Klement on Investing • 3 implied HN points • 05 Jan 26
- Asset management is not a meritocracy: even when fund performance and asset gathering are easy to measure, pay and promotions often don’t follow actual results.
- Female and minority fund managers deliver similar performance and flows as their peers but earn far less — roughly 27% less for women, 20% less for minorities, and about 44% less for minority women — and their wage growth over time is weaker.
- Women and minority managers are more likely to be laid off and less likely to be promoted (for example, women ~1.7% and Asian managers ~2.4% less likely to be promoted), showing persistent unconscious bias and a need for stronger DEI action.