Neurodivergence emerging as key consideration for inclusion

A key goal of diversity is to ensure all aspects of cognitive thought are taken into account to enhance decision-making — but not all money managers have included neurodivergence in those efforts.

And by not putting in the work and time necessary to ensure true inclusion for neurodivergent individuals — those with conditions that affect how the brain functions, including autism, dyslexia and ADHD — sources warned that managers may be missing out on talent.

Some money managers are thinking about neurodiversity, with programs and initiatives underway at both industry and individual firm levels. But sources agreed that, in general, disclosure and support for neurodivergent individuals is far behind other areas of diversity in investment management.

"The only true way of evidencing diversity of thought is through the inclusion of neurodiverse individuals, because scientifically neurodiverse brains are wired differently to neurotypical brains," said Jennifer Ockwell, head of institutional at Octopus Investments Ltd. in London. "If your aim — as it should be — is to achieve diversity of thought, then the inclusion of neurodiverse individuals is really important." Octopus has £12.8 billion ($15.4 billion) in assets under management.

While attention must be paid to neurodiversity in the workplace from a moral, ethical and legal point of view, sources highlighted the huge benefits and qualities that neurodivergent individuals can bring to a financial organization.

Maria Hamdani, associate professor of management at the University of Akron, in Akron, Ohio, who studies neurodiversity in the workplace, noted that neurodivergent individuals are often well-suited for the finance industry that requires attention to detail and comfort with numbers. However, it's important not to stereotype neurodivergent individuals, as many thrive in other, more creative industries as well, she said.

Noted Marisa Hall, head of the Willis Towers Watson PLC Thinking Ahead Institute in London: "Obviously there is a human side of this," with true diversity and inclusion translating into fairness, justice and equity.

But along with a values angle, there's also a business case, she said. "You cannot really have one without the other, because otherwise you're box-ticking," she said.

Speaking broadly, Ms. Hall said there are interesting traits that neurodivergent individuals can bring to a business, such as liminal thinking — being able to take oneself outside of a system, and look in on a situation, which "provides challenge" — and "radical imagination, (which is) the idea that you see the problem from different perspectives. It may not be a perspective that others are thinking of, it may not be delivered in a way you think is conventional; but it provides challenge to the status quo." There may also be valuable characteristics including loyalty and a strong sense of ethics, she added.

The societal and business case is key for Invesco Ltd., which has a neurodiversity network of employees to increase awareness and promote dialogue to help the firm create a more inclusive environment for neurodivergent individuals.

"We have a societal role to play vis-a-vis our employee population, the broader society," said Matthieu Grosclaude, chief operating officer of EMEA at Invesco in London, and senior sponsor for the $1.48 trillion money manager's neurodiversity network.

"But if you take a step back, what's really at the heart of our engagement with this is, at the end of the day, it's about diversity of thoughts. And diversity of thoughts is expressed in investment processes and operational processes and client-facing processes. So, if we were all to have people who operate and think exactly the same way, we believe it would make us less impactful because (we'd be) a less diverse organization. At the heart ... we have a responsibility of fostering that diversity of thought that in turn translates into client outcomes," he said. "Fundamentally, there's an element of business value beyond the societal impact — both are important but ... it's a combination," Mr. Grosclaude added.

Ian Iceton, London-based senior human resources practitioner for the Diversity Project's Neurodiversity chapter, agreed that "these are people who are very talented and often with unique talents."

The Diversity Project, with a membership comprising money managers, asset owners, investment consultants and other representatives, is an initiative that champions a truly diverse, equitable and inclusive investment and savings industry in the U.K.

And when there's a challenge around talent already, "why would you want to exclude a bunch of people who potentially could bring great skills to your business, because you're just not very good at working out how to recruit and retain them?" Mr. Iceton added.

Roben Dunkin, chief operations and innovation officer at PGIM Inc. in Newark, N.J., also highlighted that competition in attracting and retaining top talent in the investment management industry is fierce. "By creating a neuroinclusive work environment, we broaden our access to talent, and we are able to leverage cognitive diversity to generate better investment outcomes," she said. PGIM has $1.2 trillion in assets under management.

Other experts and advocates agreed that adopting inclusion practices for neurodivergent employees is beneficial for a company as a whole.

"That's one big thing that research is showing, that neurodiversity programs actually improve your bottom line, make your managers better, make your processes better," said the University of Akron's Ms. Hamdani.

But one of the first steps company leaders need to take is recognizing disability and neurodiversity as part of their diversity, equity and inclusion programs, Ms. Hamdani said.

"I always say that disability is the forgotten 'd' in diversity, and then neurodiversity is even (further) behind," she said.

