The investment industry in the US and Canada have embraced a new diversity, equity and inclusion code (DEI) led by the CFA Institute, the global association of investment professionals.
The CFA Institute has announced that more than 100 finance industry organisations have already signed up to the industry’s first voluntary DEI Code for the Investment Profession in the United States and Canada within the first year of its existence.
Launched by CFA Institute in February 2022, the DEI Code fosters action to advance DEI in the investment industry through six metrics-based principles built to generate a cycle of positive change for individuals and organisations. The DEI Code also requires signatories to amplify the impact of their commitment by making the economic, business and moral case for DEI.
Signatory organisations together represent around US$11.2 trillion in assets under management. That’s approximately 10% of the investment industry’s assets under management globally, as well as some US$9.5 trillion assets under advisement, according to the CFA Institute.
SIGNATORY ORGANISATIONS
Representative signatory organisations include Alberta Investment Management Corporation, Callan, CalPERS, Cambridge Associates, Carlyle, GMO, LGIM America, MassPRIM, Mawer Investment Management, MFS Investment Management, Morgan Stanley Investment Management, Natixis Investment Managers, NEPC, LLC, Northern Trust Asset Management, Nuveen, Oaktree Capital Management, LP, PGIM, SLC Management, Wellington Management, and more.
DEI Code signatories commit to providing a confidential, annual progress report to CFA Institute using an accompanying reporting framework. CFA Institute will aggregate reporting data to provide new industry-level DEI action data, beginning in the second half of 2023. It has also started working with European investment industry leaders to explore how the DEI Code can be introduced in the UK and across Europe.
DEI ACCOUNTABILITY
“I am honoured to welcome so many leading firms to our roll call of signatory organisations to the CFA Institute Diversity, Equity, and Inclusion Code,” stated Margaret Franklin, CFA, President & CEO, CFA Institute. “We launched the DEI Code because we recognise that diverse perspectives lead to better outcomes – better outcomes for investors and better outcomes for society – and create an inclusive investment industry that will better serve and be more reflective of society as a whole.”
The CFA Institute was the first signatory to the DEI Code. “This was our acknowledgment that this work is essential, and there are no shortcuts. This is not a ‘pledge and forget’ process. By becoming a signatory to the Code, firms become accountable, and we believe accountability is the differentiator to achieving progress. I am excited to see the continuing momentum for action that the DEI Code is enabling across our industry,” continued Franklin.
Adding to her comments, Marlene Timberlake D’Adamo, Chief DEI Officer of CalPERS, and Chair of the CFA Institute Diversity, Equity, and Inclusion Steering Committee, which collaborated with CFA Institute to develop the DEI Code, said: “Industry leaders who adopt this Code as their own are leading through example. We have provided a roadmap that can guide organisations to advance best practices with sound data and analysis that demonstrates the value diversity, equity and inclusion brings to the investment industry.”
DEI BEST PRACTICE
The CFA Institute is pleased with the response to the code in the US and Canada, and is looking forward to introduce it to the investment industry in Europe. “We are so pleased with the progress of the DEI Code in just one year. We look forward to working with investment industry leaders in the UK and Europe to explore how we can introduce the DEI Code to the region, while being mindful of recognizing market, region, and cultural differences in additional adaptations of the Code,” shared Sarah Maynard, ASIP, Global Senior Head of DEI at the CFA Institute.
“For all markets, we aim to bring a workable international framework that has been created, trialled, and proven to support and drive DEI work in practice. DEI Code signatories have the support of an operationalised reporting process that helps firms to plan and evidence their progress. Critically, the Code will help us to deliver new data that highlight industry best practice and identifies where more work on DEI is urgently needed.”
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