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 $1.07 billion, 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.
In 2022, we invited colleges and universities to participate in our research. Knight Diversity of Asset Managers Research Series: Higher Education, Interim Release shares partial results from our ongoing research into the diversity of higher education’s asset managers, because just 16 of the nation’s wealthiest 50 colleges and universities have provided data for the study so far.
Notably, while there is still more work to be done, the philanthropic sector is outpacing the rest of the financial industry. The percentage of foundation endowments managed by diverse owned firms is 18.1% as of 20212, which greatly exceeds the industry standard of 1.4% invested with diverse owned firms. This group of sophisticated investors, who depend on their returns to fund their social investments, have seen the opportunity in diverse managers and are allocating their money accordingly.
Featured Research
Recent Press Mentions
Researchers Set Out to Determine How Much Endowments Invest With Diverse Managers. Most Refused to Participate.
Top Endowments Decline to Disclose Asset Manager Diversity Data
Manager diversity data lacking at major endowments – Knight Foundation
Research Vital To Presenting Diverse Manager Disparities: Knight Foundation – FIN News
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
Casey Family Programs investment initiatives on diversity
On September 30, 2021, Knight Foundation released findings from a study assessing the representation of investment firms owned by women or members of racial or ethnic minority groups in the United States among investment firms used by the country’s top 55 charitable foundations in terms of total asset size. View the full report here and […]
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
On September 30, 2021, Knight Foundation released findings from a study assessing the representation of investment firms owned by women or members of racial or ethnic minority groups in the United States among investment firms used by the country’s top 55 charitable foundations in terms of total asset size. View the full report here and […]
Using Our Investment Tools to Diversify the Investment Industry
On September 30, 2021, Knight Foundation released findings from a study assessing the representation of investment firms owned by women or members of racial or ethnic minority groups in the United States among investment firms used by the country’s top 55 charitable foundations in terms of total asset size. View the full report here and […]
What Gets Measured Gets Done: “The Three Ps” of Diversity, Equity & Inclusion
On September 30, 2021, Knight Foundation released findings from a study assessing the representation of investment firms owned by women or members of racial or ethnic minority groups in the United States among investment firms used by the country’s top 55 charitable foundations in terms of total asset size. View the full report here and see the press […]
Aligning investments with our mission: Diversifying Investment Managers
Diversification can generate better returns
Investing in Diverse Asset Managers: A Performance Imperative
What Gets Measured Gets Done: “The Three Ps” of Diversity, Equity & Inclusion
On September 30, 2021, Knight Foundation released findings from a study assessing the representation of investment firms owned by women or members of racial or ethnic minority groups in the United States among investment firms used by the country’s top 55 charitable foundations in terms of total asset size. View the full report here and see the press […]
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