InvestmentNews Diversity & Inclusion Awards: Diversity Champion
August 28, 2018 by Vanessa Drucker
BLACKROCK
Asset manager Employees:14,000 AUM:$6.3 trillion
BlackRock recruits diverse talent via Find your Future Forums for college students, as well as scholarship programs. The firm’s incoming graduate class of 2018 (its global analyst program) is 56% female, and the most diverse to date.
“At BlackRock, we believe diverse teams produce the best solutions to the complex issues facing clients and industry,” said Jeff Smith, global head of human resources. “Our approach to inclusion allows all kinds of diversity to thrive — we support each other regardless of our differences.”
Several programs advance diverse groups through the ranks, like the Women’s Leadership Forum. Its Leadership Excellence and Development program also targets emerging leaders in areas such as gender, LGBTQ, and ethnicity.
A variety of active employee networks foster and support diverse backgrounds, experiences and perspectives, and each has a dedicated sponsor from the Global Executive Committee. Examples include Women’s Initiative Network, OUT & Allies Network, Families at BlackRock, Veterans Network, Black Professionals Network and Ability Network — the latter for those with disabilities or disabled family members.
It is noteworthy that OUT & Allies expanded two years ago into Asia, and recently celebrated its 10th anniversary.
Contact Kristin Sadlon, director, at kristin.sadlon@blackrock.com to learn more about the firm’s diversity and inclusion initiatives.
— Vanessa Drucker
BROADRIDGE FINANCIAL SOLUTIONS
Fintech company Employees:10,000+ AUM:N/A
Broadridge CEO Rich Daly has spearheaded his firm’s efforts to increase diversity and inclusion. He initiated the Broadridge Inclusive Pledge, which promises to build on existing efforts to increase diversity, to ensure hiring and promotion practices to reduce unconscious bias and structural barriers, and to incorporate diverse representation.
“For Broadridge to be successful, our associates must reflect the diversity of the financial industry we serve, and the communities and cultures in which we operate,” said Frieda Lewis, chief commercial diversity officer at Broadridge.
The firm formed its first employee resource group, the Women’s Leadership Forum, in 2010. Two more followed: Leading Broadridge to Greater Awareness for LGBTQ employees and allies, and the Multi-Cultural Associate Network.
An Executive Diversity Committee and a separate Inclusion Board track the company’s progress and commitments in diversity and inclusion. Broadridge has been named one of the “Best Places to Work for LGBTQ Equality” for five consecutive years by the Human Rights Campaign Foundation.
The firm gives more than 24,000 diverse students across New York City and Long Island access to the Stock Market Game, an educational tool for increasing math skills and financial awareness.
Contact Frieda Lewis, chief commercial diversity officer, at frieda.lewis@broadridge.com to learn more about its diversity and inclusion initiatives.
— Vanessa Drucker
CFP BOARD CENTER FOR FINANCIAL PLANNING
Association research center Employees:65 (at CFP Board) AUM:N/A
The CFP Board Center for Financial Planning was established in 2016 to address the lack of gender and racial diversity within the financial planning profession. To understand why certain populations are underrepresented, the center engaged Fondulas Strategic Research and its partner Focus Pointe Global to conduct a comprehensive research study to identify barriers on racial and ethnic diversity in the workplace.
This research will provide the foundation for the center’s first-ever diversity summit, to be held in October 2018. Meanwhile, other center research inspired the Center’s “I am a CFP® Pro” campaign, which engages and encourages young people — particularly women and people of color — to join the profession, by highlighting the benefits and dispelling misconceptions.
The Center is also administering two scholarship programs designed to help women and people of color pursue education for CFP® certification. To date, 20 scholarships have been awarded.
“It is essential that we secure a solid pipeline of future financial planners who are equipped with the knowledge and skills to ethically serve an increasingly diverse American public,” said Marilyn Mohrman-Gillis, executive director, CFP Board Center for Financial Planning. “The Center has made significant headway, but this is a marathon, not a sprint.”
Contact Marilyn Mohrman-Gillis, executive director, at mmohrman-gillis@cfpboard.org to learn more about the center’s diversity and inclusion initiatives.
— Vanessa Drucker
IMPAX ASSET MANAGEMENT LLC/PAX WORLD FUNDS
Asset Manager Employees:52 AUM:$4.7 billion
Impax Asset Management’s Pax World Funds pioneered pay equality and gender diversity in corporate leadership. The firm has long required that its finalist pool for any hire must include at least one woman, preferably with minority representation, too. Despite its small size, the firm works to close gender pay disparities, and annually discloses gender pay ratios.
