Emerging female asset managers - part 1

JULY 2023

Emerging female asset managers

Part 1: The power of intentional mentorship and community

By Isabella Mnisi, Sector Head for Asset Management and Funds and Tarryn Lyall, Client Strategist for Global Securities Services at RMB

The financial services sector in general has typically been heavily male dominated, with traditional gender biases and societal expectations continuing to have an effect to this day. The asset management space is no different – if anything, this trend is even more pronounced given the regulatory hurdles, large investor base required, and level of experience and formal training needed to be successful. Today, however, there is greater understanding of the benefits of gender diversity and inclusion, and of the unique perspective and advantages that women bring to this field.

Female asset managers have different insights, perspectives and experiences. This brings an additional element of innovation and creativity through a more diverse pool of ideas, which can improve decision-making and critical thinking ability, help to enhance risk management, develop more robust investment strategies and lead to better overall performance. In a field where innovation is increasingly the key to identifying opportunities and staying ahead of the market, new perspectives can be a source of significant competitive advantage.

From another angle, women make up a large proportion of the client base for asset management firms. Female asset managers can help to foster better relationships, tailor products and services to better meet the requirements of their female clients and improve client satisfaction overall. There are also many studies that prove that more diverse and inclusive companies tend to outperform their peers.

But how do we encourage women to pursue careers in this dynamic field, in spite of the challenges?  We were able to reach out to some inspirational women making waves in asset management  and have in-depth discussions about their careers to date, in the process gaining useful insights into how each female has succeeded in their journey. The idea was not to harp on the challenges which are widely known and understood in the industry, but to focus on the “intangible catalysts” to their success and share these insights with aspiring females in this space.

Intentional mentorship is critical

Mentorship has always been part and parcel of successfully growing a new generation into their roles, but when it comes to encouraging and increasing gender diversity, the guidance, advice and support offered by mentoring is invaluable in overcoming obstacles and in grooming the confidence required to take on the asset management world. Mentors can open doors, provide networking opportunities to gain exposure, help women to develop skills, advocate for them and champion them, all of which is critical in changing perceptions and breaking the boundaries that still exist for women in finance.

Nomathibana Okello, Managing Director and Portfolio Manager at Terebinth Capital was an Old Mutual bursary student, which gave her the initial foot in the door at Old Mutual Life Assurance Company at the start of her career. While she was given the opportunity, her drive led her to use the bursary as a platform for growth. That said, what is evident is that inner drive, complemented by people who support and mentor you on your journey, is vital, and these people can significantly impact your growth to success. She says that mentorship has been instrumental and recalls people who have both pushed and encouraged her on her path. The critical theme about the people who often have an impact from a mentorship perspective are those you work closely to; especially in the initial stage of one’s career.

“I remember one of the portfolio managers taking the time to sit with me and chat, have lunch with me and converse on various topics. They were not scared of heated debates. My direct boss was also someone who would always take the time to chat and push me to do my best. When I think of mentorship and the people who inspire me, it is always these moments that seem insignificant at first, but in retrospect, you actually realise that they were critical in driving you to a specific path,” she says.

She adds that it is the duty of business leaders to be intentional about mentoring, as this is a critical element of effective leadership, particularly in South Africa: “If you are not intentional about these things, they don’t happen, especially with hybrid working. Interactions don’t happen as naturally, and there is little chance for accidental encounters.”

Nkareng Siwale, founder of Raindance Asset Management, agrees that the power of effective mentorship and leadership are pivotal to career progression and acceleration. Before striking off on her own, she had leaders who pushed and challenged her to always be the best she could be and who set up the right conversations with the right people.

Of mentors, she says: “You need the person to advocate for you in the room you are still not allowed to enter. Therefore, when I did finally get to enter that room, more senior members of the company already knew who I was. This type of informal mentorship has been an incredible lever of my success as a woman in this business.”

The power of community

Nkareng also acknowledges the power of support beyond leadership and mentors. Role models and support are a massive asset to women, not only in their careers, but in giving them the confidence they need to pursue a career in finance in the first place.

“Entrepreneurship is lonely – the bigger your support community, the better. This includes friends and family, formal industry platforms, industry groups, forums and more. Understanding the value of networks in this industry is vital, but my family played a big role in how I conceptualised myself and my future. My sisters always told me I was smart, which gave me the conviction to study finance and economics at university,” she adds.

Nomathibana believes that stories are important to tell, simply from the perspective of exposing children to careers and paths they may not have even considered otherwise; it is not about attempting to replicate a specific path. A pivotal moment for her was watching Ranti Mothapo, who is the youngest person in the country to qualify as an actuary and qualified as South Africa’s first black actuary, telling his story on TV.

“This happened when I was in high school, and it was on the 7 pm news. Seeing him made a huge impact on me and my sisters because he had studied and qualified in South Africa. It was the first exposure I had had to this field. Two of my older sisters went on to study finance and economics, and gave me the confidence to follow suit,” she says.

A foot in the door

Sometimes, getting started is the hardest part, especially when faced with the need to break into a male-dominated industry. People are where the real power lies – from supportive and inspirational women at home to public figures, community is the first step in igniting the spark of desire to follow a career in finance. This spirit of community needs to continue throughout primary, secondary and tertiary education and into the workplace, where intentional mentorship and effective leaders are instrumental.

However, once women have that foot in the door, it is all too easy to simply ride the coattails of diversity and inclusion. Businesses want women, especially women of colour, to tick boxes on a BEE scorecard. It is up to us to make sure we take advantage of the opportunities and push ourselves to ensure that we grow and reach our full potential.

The second part of this two-part series looks at the importance of direction, internal drive and effective self-marketing for women in establishing a successful asset management career.