Ethnicity Investing Gap

City Hive Think Tank: Ethnicity Investing Study

It is no secret that ethnicity and gender pension exist and continue to be galvanised by factors including the prevailing ethnicity and gender pay gaps. With women and ethnic minorities generally earning less than their white and male counterparts, they have less capital available, so make lower contributions to their pension pods over a lifetime of work.

While action to address the existing gender pay gap, and policies like auto enrolment have been introduced, they are only partially effective in addressing the issue. The investment industry needs to rethink what can be done to address these gaps and create the necessary support and guidance to close them.

In October 2021, City Hive, with support from White Marble, Schroders and a consortium of retail and institutional asset managers published Ethnicity Investment Gap: Closing the Gap for Equality, a report designed to explore attitudes towards investments amongst women, minorities and other seldom heard groups.

The research informing the report involved carrying out a survey on general financial attitudes and practices (as a precursor to investment practice) which was shared with white and non-white respondents. This was followed by a series of in-depth interviews with a range of men and women across demographic characteristics, all of whom were non-white. The study additionally explored how investment firms can attract increased and sustained participation from women and ethnic minorities that are able to save and invest. This involved speaking with communities who are rarely asked about their financial behaviours and attitudes.

Findings were distilled into report that created a series of recommendations about how the industry can better communicate, advise, and understand its future customers.

Click here to download the report