“Gender equality is the great human rights issue of our time. Tackling it will unleash unprecedented economic growth,” said Joe Keefe, president of Pax World Funds and Impax Asset Management.
The firm’s two mutual fund boards each include five women and three men; the most senior management team has seven women and four men.
The focus of the Pax Ellevate Global Women’s Leadership Fund, launched in 2014 with Sallie Krawcheck, is investing in companies most highly rated for advancing women at senior management and board level.
Mr. Keefe is a founder of the Thirty Percent Coalition, which seeks to assure that women hold 30% of public company board seats in the U.S. He has received numerous awards for promoting gender equality, and the Financial Times even named him one of its 10 ” Top Feminist Men” for helping women succeed.
Contact Kelly Coyne, vice president for global women’s strategies, at k.coyne@impaxam.com to learn more about its diversity and inclusion initiatives.
— Vanessa Drucker
MORGAN STANLEY WEALTH MANAGEMENT
Wirehouse Employees:15,600 AUM:$2.4 trillion
Morgan Stanley supports women and minorities at every stage in their careers. Over 50% of its financial adviser trainees last year were either female or ethnically diverse.
The firm recently gathered 300 top female financial advisers for its third biennial Women’s Leadership Summit, where workshops also explored social media, work-life balance, resilience and multicultural marketing. A similar annual event, the biennial Multicultural Leadership Summit, features ethnically diverse entrepreneurs, thought leaders, C-suite executives and industry experts.
Makers@ Morgan Stanley, another annual event, celebrates tales of groundbreaking women who are innovators and advocates at the firm and in their communities. Most recently, the firm has launched a disability Network, focused on supporting those with physical, as well as invisible, disabilities.
“The success of our business depends on looking like the clients and communities we serve,” said Shelley O’Connor, Co-Head of Morgan Stanley Wealth Management. “Advancing a diverse workforce is both good business and the right thing to do.”
Morgan Stanley develops junior talent through its multicultural professional development series that aims to engage black and Hispanic employees through professional development and interaction with firm leaders, to help participants build networks for career success.
Contact Miguel Mendez, vice president and senior program manager, at Miguel.Mendez@morganstanley.com to learn more about its diversity and inclusion initiatives.
— Vanessa Drucker
NORTHERN TRUST ASSET MANAGEMENT
Asset manager Employees:750 AUM:$946 billion
Northern Trust Asset Management’s commitment to diversity and inclusion is reflected in its senior management ranks, and its use of a director of global diversity and inclusion to ensure progressiveness in programs, trainings and policies. The senior leadership team is gender and ethnically diverse, with women representing 38% of top executives and African-Americans 23% of the board.
Additionally, since the 1980s, the company has supported Business Resource Councils, including groups focused on Asian, Black, Latino and LGBTQ professionals.
“We believe that bringing together individuals with diverse experiences, perspective and qualities leads to better business outcomes, and creates great opportunities for all stakeholders,” said Shundrawn Thomas, president of Northern Trust Asset Management.
Beyond its own walls, the company promotes diversity and inclusion in the broader marketplace. A minority-owned brokerage program aims to execute 10% of all equity security trading commissions with minority brokers for approximately 120 common and collective investment trusts. Furthermore, an emerging managers program, invests about $2.4 billion with over 25 emerging and minority-owned investment management firms through manager-of-managers programs.
The bank has a history of groundbreaking inclusion. Fifteen years before the federal government recognized same-sex marriage, Northern Trust became the second U.S. bank to offer benefits for both same-sex couples.
Contact Connie Lindsey, head of corporate social responsibility and global diversity & inclusion at cl5@ntrs.com, to learn more about its diversity and inclusion initiatives.
— Vanessa Drucker
OPPENHEIMERFUNDS INC.
Asset manager Employees:2000+ AUM:$246 billion
At OppenheimerFunds, the senior leadership team champions efforts to increase the diversity and inclusivity of its culture. For instance, it spearheaded business resource groups to represent any demographics underrepresented at the firm. These groups arrange network events, such as a February 2018 FourBlock event that helped prepare veterans, disabled attendees and persons of color for job interviews and introduced them to firm members.
James White, Head of Diversity and Inclusion, a dedicated function, joined in 2015 with OppenheimerFunds. In 2017, he partnered with the firm’s distribution team, to develop a national campaign focused on women, the LGBTQ+ community, and people of color.
