Women- and minority-owned asset management firms currently control only 1.4 percent of the over $82 trillion in managed assets in the United States compared to the 98.6 percent of assets controlled by firms owned by White men. To be considered minority-owned, a firm must be more than 50 percent owned by members of underrepresented groups. It must also have a person who is in charge that is a member of a racial or ethnic minority.
Emmanuel Cleaver II, a member of Congress from Missouri, has introduced legislation entitled the Endowment Transparency Act of 2022 that would require colleges and universities to disclose the proportion of their assets that are managed by investment firms owned by underrepresented groups. Colleges and universities would also be required to reveal the number of investment advisers employed by the educational institutions who are members of underrepresented racial or ethnic groups
“As colleges and universities tout their efforts to diversify at every level, from the student body to the faculty and staff, I believe they are a perfect place to encourage greater opportunity in this intractable industry – and the Endowment Transparency Act is an important step in that process,” said Representative Cleaver.