Board diversity

Fund governance review special
Many fund boards suffer from a lack of diversity, however it is defined. Gender diversity isn’t the only form of diversity, of course. But it is unlikely that managers who have not taken steps to improve the ratio of women to men on their boards would score well in other measurements of diversity either. Gender diversity, which is easy to identify through female names on boards, can act as a proxy for diversity in general.

As the industry seeks to adopt more ESG practices the relative lack of diversity on fund boards might become a problem.  765 funds were analysed by The NED.  59% to date have at least one woman on their boards. But 41% do not.

To read more on this story see the January issue of The NED.