Milken Institute: Inclusive Capitalism | Corporate Compliance Insights

By neub9
2 Min Read

Strategies for Action in Asset Management

What’s in this report from the Milken Institute:

The underrepresentation of women and BIPOC (Black, Indigenous, and People of Color) individuals in the $86 trillion asset management industry poses a barrier to efficient and optimal capital markets. With only 2% of asset managers being BIPOC, there is a growing demand for underrepresented groups in the institutional investment industry. Achieving the American Dream hinges on equitable representation in asset management and among decision-makers. From entry-level to executive positions, diversity, equity, and inclusion (DEI) are critically important across the business community.

A new report by the Milken Institute, “Inclusive Capitalism: Seven Strategies for Specific Action in Asset Management,” outlines actionable steps that can significantly benefit investing, emphasizing the power of recruiting from diverse educational institutions and the importance of implementing long-term mentorship programs. The report delves into crucial topics such as standardizing a governance diversity pledge and addressing access to diverse managers.

These proposed actions aim to increase diversity, capture unrealized value, and mitigate long-term risks within the asset management sector.

Steps include:

  • Redirecting data and metrics on diversity
  • Mentoring and tracking employees from underrepresented groups
  • Standardizing a governance diversity pledge committed to addressing diversity in boards, companies, and investment portfolios
  • Intentionally convening with emerging asset managers and underrepresented asset managers
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