“In our hyper-competitive industry, diverse thinking is critical to innovation, and comes from a diverse and inclusive workforce. We can lead or fall behind. We chose to lead,” said Art Steinmetz, chairman and CEO.
Over recent years, the firm has partnered with organizations like Inroads (underserved youth), the YWCA USA (underserved youth), the Jackie Robinson Foundation (black professionals), FourBlock (military), Girls Who Invest (women), Women in ETFs (women), the Blind Institute of Technology (disabled) and Out for Business (LGBT).
Contact James White, head of diversity and inclusion, at jameswhite@ofiglobal.com to learn more about its diversity and inclusion initiatives.
— Vanessa Drucker
RAYMOND JAMES FINANCIAL
Broker-dealer Employees:12,700 AUM:$753 billion
“It’s crucial to build a strong foundation of diversity and inclusion in our field — not only to leverage a variety of perspectives in support of business success, but also in better support of our associates, advisors and their clients,” said Tash Elwyn, president and CEO, Raymond James & Associates.
In 2017, Raymond James increased the diversity of candidate slates for all posted positions.
Initiatives to attract new professionals include the Network for Women Advisors Second Career efforts, and diversity-focused events like the St. Pete Pride Parade. As a result, 90% of final candidate slates include women or people of color, and over half of associates hired in 2017 were diverse. At the upper management/executive level, diversity reached nearly 20% in 2017, and 30% on the board of directors in 2018.
Raymond James’ Network for Women Advisors, launched by a female group over 20 years ago, has grown to more than 1,100 women. Likewise, Raymond James’ Black Financial Advisors Network, initially a grassroots effort, has flourished. The firm’s executive committee has also tapped 15 senior leaders for its Diversity and Inclusion Advisory Council to jumpstart and champion progress.
Contact Michele Reeves, director of diversity and inclusion, at Michele.Reeves@RaymondJames.com to learn more about the firm’s diversity and inclusion initiatives.
— Vanessa Drucker
SCHWAB ADVISOR SERVICES
Custodian Employees:1,800+ AUM:$1.6 trillion
“As investor demographics shift, it is becoming increasingly important for firms to develop teams that offer a range of perspectives, experiences and backgrounds that reflect those of clients,” said Lisa Salvi, vice president of business consulting and education at Schwab Advisor Services.
Schwab Advisor Services’ RIA internship program for juniors and seniors offers students practical experience in client service, custody and trading support, portfolio construction, and financial planning. It introduces next generation individuals to the financial advice industry, and seeks to encourage more women to join the business. Since 2013, 31% of participants in the eight-week program have been women.
The firm also invites students to events like its 2017 conference and career fair, where women (44% of attendees) brainstormed in the Women’s Think Tank over women’s advancement in the industry.
Bernie Clark, executive vice president and head of Schwab Advisor Services, is a driving force behind these initiatives.
Mr. Clark participates in the events, meets students, and recently dedicated the Charles Schwab Financial Planning Suite at Virginia Tech’s Pamplin College of Business.
The company also partners with the Charles Schwab Foundation for its University Grant Program, which supports initiatives such as Texas Tech University’s week-long financial planning camp for high school students. About 46% of its participants have been female since 2016.
The firm also has created a guide for RIAs to on how to recruit women and build an inclusive culture.
Contact Leslie Tabor, managing director, business consulting & education, at RIATalentAdvantage@Schwab.com, to learn more about its diversity and inclusion initiatives.
— Vanessa Drucker
HONORABLE MENTIONS
These four firms and one association were chosen as honorable mentions in the Diversity Champion category for their impressive efforts aimed at spreading diversity and inclusion within the financial advice industry:
• AXA Advisors hosts five annual educational conferences for advisers to share best practices among these groups — African American, Asian, Hispanic, LGBTQ and women.
• Lincoln Financial Network’s hiring managers commit to interviewing at least one woman and one person of color for each open position and its leadership works with internal business resource groups aimed at enhancing Lincoln’s brand within diverse communities.
• T. Rowe Price’s business resource group PRIDE conducted first-of-its-kind research that identifies the behaviors, growth, and investing clout of the LGBTQ community in the U.S.
• UBS Financial expanded its All Bar None program designed to promote the advancement of women at UBS to dozens of cities around the country.
• The National Association of Insurance and Financial Advisors is focused on being a diversity training resource for the insurance and financial industries, hosting a symposium, a diversity award and issuing action reports.
