Knight Diversity of Asset Managers Research Series
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It started with a tough question and an unacceptable answer.
In 2010, Knight Foundation leadership was asked how much of its multibillion-dollar endowment was invested with diverse-owned firms, meaning firms owned by women and people of color. When we looked at the data and the demographics, the results revealed that we were not living one of our values: our commitment to equitable, inclusive and engaged communities. Today, over one-third of our endowment, or about $931 million, is managed by diverse-owned firms.
Now, as part of Knight’s commitment to increasing transparency and advancing diversity in the asset management industry, we ask that same tough question to others. Since 2017, the Knight Diversity of Asset Managers (KDAM) research series has looked at the state of diversity across the asset management industry. As of 2021, diverse-owned firms represent just 1.4% of U.S. based assets under management. In addition, diverse-owned firms perform at a level comparable to that of their predominantly white, male owned peers.
Notably, while there is still more work to be done, the philanthropic sector is outpacing the rest of the financial industry: as of 2021, $1 out of every $6 dollars of U.S.-based investments by foundations examined in the 2021 Knight Diversity of Asset Managers: Philanthropy study is managed by diverse-owned firms.
Featured Research
Reflections from the field
To increase the hiring of diverse asset managers, foundations must lead by example
“When you know better, do better.” These wise words from the late Maya Angelou reflect Knight’s progress and commitment to identify diverse-owned asset managers when investing its endowment. In 2010, our CEO was asked how much of Knight’s $2.1 billion endowment was managed by firms owned by women or minorities. We looked it up. Given our […]
A Snapshot of Equity, Diversity and Inclusion Efforts at the Nation’s Largest Health Foundation
Since our emergence as a national foundation in 1972, the Robert Wood Johnson Foundation (RWJF) mission has been focused on improving health. In partnership with others, we are working to develop a Culture of Health rooted in equity that provides every individual with a fair and just opportunity to thrive, no matter who they are, where they live, or how much money they have […]
Casey Family Programs investment initiatives on diversity
Casey Family Programs believes in fostering diversity, equity and inclusion (DEI) both at our foundation and in our communities. This value is core to our DNA and aligns our work with the diverse constituents we serve. It is an intentional part of what we do and who we are. […]
Using Our Investment Tools to Diversify the Investment Industry
Working to diversify the asset management industry fits into a larger picture for The Chicago Community Trust and our efforts to advance equity, opportunity, and prosperity. In a city and country where wealth disparities continue to grow, financial services is a lucrative career path, but also an industry that is notoriously homogeneous. […]
What Gets Measured Gets Done: “The Three Ps” of Diversity, Equity & Inclusion
The past two years have challenged us as a society. The Black Lives Matter movement reignited a centuries-old dialogue around racial inequality and highlighted the need for urgent action. The COVID-19 pandemic reminded us of the fragility of balance sheets and the vulnerability of our communities – especially those of people of color. […]
Past Research
Diversity of Asset Managers in Philanthropy
A study to assess the representation of women and racial or ethnic minorities among investment firms used by the country’s top 50 charitable foundations For a decade, Knight Foundation has been intentional about identifying high quality, diversely-owned asset managers when investing its endowment. In response to frequent questions from a variety of stakeholders into the […]
Diversifying Investments: A Study of Ownership Diversity and Performance in the Asset Management Industry
Research across a multitude of fields and industries has identified the potential economic and social benefits of diversity. Yet the asset management industry continues to struggle with a lack of diversity. Research studies and articles have consistently documented the low level of representation by women and racial/ethnic minorities among asset managers. Analyzing and exploring diversity […]
Diversifying Investments
A study of ownership diversity in the asset management industry
Past Articles
Aligning investments with our mission: Diversifying Investment Managers
Diversification can generate better returns
Investing in Diverse Asset Managers: A Performance Imperative
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