Board diversity: long overdue

What can be done to make both manager and fund boards more diverse – by gender, race, background, experience etc? Institutional investors are gravitating to the funds of managers that embrace board diversity. There is also growing body of evidence that cognitive diversity on boards improves their performance.

Even though it should be about more than race or gender, board diversity is likely to become a more urgent matter as a result of the series of events that have taken place around the world, in the aftermath of the killing of George Floyd in Minnesota. Those events look like they will be more consequential than is usually the case when police brutality is exposed in the US. In the UK, for example, the government has set up a commission to look into race inequality.

Up until now the asset management industry has escaped scrutiny of its own record on diversity – however diversity is defined.

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