Diversity – Feature


saying as an owner this is what we expect of companies and we need to expect that of ourselves as well. That’s crucial. It means we have to hold ourselves up to a high standard and the initia- tive is helping to do that.” Guett agreed. “The creation of the organisation is fantastic. It helps everyone. From our point of view, it is dependent on where the investor would like to make an impact, where their values are and where they would like to align their portfolio.”


The changing look of diversity So what does diversity and investment look like? “It is a holis- tic approach. It is trying to build an approach that is not just in one direction,” Payn said. “For us, it is around education, keeping this on the agenda and keeping on it as a topic. It is easy for topics to drop off. As other things climb up the agenda. As well as continuous engagement with the companies we invest in.”


Offering his take, Bhatia said: “Coming from the asset man- agement industry side of things, it is important that we make sure that while we are pushing, quite rightly, for greater engagement and investment policies where appropriate, as well as greater transparency in companies we are investing in, we need to be held accountable in our industry. “It is not something that will happen overnight,” Bhatia added. “We are making steps in the right direction – in terms of col-


laboration. Data is the starting point. You cannot fix a problem until you identify what the problem is.” For Guett, engagement is absolutely key. “This is not a chal- lenge that will solve itself. We actively need to set targets and move behind achieving those. For us, we invest from a portfolio perspective along three lines: one is focus, allocat- ing to those asset managers that have a more diverse background. “Second is a more holistic approach which is across the entire portfolio looking for opportunities to invest in products and services focused on the diverse part of the population, and then we have another part, one where investors are still learning about diversity. This is what we call a neutral approach. So we get everyone on board – and then as an industry we can make a difference.”


Bocle said the need to offer more diverse financial products is important. “The goal of targeting more female investors means we have to offer financial products that speak to their values and help women to save earlier, for example. This is going to be achieved through education. And as an industry we need to engage with universities. We need to have more role models, so women and other groups can see the possibilities and opportunities. And that is key.”


Diversity’s evolution


Diversity is difference – and that is what we are looking for. To ensure teams are making the best decisions.


Clare Payn, Legal & General Investment Management


Looking to the future, how did the panel hope the diversity debate would develop over the next five years. “I hope we move on from the why. Instead, is the thought about how [diversity] is baked into every company,” Payn said. “If we are not sup- porting diverse people within businesses then it is not going to thrive. I would like us to get to the point of falling off a log: it just comes naturally.” Bhatia said we need to bring out the best in people. “We want to be in a position in firms where the workforce is a good rep- resentation of their customers and society as a whole and the best people have to be in the jobs they deserve to be in – so there are no barriers in place and people can flourish.” Bocle added that chief executives need to turn their rhetoric into reality. “CEOs often say people are their best asset. So if you want to walk the walk you should invest in your people and empower human resources to innovate and make sure that employees are doing their best. But also make sure the company adapts to a changing environment. You need people who are going beyond the scope of their job description and creating innovation.” On a buoyant note, Guett said: “A world where a white male team is seen as odd because everyone is just diverse. And in terms of asset allocation, we as investors are less apprehensive about allocating to diverse teams. With a greater access to cap- ital, that would be a fantastic world to live in.”


Issue 115 | July–August 2022 | portfolio institutional | 45


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