Investors are starting to notice the lack of inclusion, as well. New York state Comptroller Thomas P. DiNapoli is one of 31 treasurers and institutional investors who have called on the companies they invest in to adopt disability inclusion practices, according to a joint investor statement on the website of Disability:IN, a global non-profit advocating for disability inclusion.

"We've taken a long position that diversity and inclusion in the workplace is an important part of good corporate practice … and we got involved with the disability inclusion piece because we really felt that that was an area that had often been overlooked," Mr. DiNapoli said in an interview, noting that neurodiversity is "certainly a part of the disability inclusion conversation."

Jill Houghton, Washington-based president and CEO of Disability:IN, shared Mr. DiNapoli and Ms. Hamdani's sentiments.

Ms. Houghton said disability is "like the silent 'd' in diversity," noting that more than 70% of disabilities are not visible to others, such as dyslexia, which she has. Ms. Houghton said she believes neurodiversity is part of the larger umbrella of disability.

However, "a lot of people who are neurodivergent don't consider what they have a disability," noted Andrew Komarow, West Hartford, Conn.-based founder of the Neurodiversity index, an index of 79 U.S.-listed companies that are leading the neurodiversity movement.

Mr. Komarow, who is autistic, said it's "very complicated" to collect employee data related to neurodiversity, as some companies are wary to ask for personal information, and some neurodivergent employees don't identify with being disabled.

The Neurodiversity index, launched in June 2021, aims to become an exchange-traded fund or mutual fund some time in the future, Mr. Komarow said, though investors cannot invest directly in the index right now.

Mr. Komarow and his team, the majority of whom are autistic, recalculate and rebalance the Neurodiversity index every six months, which means ranking all companies by proprietary formulas and research developed by the team. The weighted criteria used for determining which companies make the index include neurodivergent products, commitment to diversity and advancing neurodivergent leadership, according to the Neurodiversity index's website.

Voya Financial Inc. is currently included in the Neurodiversity index, and the index saw a return of -16.3% for the 12 months ending Dec. 30, 2022. In comparison, the S&P 500 index saw a return of -18.11% over the same period.

Other sources agreed that it's proving difficult for some managers to get their arms around what is oftentimes a hidden — and as often also unknown — difference among individuals.

"It's fair to say that neurodiversity is one of the relatively newer elements of diversity, and probably the most misunderstood. Unlike other areas of diversity and minority groups, there are not obvious characteristics — they're hidden," Octopus' Ms. Ockwell said.

About 15% of the U.K. population is neurodivergent, with diagnoses including autism, dyslexia, dyspraxia and ADHD, according to the Diversity Project. Sources said the abilities associated with these diagnoses are often ones that would be highly valued in the investment management industry, such as creativity and attention to detail.

"Inviting, elevating and including neurodivergent associates at Capital (Group) provides us with a wider set of perspectives, experiences, opinions and ideas that allow us to make smarter decisions to help advance our mission to improve people's lives through successful investing," said Cristina Santos, head of diversity, equity, inclusion and engagement, and senior vice president at Capital Group Cos. Inc. in New York. The firm has $2.2 trillion in assets under management.

PGIM's Ms. Dunkin added that neurodivergent employees "often bring new perspectives and different approaches to creating solutions. These different ways of processing are highly valued in our work and in generating the best outcomes for our clients."

Despite the statistic that about 15% of the population are neurodivergent, scarce data are available on the topic for the investment management industry.

A survey of neurodivergent individuals working in the investment and savings industry, published by the Diversity Project in October, garnered just 120 responses — which a report of the survey findings acknowledged was a small sample.

More than half of respondents (52%) said they have faced challenges at work or with recruitment due to their neurodivergence, while 51% said they have disclosed their neurodivergence to their employer. The top reason among those not choosing to tell their employer was that they worry the diagnosis will limit their career prospects, a sentiment echoed by other sources.

Many people don't reveal their conditions publicly for fear it could impact their chance of being hired, said Vivienne Ming, Berkeley, Calif.-based theoretical neuroscientist and co-founder and executive chair of Socos Labs, a research institute focused on human potential.

The concern over perceived stigma associated with having a neurodivergent condition is exacerbated by the fact that, in the U.K. at least, these diagnoses are considered under statute as a disability.

As such, "one thing I'm trying to do through involvement with various initiatives is say, we need to stop talking as a society about neurodiversity as a disability, (and rather as) being differently abled — it really is genuinely that," Octopus' Ms. Ockwell said.

As further evidence of the work that needs to be done — and the need for adjustments from employers to be truly inclusive — the Diversity Project's 2022 survey included answers to open-ended questions from respondents, with one individual responding: "I am never considered for roles or positions that I am perfectly qualified for. I'm not immediately "likable," and it takes too long for hiring managers to understand me. I struggle to put words or conversations together when put on the spot, especially regarding my personality."

Money managers are missing out on talent by not including neurodivergence as part of their diversity efforts, sources said.