DAMI Statement: Senate Takes Bold Step to Improve Diversity Among Asset Managers
For Immediate Release: June 3, 2022
Contact: Carolyn Clendenin, cclendenin@rabengroup.com, 347-869-7382
Diverse Asset Managers Initiative Applauds Senators’ Bold Step To Improve Diversity Among Corporate Asset Managers
Washington, D.C. - Sens. Bob Menéndez (N.J.), Elizabeth Warren (Mass.), Alex Padilla (Calif.), Tim Kaine (Va.), and John Hickenlooper (Colo.) recently sent a letter to 25 top corporations in the nation requesting information on the diversity of their corporate pension and treasury fund managers. Importantly, the letter asks corporations to break down the specific gender and racial/ethnic makeup of fund managers.
Robert Raben, executive director and founder of the Diverse Asset Managers Initiative -- an effort to bolster racial and gender representation in the asset managers industry -- issued the following statement in response:
“Senator Menendez is a longstanding, fearless champion for diversity and accountability. We applaud this new step to push companies to be transparent about their use – or more accurately, their lack of use – of diverse money managers. For far too long, corporations have shielded information about the diversity of the people managing their pension funds. But it’s abundantly clear that those managers are overwhelmingly white and male. Companies just don’t want to put the numbers on paper for public view.”
“Diversity isn’t simply a moral imperative; it’s a financial responsibility. Studies consistently show that diversity improves performance. By continuing to ignore women and people of color, corporations are forsaking their fiduciary duty to generate the best returns possible for their hard-working employees.
“With this step, we are one step closer to transparency. And with transparency comes change.”
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The Diverse Asset Managers Initiative is an effort to increase the absolute number of, and assets under management by, diverse-owned asset management firms for institutional investors, with specific focus on public, corporate, faith and labor union pension funds as well as foundation and university endowments.