1 00:00:00,080 --> 00:00:03,080 Speaker 1: Fascinating piece of research out from the fund manager Alex 2 00:00:03,120 --> 00:00:06,920 Speaker 1: Forbes this week, suggesting the asset management industry should start 3 00:00:06,920 --> 00:00:10,080 Speaker 1: to invest in helping children to study math and physics 4 00:00:10,560 --> 00:00:13,200 Speaker 1: that's pure maths to ensure there's enough of a pipeline 5 00:00:13,240 --> 00:00:15,320 Speaker 1: of talent to keep the industry going in the future. 6 00:00:15,840 --> 00:00:18,760 Speaker 1: It suggests also over time, funds and regulators should not 7 00:00:18,800 --> 00:00:22,560 Speaker 1: continue with what it calls performative criteria, where people are 8 00:00:22,640 --> 00:00:25,880 Speaker 1: hired for optics rather than capability. The head of research 9 00:00:25,920 --> 00:00:29,520 Speaker 1: at Alex Forbes is Promel Ranchod at Promel. Good evening, 10 00:00:29,520 --> 00:00:31,920 Speaker 1: and thanks for your time. So, as you point out, 11 00:00:31,960 --> 00:00:34,520 Speaker 1: your industry has become a lot more diverse over the years, 12 00:00:35,040 --> 00:00:38,080 Speaker 1: even though at the top level, I suppose men still 13 00:00:38,120 --> 00:00:40,480 Speaker 1: make up I think eighty percent of the positions. You're 14 00:00:40,479 --> 00:00:44,000 Speaker 1: clearly very worried about the pipeline of talent coming through, 15 00:00:44,040 --> 00:00:47,279 Speaker 1: and this is really about maths skills, skills that we're 16 00:00:47,280 --> 00:00:50,120 Speaker 1: teaching our children. What do you think the industry can 17 00:00:50,159 --> 00:00:50,760 Speaker 1: do about it? 18 00:00:52,560 --> 00:00:55,160 Speaker 2: Good evening, Stephen, thank you for having us. Yeah. I 19 00:00:55,200 --> 00:00:58,680 Speaker 2: think essentially we're reframing what we see as a social 20 00:00:58,800 --> 00:01:03,600 Speaker 2: issue as an investment risk and potentially an opportunity. You know, 21 00:01:03,600 --> 00:01:07,040 Speaker 2: there are multiple solutions, but I think the thrust of 22 00:01:07,600 --> 00:01:11,760 Speaker 2: the research here is suggesting that, you know, whilst making 23 00:01:11,840 --> 00:01:17,880 Speaker 2: difference at senior levels of talent, that at the grassroots level, 24 00:01:17,920 --> 00:01:22,679 Speaker 2: at school foundation phase education, there's potentially a deficiency. And 25 00:01:22,680 --> 00:01:25,679 Speaker 2: if you're managing money for the long term, we need 26 00:01:25,720 --> 00:01:28,520 Speaker 2: a healthy pipeline of talent to be coming through. 27 00:01:29,440 --> 00:01:32,600 Speaker 1: Is it about, you know, literally helping the basic education 28 00:01:32,720 --> 00:01:35,959 Speaker 1: department keep children in pure maths rather than maths lits, 29 00:01:35,959 --> 00:01:38,320 Speaker 1: I mean things like that. However you would go about 30 00:01:38,319 --> 00:01:38,760 Speaker 1: doing that? 31 00:01:40,520 --> 00:01:45,440 Speaker 2: Yeah, I think Steven, you're important question the topic of 32 00:01:45,520 --> 00:01:49,160 Speaker 2: maths pers max literacy. It's a bit beyond our domain 33 00:01:49,200 --> 00:01:54,000 Speaker 2: of expertise, but certainly safety say that, you know, not 34 00:01:54,480 --> 00:01:58,000 Speaker 2: every career path is going to require the skill set, 35 00:01:58,360 --> 00:02:04,520 Speaker 2: and so yeah, you know where it benefits the investment field, 36 00:02:04,800 --> 00:02:10,680 Speaker 2: We definitely would appreciate math talent coming through the pipeline, 37 00:02:10,720 --> 00:02:14,440 Speaker 2: and you know the Department of Education has anything to 38 00:02:14,440 --> 00:02:15,440 Speaker 2: do about it that will. 39 00:02:15,240 --> 00:02:19,919 Speaker 1: Help you suggest when you suggest that the industry can't 40 00:02:19,960 --> 00:02:21,960 Speaker 1: continue with I think the way you put it was 41 00:02:21,960 --> 00:02:25,160 Speaker 1: performative criteria where people are hired for optics rather than 42 00:02:25,160 --> 00:02:28,720 Speaker 1: capability and I think promal there might be more than 43 00:02:28,800 --> 00:02:31,160 Speaker 1: one way to understand that. What are you saying? 