DAMI Statement: Knight Foundation Study Reveals That Foundations Are Making Progress On Diversity, But Still Have A Long Way To Go
For Immediate Release: September 30, 2021
Contact: Carolyn Clendenin, cclendenin@rabengroup.com, 347-869-7382
Diverse Asset Managers Initiative Statement:
The New Knight Foundation Study Reveals That Foundations Are Making Progress On Diversity, But Still Have A Long Way To Go
Washington, D.C. - Today, the John S. and James L. Knight Foundation released a major new study analyzing the diversity of the people managing assets for the nation’s top foundations. Among the 55 foundations that Knight asked to participate, 30 provided data -- an increase in participation from previous years. The study found an overall increase in foundations investing with diverse-owned firms.
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 to the Knight Foundation's findings.
“What Knight Foundation is investing in is game-changing. Having a critical mass of large foundations willing to disclose the diversity of the people managing their assets means we can move on to the more salient question: Why is there a continued under-utilization of high-performing women and people of color? Transparency is the gateway to identifying the root causes of systemic discrimination, and improving performance by working with all the talent that’s out there.
“We are also encouraged that investment with diverse-owned firms is growing. Make no mistake: This is the fiscally responsible decision. Countless studies show that diversity drives profits; ignoring it sacrifices returns.
“While we are relieved by these positive steps forward, we are also deeply conscious of how far we have to go. The fact that so many leading foundations refused to respond is bewildering. Since so many of these foundations are so forward-leaning on gender and race, it likely speaks to the autonomy of the CIOs, and how unwilling many are to accept the fact that returns and working with people of color are not mutually exclusive.
“Foundations’ diversity figures are still low, but these Knight studies are crucial in creating a critical mass of leaders who want to find ways to improve this situation.”
###
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.