Emerging/Diverse Managers
The pension plan liquidated an international equity mandate and made $1.8 billion in total commitments in September.
The firm has hired a managing director to oversee its DEI investment portfolio and HBCU investment strategy.
Expansions will help the systems reach their goal of having 15% of U.S.-based actively managed investment assets with diverse-owned firms by 2025 and 20% by 2029.
The firm has revised its due diligence questions around sustainability and diversity, equity and inclusion.
The plan hired two diverse-owned bond managers to complete a search launched earlier this year.
The consultant believes adding diverse-owned firms is not the only way nonprofits can achieve their DEI-related investment goals, and their consultants should assist them to evaluate several different approaches.
About 42% of the university’s asset managers are diÂverse-owned as of June 30, a slight downtick from the 44% reported in 2021, but up from the 40% reported in 2020.
Since beginning its diversity, equity and inclusion efforts in earnest nearly a decade ago, one investment advisor has made significant progress in having increased diverse manager hires in client portfolios to 45 firms from 10, while also having improved diversity representation in its workforce.
Artificial intelligence could be a boon for emerging or diverse-owned investment managers, though the trend carries some risks, according to the firm.
The pension plan shifted its emerging manager program to a U.S. small-cap equity mandate to increase its chances of achieving excess returns.
