New Legislation Would Supercharge Diversity in Asset Management Industry And Put More Money in the Pockets of American Workers, Says Diverse Asset Managers Initiative
For Immediate Release: April 27, 2022
Contact: Carolyn Clendenin, cclendenin@rabengroup.com, 347-869-7382
New Legislation Would Supercharge Diversity in Asset Management Industry And Put More Money in the Pockets of American Workers, Says Diverse Asset Managers Initiative
Washington, D.C. - Today, Sen. Tim Kaine (D-VA) and Rep. Joyce Beatty (D-OH) introduced landmark legislation – The Too Narrow to Succeed Act – to bolster diversity in the asset management industry. The legislation requires federal institutional investors to release annual reports on the use of diverse-owned asset management firms. It also requires the Secretary to conduct regular surveys of best practices in asset management for increasing the utilization of diverse talent.
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:
“This is crucial legislation for the asset management industry – and Americans everywhere. For too long, the industry has been predominantly white and male – locking people of color and women out of a powerful financial sector. No major part of the enormous asset allocation industry is worse than the federal government, which has the largest pool of assets in the nation, and is dismal in its reliance on diverse money managers, according to Congressional studies.
“This isn’t just an equality issue; it’s about putting more money in the pockets of hardworking, everyday Americans who aren’t even in the asset management industry. Federal institutional investors control pension plans for millions of Americans – including veterans, public health officials, law enforcement officers, Postal Service workers, and more. A mounting body of evidence shows that diversity boosts performance. By continuing to forgo diversity, Americans aren’t getting the most out of their pension plans.
“We are so thankful for Senator Kaine & Representative Beatty’s leadership on this critical issue. With this legislation, our asset management sector will be legally required to take steps towards transparency and change. The importance of diversity in asset management will be codified into law – and Americans will benefit.”
###
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.