Institutional Asset Manager Newsletter 17.01.24

Celebrating the Institutional Asset Manager service providers awards

It has been nearly eight years since gender pay reporting became mandatory in the UK for companies with more than 250 employees and during that time, financial firms have made progress of sorts.
This week we bring you news from consultancy EY’s European Financial Services Boardroom Monitor, which reports a decrease of five percentage points in the pay difference across UK financial services boardrooms between 2019 and 2023.
However, the gap remains a cavernous 25 per cent and demonstrates just how far there is to go before any kind of victory for parity can be claimed.
The picture is even worse in Europe where the gender pay gap across financial services boardrooms actually increased from 31 per cent to 36 per cent between 2019 and 2023 for non-executives.
European male directors received a staggering USD100,000 more than their female counterparts in 2023.
Omar Ali, EY Global Financial Services Leader, rightly describes the imbalance in pay between male and female peers in financial services boardrooms as "stark and concerning".
Not only do such gaps demonstrate persistent inequality in the financial services sector, but they also serve as a reminder that the very firms that carry out shareholder governance on part of their investors cannot be relied on to demonstrate high standards themselves.
The gender pay gap serves as a vital indicator to assess a company’s financial stability and commitment to diversity, equity, and inclusion, and it maybe that investors need to look at their own providers’ statistics before they trust them as to take care of their investment portfolios.
Turning to financial service firms that are demonstrating excellence in their field, this year’s Institutional Asset Manager’s Service Provider Awards showcased impressive levels of innovation.
Winners this year cite the importance of flexibility in an environment where macroeconomic factors are so influential.
For example, Karine Seguin, Head of Business Development – Fund Services, Europe, at Trident Trust, which picked up the award for best administration firm this year, says: high interest rates and geopolitical uncertainties have impacted fund raising in private markets.
"We have seen many general partners adapting their strategies and increasingly targeting private wealth investors. Solutions like feeder funds and onshore turnkey platforms are gaining traction, providing private clients access to investments traditionally reserved for institutions."
Thie ability to adapt will again be important this year, as will complying with the growing regulatory burden and meeting investors’ ever higher service expectations.
To see a full list of winners and hear from some of this year’s award recipients, read our Special Report.

Gill Wadsworth, Editor, Institutional Asset Manager
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