on successful women in the field to create role models and call attention to the excitement and rewards of a career in fund management.
Kula adds, “Argon is committed to promoting diversity in the workplace. Mitigating the conscious and unconscious biases that continue to dominate our society is important to us because it speaks to the sustainability not only of our firm, but of the industry as well.
“Investing in female talent and attracting female students to a career in the financial services industry are two of the recommendations made that Argon already adheres to.”
Six female graduates are building careers in the industry as part of the asset management company’s Graduate Investments Programme.
“At the beginning of this year, we made a conscious decision to recruit trainees who displayed high intellect, strong academics, leadership potential and high emotional intelligence.
“These being qualities necessary to succeed in a high pressure environment such as ours,” she says.
“Of 674 CVs received, we hired eight candidates, six of them women. The interest from young women in our industry needs to be nurtured and we believe giving them hands-on experience from the start will provide them with all the skills necessary for a successful career as an investments professional.”
The Graduate Investments Programme focuses on exposing high-quality graduates to the investment management industry. The training takes place over three years and trainees learn about investment management, financial modelling, trading and investment valuation.
Three of the women graduate interns will head to London for a four-month training period as part of Argon’s exclusive institutional partnership with Schroders Investment Management, the largest listed independent investment management firm on the London Stock Exchange.
Kula posits that the senior female staff is evidence of Argon’s commitment to promoting gender equality.
In addition to the Graduate Programme, Argon has expanded its senior staff to include three women in senior positions: Dr Thabi Leoka, Loyiso Kula, and Dudu Tembo. These highly qualified women have all earned their positions as competent competitors in the financial sector.
Leoka holds a PhD and master’s degree in Economics from the London School of Economics as well as a master’s degree in International Economics.
She has made her mark as a leading economist at various reputable financial services companies, including Renaissance Capital, Standard Bank, Investec Asset Management (UK) and Barclays (London). Her roles included Head of RSA Macroeconomic Research and Emerging Markets Economist.
Tembo is an experienced Portfolio Manager and Equities Analyst who has managed investments in a range of industry roles for over 16 years.
She started her studies in the field of engineering, before she completed her master’s degree in science, specifically in engineering at Imperial College at London University.
Kula is the most recent addition to the Argon team, having joined the business in the role of Stakeholder Engagement Manager in July.
She holds an MBA and has extensive experience across the financial services and media industries, focusing on communications and business strategy.
She shares her passion for female empowerment as Co-Vice Chair of the Cape Town branch of the Business Women’s Association of South Africa.
She concludes “At Argon, we believe that increasing the number of women is the right thing and the smart thing to do – for individual institutions and the industry as a whole. Through efforts to include rather than exclude, you give the industry greater sustainability potential.”