DC Councilmember Robert White Introduces Major Bill To Boost Diversity in Asset Management Industry
For Immediate Release: June 28, 2021
Contact: Carolyn Clendenin, cclendenin@rabengroup.com, 347-869-7382
Diverse Asset Managers Initiative Applauds Breakthrough Legislation to Bolster Diverse Representation
Washington, D.C. - Today, Councilmember Robert White proposed landmark legislation to bolster diversity in the asset management industry. The legislation directs the District of Columbia Retirement Board to ensure diverse representation among investment consultants and asset fund managers by setting strict standards for the share of women, minority groups, and people with disabilities. And, to ensure compliance, the bill requires all investment consultants and fund managers utilized by the District government to submit yearly reports with comprehensive diversity data.
Robert Raben, founder of the Diverse Asset Managers Initiative, issued the following statement in response.
“We are thrilled by Councilmember White’s bold move to ensure diverse representation among DC pension plan managers. A mountain of research makes it clear that diversity bolsters performance. And yet, white men by and large lead the asset management industry -- primarily due to ingrained practices that inherently exclude women and people of color. If we allow the lack of diversity to continue, we are forgoing profits for the many hard-working Americans who depend on pension funds -- retired teachers, firefighters, police officers, and so on.
“Only one state -- Illinois -- has a law on the books requiring public employee pension systems to meet concrete diversity goals. Washington DC’s newly proposed legislation is next-level leadership, requiring comprehensive diversity at every level of asset management. It’s precisely what we need to move the industry forward.
“Decade after decade, the asset management industry has systemically blocked people of color and women from accessing a powerful financial sector. If Washington DC passes this legislation, it will be a national leader in the fight for racial equity.”
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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.