44 00:02:33,400 --> 00:02:38,520 Speaker 2: I think essentially, if we're looking at today's problem, that 45 00:02:38,639 --> 00:02:41,840 Speaker 2: might not necessarily be the same ray in which it's 46 00:02:41,880 --> 00:02:45,240 Speaker 2: going to play out going forward. So you know, whilst 47 00:02:45,280 --> 00:02:50,480 Speaker 2: we can acknowledge the matter on diversity or transformation, it's 48 00:02:50,520 --> 00:02:54,560 Speaker 2: about deepening the bench so that transformation can become quite sustainable. 49 00:02:56,400 --> 00:02:59,799 Speaker 1: So you're talking about I mean, do you foresee a 50 00:02:59,800 --> 00:03:05,240 Speaker 1: few where diversity is I almost want to say the 51 00:03:05,240 --> 00:03:07,000 Speaker 1: word natural, but I think I need a better word 52 00:03:07,000 --> 00:03:11,000 Speaker 1: than that, is organic. It doesn't need to be something 53 00:03:11,000 --> 00:03:13,200 Speaker 1: because of a government policy or because of deliberate action. 54 00:03:13,639 --> 00:03:16,880 Speaker 1: It happens because it happens because the pipeline is so 55 00:03:16,960 --> 00:03:17,600 Speaker 1: full of talent. 56 00:03:19,080 --> 00:03:20,680 Speaker 2: Yeah, exactly, to be right, I mean you get the 57 00:03:20,720 --> 00:03:25,760 Speaker 2: talented question right. The industry organically becomes more competitive, more inclusive, 58 00:03:26,120 --> 00:03:30,200 Speaker 2: and then more investible without necessarily forcing the outcome. 59 00:03:31,120 --> 00:03:34,480 Speaker 1: I mean, I suppose with diversity genuine industry, the real 60 00:03:34,520 --> 00:03:36,960 Speaker 1: is is probably gender. I mean, different people will have 61 00:03:37,000 --> 00:03:39,640 Speaker 1: different views, but they seem to be very few women 62 00:03:39,680 --> 00:03:42,560 Speaker 1: at the top level. Do you believe that's going to change? 63 00:03:42,600 --> 00:03:45,080 Speaker 1: I mean, as you say a lot has changed, but 64 00:03:45,120 --> 00:03:47,240 Speaker 1: that still seems to be the one issue that kind 65 00:03:47,240 --> 00:03:48,000 Speaker 1: of sticks out of it. 66 00:03:49,840 --> 00:03:52,080 Speaker 2: Yeah, it look Stephen. You know, in looking at the 67 00:03:52,120 --> 00:03:55,640 Speaker 2: JC listed companies as well as in the asset management industry, 68 00:03:55,720 --> 00:03:58,960 Speaker 2: we certainly can see that women do make it up 69 00:03:59,120 --> 00:04:02,480 Speaker 2: to the leadership. And you know, there's a stat that 70 00:04:03,440 --> 00:04:08,200 Speaker 2: is widely spread across these companies roughly thirty percent at 71 00:04:08,240 --> 00:04:11,880 Speaker 2: the very senior leadership level. Our research suggests that, you know, 72 00:04:11,960 --> 00:04:16,520 Speaker 2: when you're looking at graduate pipeline through to portfolio management, 73 00:04:16,800 --> 00:04:21,800 Speaker 2: you are finding a step marginally higher than that, but 74 00:04:21,920 --> 00:04:23,600 Speaker 2: at some point there's a drop off. And I think 75 00:04:23,600 --> 00:04:26,400 Speaker 2: there's multiple drivers here, some of them structural, some of 76 00:04:26,440 --> 00:04:30,240 Speaker 2: them preference based, but the consistent lever we can control 77 00:04:30,560 --> 00:04:32,680 Speaker 2: is skills development and mentorship. 78 00:04:33,640 --> 00:04:35,719 Speaker 1: So in other words, you can make sure there's a 79 00:04:35,720 --> 00:04:38,039 Speaker 1: pipeline that you can work on and you can sort 80 00:04:38,040 --> 00:04:38,760 Speaker 1: of go from there. 81 00:04:40,040 --> 00:04:41,880 Speaker 2: Yeah, exactly, Thank. 82 00:04:41,680 --> 00:04:43,880 Speaker 1: You very much. Indeed, Promal Ranschard is the head of 83 00:04:43,880 --> 00:04:45,000 Speaker 1: research at alex for