Diverse Managers Outperform, Yet Remain Overlooked

New report reveals diverse fund managers outperforming traditional benchmarks, with women and racially diverse managers achieving a sixteen percent internal rate of return. Despite these impressive numbers, institutional investors continue to overlook these high-performing managers, risking substantial returns and innovative opportunities. The California Wellness Foundation, managing a one billion dollar endowment, has seen firsthand the benefits of investing with diverse managers, reporting steady, market-rate performance and a broader positive impact on their mission. Research from leading firms like McKinsey and Boston Consulting Group further supports this, showing that companies led by women and people of color consistently outperform their peers. However, a Knight Foundation survey revealed that only one point four percent of the eighty-two trillion dollars in assets under management in the US was invested with diverse managers in two thousand twenty-one. This suggests that the real risk in todays investment landscape isnt embracing new approaches, but rather sticking to outdated methods and expecting superior results.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.