Gender diversity is stagnating or even declining.

The results of the 5th edition of the study “Turning Point in Asset Management: Gender Diversity Between Progress and New Restraint” show that the share of applications from women reached a new high of 38 percent in 2024. However, a disproportionately small number, only 36 percent, actually succeeded in entering the profession. We take a closer look at this discrepancy.

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The asset management industry is stagnating in terms of gender diversity, or even regressing. The overall picture is contradictory and partly illogical.

Share of female applications reached a new high of 38 percent in 2024

It is a positive development that the number of applications from women in the asset management industry is increasing. While the share of women among new entrants to the industry was still 36 percent in the 2023 study, the proportion of applications from women reached a new high of 38 percent in 2024.

This is one of the positive findings of the 5th edition of the study “Turning Point in Asset Management: Gender Diversity Between Progress and New Restraint,” conducted jointly by Fondsfrauen, KPMG Germany, and the University of Mannheim. For ten years now, we have regularly surveyed companies in the fund industry, and the results serve as an important benchmark and starting point for many of our initiatives.

Fondsfrauen encourage young women to enter the financial industry

We assume that Fondsfrauen have also contributed to the fact that more women are choosing to enter the financial industry. Through our activities, especially those targeting female students and young women, we consistently highlight how diverse, future-oriented, and not least well paid the financial industry is for women. For example, we offer a significantly discounted student membership to spark interest in the financial sector, and we run a Buddy-Programm to support career starters.

In addition, we actively address persistent prejudices among female students that deter potential applicants. These include the perception that the financial industry is not family-friendly, that it is characterized by intense competition and an elbow mentality, and that personal ethical values are incompatible with job requirements. In recent years, many of these areas have improved. Thanks to remote work and more flexible scheduling, jobs have become significantly more flexible, and the increased consideration of ESG criteria has raised ethical standards. For many women, this has opened the door to the industry.

2024 disproportionality: Female applicants are hired less often than male applicants

This makes it all the more surprising that fewer women actually succeeded in entering the financial industry last year. While women accounted for 38 percent of applications in 2024, only an underproportionate share, namely 36 percent, ultimately entered the profession.

The study results from 2017, 2020, and 2023 pointed in a different direction. In 2023, for example, only 36 percent of applicants were women, but 40 percent succeeded in entering the profession. Two years ago, the proportion of female applicants was relatively low, at just over one third, but a relatively high number of those applicants were hired. In contrast, in 2024, not only were there relatively few female applicants, but an underproportionate number of them were hired.

Companies’ explanations raise doubts

When companies are asked about the reasons, the answers raise doubts, at least for us at Fondsfrauen. Almost every company cites the low proportion of female applicants as a reason. We suspect that this is also due to a lack of infrastructure for identifying female talent. While headhunters in the past were often explicitly instructed to include female candidates on shortlists, this has increasingly become optional rather than mandatory.

It is also striking that nearly 40 percent of companies state that female applicants lack suitable qualifications. This is surprising given that statistically, girls achieve better school grades and, on average, better final qualifications, at least up to the bachelor’s level. How companies arrive at the assumption that female applicants lack qualifications warrants further investigation. At first glance, this reasoning appears illogical.

Two career barriers are identified

Two additional reasons stand out. Nearly 40 percent of companies state that women seek insufficient working hours, and some companies cite overly high expectations regarding corporate flexibility as a reason for not hiring women. These two arguments are points we want to communicate clearly to women in the financial industry.

• Part-time work is not conducive to career advancement, even if it is temporarily necessary, for example while children are young. In such cases, partners could also be more involved in caregiving to prevent excessive reductions in working hours.
• Although companies present themselves as more flexible than in the past, flexibility has its limits. Reasons include established workflows and the need to ensure consistent client contact. Excessively high demands for flexibility should therefore be reconsidered, as they can hinder career progression in practice.

Overall, the sentiment shows that we must remain vigilant. As general interest in ESG topics fades, efforts toward gender diversity also appear to be declining. This is reflected in the fact that the proportion of women in the overall workforce remains stagnant at 40 percent, only one in four leadership positions, 25 percent, is held by a woman, and only 16 percent of managing directors are female. Given the qualifications of many women, this still represents a clear underrepresentation, the pipeline remains leaky.

Anti-DEI wave from the US is also casting its shadow over Europe

We assume that the anti-DEI wave from the US is also affecting Europe. Although so far only the German company SAP has made clearly visible cuts to its diversity efforts, companies on this side of the Atlantic are generally continuing their initiatives more quietly. Measures are being renamed using more cautious wording, or efforts are pursued with less measurable targets.

This is regrettable, as companies in certain areas continue to complain about skills shortages and should therefore also tap into female talent. Moreover, it has repeatedly been confirmed that diverse teams perform better and develop a broader range of ideas, especially since half of all customers are women. What could be more logical than hiring and promoting women and men equally?

We will continue to accompany the industry on its path toward greater gender diversity, and we will remain loud.

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

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