Investing in Diverse Fund Managers
A new report highlights the Kresge Foundation’s Investment Office’s progress in its efforts toward a more diverse, equitable and inclusive asset management industry.
A new report highlights the Kresge Foundation’s Investment Office’s progress in its efforts toward a more diverse, equitable and inclusive asset management industry.
As of September 2021, 1.4% of U.S. based assets were managed by women and people of color-owned firms, despite women and people of color representing 70% of the U.S. population
A new report highlights the Kresge Foundation’s Investment Office’s progress in its efforts toward a more diverse, equitable and inclusive asset management industry.
The report, In Pursuit of Alpha by Investing in Diverse Fund published by Management Leadership for Tomorrow, explores the strategy Kresge has developed to counter the underrepresentation of women and people of color in the industry.
According to the report, the foundation’s approach was focused on:
To date, 20% of the foundation’s U.S. assets under management, or $360 million, are invested with diverse-owned firms. The foundation has also increased diversity on its internal team and has led industry efforts to increase DEI awareness and transparency within the asset management field.
Key takeaways from the Kresge Foundation’s approach include:
People
Portfolio
Pulpit
According to the report, Kresge acknowledges the work that still exists and identified several obstacles and concerns including sourcing and performance.
“I’m fully confident that our performance will be improved over the next 10 years because of the diverse-owned firms we’ve identified and partnered with since launching 25% by ’25. And I’m also confident that our entire industry will benefit as others come to similar conclusions and fully embrace greater diversity within their teams and investment partners,” John Baker, chief investment officer at the Kresge Foundation said.
Want more?
Read the full report.