Launching an asset management firm amid the global financial crisis with banks shuttering and hedge funds liquidating is far from how most would draw up their foray into starting their own firm.
What started out as two endowments tracking women and minority investment managers in an Excel spreadsheet has transformed into a consortium of more than 600 asset owners coming together and partnering with a fintech platform to increase investments with hundreds of diverse managers.
The Smithsonian Institution is in the process of gathering diversity statistics from its external investment managers within its $2.3 billion endowment and will publicly release the data in the future.
Cambridge Associates met its goal of doubling the percentage of its investments with diverse managers to 10% from 5% by the end of 2025 and has established a new target to increase assets held by diverse managers to 15% by 2025.
The Milken Institute launched its Historically Black Colleges and Universities Strategic Initiative and Fellowship Program on Feb. 17.
Social justice funds addressing diversity, equity and inclusion are gaining traction with a growing base of institutional investors, leading asset managers to develop and offer solutions that invest in companies and communities that support people of diverse backgrounds.
U.S. colleges and universities’ adherence to ESG principles is growing as institutions have increased their commitment to ESG in their investment policies and portfolios, while others are considering incorporating policies, according to the 2022 NACUBO-TIAA Study of Endowments.
By now, most know that less than 2% of the U.S.-based investment management industry’s $82 trillion in assets is handled by diverse managers. Maybe less know that historically Black college and university endowments make up an even smaller percentage of higher education endowments nationally.
Foundations continue to increase their investments with diverse-owned firms while peeling back the curtain and providing greater transparency on their portfolios, according to the John S. and James L. Knight Foundation’s Diversity of Asset Managers Research Series: Philanthropy.
The Diverse Asset Managers Initiative is calling on Yale University to increase its diversity, equity and inclusion ef forts.
