The representation of women in senior roles within the UK investment management sector improved in 2023, though top-paid positions remain overwhelmingly held by men, according to

research by The Investment Association (IA).

British firms have made strides to enhance workforce diversity, driven partly by regulations mandating transparency in areas such as gender pay gaps. These gaps have highlighted finance as one of the UK’s most unequal industries.

In 2023, women filled 45% of executive leadership positions, an increase from 39% in 2022. In senior management, their representation rose to 42%, up from 38%. However, the proportion of women in the top pay quartile remained stagnant at 25%, while the industry’s gender pay gap decreased slightly to 23%, down by one percentage point.

Prominent female leaders in the sector include Amanda Blanc, CEO of Aviva, and Rachel Lord, head of international operations at BlackRock.

The IA attributed the lack of women in the highest-paying jobs to several factors, including a smaller proportion of women in the 50-64 age group and a higher gender disparity over the age of 35. Member feedback highlighted issues such as women leaving the workforce early to care for children, support ageing parents, or manage menopause symptoms.

Despite these challenges, the overall representation of women in the industry rose to 41% from 39%, though the increase may partly reflect improved data reporting. Men comprised 53% of the workforce, with the remaining 6% of data undisclosed.

More investment firms are collecting data on diversity metrics beyond gender, including ethnicity, disability, sexual orientation, socio-economic background, and neurodiversity.

In response to competitive pressures, 54% of surveyed firms implemented cost-cutting strategies in 2023. Among these, 37% resorted to staff layoffs, and 19% introduced recruitment freezes.

The IA survey included 58 investment firms overseeing approximately £6.5 trillion ($8.2 trillion) in assets.