How investment firms can promote diversity and inclusion

Incorporating successful diversity, equity and inclusion (DEI) strategies requires three distinct components, according to a recent report from the CFA Institute.

This week the institute released the findings of its Experimental Partners Program, an international project that called on 41 investment organizations to test the efficacy of DEI practices in the investment industry.

Overall, the association found that successful DEI programs relied on three components: leadership that is committed, trained and accountable; frequent, informative, two-way communication with employees; and a DEI plan embedded in the overall business strategy.

The report outlines practical takeaways to advance DEI, and includes strategies to attain “behavioural and organizational change” within firms as they work to incorporate successful DEI strategies, a release said.

“In what has become a highly dynamic period of global change, the Experimental Partners Program brings forth a wealth of new data, both qualitative and quantitative, that firms of all sizes can draw upon to help shape and sustain their DEI strategies,” said Margaret Franklin, president and CEO of the CFA Institute, in the release.

The Experimental Partners Program ran from July 2019 to December 2020. Participating organizations ranged from small one-office firms to global companies with multiple locations, and represented approximately US$26 trillion in assets under management.

Overall, 10% of participating organizations were in Canada.

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