InvestmentNews Research & State Street Global Advisors Release New Study, “Women in Advice: Inspiring the Next Generation o...
February 07 2018 - 9:46AM
Business Wire
InvestmentNews and State Street Global Advisors, the asset
management business of State Street Corporation (NYSE: STT), today
announced new research into many of the reasons why women still
represent a distinct minority among the ranks of financial
advisers. The research also specifically highlights opportunities
to accelerate the inclusion and advancement of women into
leadership positions.
The new report, “Women in Advice: Inspiring the Next Generation
of Financial Advisers,” provides a detailed analysis of the
obstacles that have prevented many women from entering the
financial advice industry or ascending to leadership positions. The
research, based on a pair of quantitative surveys of advisers and
advisory firms, and qualitative interviews with nearly 20 advisers,
industry experts and financial planning students, also describes
strategies the industry can implement to correct the gender
imbalance issue and create more successful, inclusive firms.
“This study does not endorse special treatment for women seeking
a career in financial advice,” said Brie Williams, head of Practice
Management for the Global SPDR business at State Street Global
Advisors. “On the contrary it urges that we adopt a more inclusive
approach to solving the problem. We need men and women at the table
with shared ownership because this is not a women’s issue, it is a
business imperative. Studies show that diversity in leadership, and
therefore in thought, is a competitive edge for firms.”
Key findings highlighted in the report include:
- While the percentage of female
employees at independent advisory firms has held steady at about
48% since 2013, women represent just 28% of all client-facing
advising roles
- Specifically, women held 21% to 26% of
lead adviser roles during this period, but accounted for up to 49%
of the support adviser roles and up to 42% of service adviser
positions
- Women, on average, remain in tertiary
and secondary adviser roles four years longer than men
- Striking a personal balance between
career and family was the top barrier to professional advancement
in the advice industry among women (male advisers cited “lack of
networking opportunities” as the top barrier)
- Female advisers are twice as likely as
men to believe that the lack of women in leadership roles plays a
part in gender inequality in the financial advice industry (43% vs.
21%)
- Compared with just 43% of men, 62% of
women indicated that gender diversity was important to the success
of their firm; Similarly, 68% of women believe that gender
diversity is important to the success of the overall industry
compared to 45% of men
“The foundation of our research is a true understanding of the
barriers that are impeding the advancement of women and the
recognition of the importance of inclusion in the advice industry,”
said Mark Bruno, Associate Publisher at InvestmentNews and head of
InvestmentNews Research. “By identifying and analyzing these
obstacles, we are able to recommend clear strategies that
individuals and advisory firms can act on to become more inclusive,
more innovative – and ultimately more successful.”
The study, which can be downloaded here, focuses on several
opportunities to create a more gender inclusive industry,
including:
- How to increase flexibility and develop
programs that align with advisers’ needs
- How to improve training and establish
career paths that account for common obstacles
- How to promote the advisory profession
and the career opportunities available to women
Research Methodology
To support “Women in Advice: Inspiring the Next Generation of
Financial Advisers,” an online survey was fielded in August 2017,
distributed to InvestmentNews’ audience of financial advisers. The
sample, which is representative across different advisory channels,
received 612 responses in total — 208 from females and 404 from
males. The survey collected data on participants’ demographics,
current position in the industry and work history.
In addition, interviews with 18 financial advisers, financial
planning students and a range of leading subject matter experts
both within and outside of the wealth management industry were
conducted to help inform key findings and workplace
recommendations. Interviews were led by contributing research
partner, a2bplanning in conjunction with InvestmentNews Research
and the Practice Management Group at State Street Global Advisors
between June and October of 2017. Comments and observations of
these experts are included throughout the report.
Data from the 2017 InvestmentNews Adviser Compensation &
Staffing Study1 were used to provide detailed personnel information
on independent advisory firm positions. The 2017 Study was
conducted between April and June of 2017, and comprised of data —
including gender — from 353 firms and 4,382 individuals across 30
positions.
About InvestmentNews Research
The mission of InvestmentNews Research is to provide financial
advisers with the industry’s most informative practice management
studies and benchmarking reports. Our benchmarking studies are a
leading source of market intelligence for advisory firms and
industry partners, such as custodians, broker-dealers, service
providers and professional organizations. In 2009, InvestmentNews
acquired two bellwether benchmarking studies from Moss Adams LLP —
the Adviser Compensation & Staffing Study and the Financial
Performance Study of Advisory Firms.
About Practice Management and State Street Global
Advisors
The Practice Management Group at State Street Global Advisors is
dedicated to the evolving needs of wealth management firms and
financial advisers; developing business-specific insights to
facilitate growth and efficiency beyond asset management. The
award-winning thought leadership, educational programs and practice
management tools and resources available are grounded in
proprietary research and leverage the latest thinking and trends
from both industry and academia.
For nearly four decades, State Street Global Advisors has been
committed to helping financial professionals and those who rely on
them achieve their investment objectives. We partner with
institutions and financial professionals to help them reach their
goals through a rigorous, research-driven process spanning both
active and index disciplines. We take pride in working closely with
our clients to develop precise investment strategies, including our
pioneering family of SPDR ETFs. With trillions2 in assets under
management, our scale and global footprint provide access to
markets and asset classes, and allow us to deliver expert insights
and investment solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
State Street Global Advisors, One Lincoln Street, Boston, MA
02111-2900.
State Street Advisors Fund Distributors, LLC, member FINRA,
SIPC, One Lincoln Street, Boston, MA 02111
The 2017 InvestmentNews Compensation & Staffing Study was
conducted by InvestmentNews Research in partnership with The
Ensemble Practice, sponsored by Pershing Advisor Solutions LLC
2004459.1.1.NA.RTL
1 The 2017 InvestmentNews Compensation & Staffing Study was
conducted by InvestmentNews Research in partnership with The
Ensemble Practice, sponsored by Pershing Advisor Solutions LLC
2 Assets under management were $2.67 trillion as of September
30, 2017. AUM reflects approx. $36 billion (as of September 30,
2017) with respect to which State Street Global Advisors Funds
Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and
State Street Global Advisors are affiliated.
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version on businesswire.com: http://www.businesswire.com/news/home/20180207005758/en/
State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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