FROM THE KNIGHT FOUNDATION:
Knight-commissioned research reveals only 1.4% of more than $82 trillion dollars of U.S.-based assets is entrusted to diverse-owned firms
MIAMI – December 7, 2021 – "The John S. and James L. Knight Foundation released a new study today measuring diversity in the U.S.-based financial industry revealing that only 1.4 percent of assets are entrusted by investors to asset management firms owned by women and/or people of color, despite diverse-owned firms’ investment performance matching those of their less-diverse peers. Across the $82.24 trillion in assets studied in the report, nearly all are managed by white, male-owned or -led companies, according to Bella Private Markets, which conducted this new research, the third in a series designed to monitor trends in the industry."
"The report, the latest in the Knight Diversity of Asset Managers (KDAM) Research Series, is part of Knight’s commitment to increasing transparency and advancing diversity in the asset management industry. Examining four segments of the industry – mutual funds, hedge funds, private equity funds, and real estate funds – the new study reveals that diverse-owned firms remain severely underrepresented relative to other firms. Previous reports found similar disparities in industry representation, with the percentage of assets under management by diverse-owned firms barely changing over the past decade."
“With each generation more racially and ethnically diverse than the last, it is notable how much that diversity is not represented in our financial sector,” said Alberto Ibargüen, president of Knight Foundation. “The U.S. asset management industry is a cornerstone of our economy. Diverse communities are the future of our society and therefore of our economy. By diversifying who manages our nation’s wealth, we can build a more equitable and prosperous future.”