Asset management is losing diversity, the share of female entry-level hires is declining even though applications are increasing.

A joint study by KPMG in Germany, Fondsfrauen and the University of Mannheim, whose findings were presented on 4 November at KPMG in Frankfurt, shows that progress on gender diversity in the asset management industry has stalled. Women remain underrepresented both at entry level and in leadership positions.

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The asset management industry is at a turning point

The number of applications from women is increasing, but it is becoming harder for them to actually enter the industry compared to past years. While the share of applications from women reached a new high of 38 percent in 2024, only 36 percent actually make it into their first job. The overall share of women across the workforce also stagnates at 40 percent. Among managers the share is only 25 percent and at executive board level only 16 percent. This is shown by the 5th edition of the study “Turning Point in Asset Management: Gender Diversity between Progress and New Restraint,” conducted by KPMG Germany, Fondsfrauen and the University of Mannheim.

“The industry is at a point where it must decide how serious it is about diversity. This requires clear targets and the willingness to understand diversity as a real competitive factor, to attract talent and leverage the potential of experienced leaders,” says Maren Schmitz, Partner Financial Services and Head of Asset Management at KPMG in Germany.

Commitment to gender equality goals is lacking

Only about one third of companies surveyed (36 percent) have an equal pay policy, and less than half (45 percent) have set clear gender diversity targets. Quotas are applied only by a minority, and the trend is even declining: while 36 percent of companies had established or voluntarily introduced a women’s quota in 2020, this dropped to 27 percent in both 2022 and 2024. Support for experienced female professionals aged 50 and above is also a neglected area: fewer than one in three women (30.4 percent) in the industry is between 50 and 67 years old. Many companies offer few programs for this group, even though they represent a valuable reservoir of experience and expertise.

“Even if gender diversity is certainly valued in the asset management sector, our results show that there is still room for improvement. A meaningful expansion of existing measures is not in sight. Fondsfrauen will continue to closely accompany the industry through our work and push for progress,” says Anne Connelly, Managing Director at Fondsfrauen GmbH.

“Pink ghettos” are losing relevance

The study also examines the so-called “pink ghettos,” the areas with disproportionately high shares of women. Women continue to be overrepresented in HR (68 percent) and marketing (55 percent), although the dominance has decreased. In 2015, women still made up 91 percent of HR and 75 percent of marketing.s

A positive development is the increase of women in more technical and investment-focused functions: the share of women in portfolio management has risen from 19 percent (2015) to 32 percent (2024). However, while the traditional division of roles is weakening, advancement into central decision-making roles remains the exception. Women are now promoted at similar rates to men, but this trend barely continues at higher leadership levels. The step into senior leadership remains rare. Flexible working models show little change: part-time work is still overwhelmingly female, with 33 percent of women but only 6 percent of men working part-time. Among leaders, the share of women working part-time is 60 percent, significantly higher than the share among men.

Download the study here: Turning Point in Asset Management, Gender Diversity between Progress and Renewed Caution

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