A Holistic Approach to Diversity in Investing
Source: Aon
Four inflection points support diversity
Purpose
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Pipeline
Pedigree
Portfolio Managers
Institutional investors historically have focused only on the Purpose and Portfolio Manager inflection points, bringing about little systemic change to date.
Purpose
Pipeline
Pedigree
Portfolio Managers
Inflection Point:
Purpose
Build support for diverse asset manager investment program through education, research and discussion.
Key performance indicator:
Modify investment policy statement to include support for
monitoring, encouraging and investing in diversity across the portfolio
to drive returns.
Inflection Point:
Pipeline
Increase interest and access to investment industry careers
through educational outreach in partnership with Toigo Foundation, Rock The Street, Girls Who Invest, Smart Women Securities,
Junior Achievement.
Key performance indicator:
Number of young women/people of color reached nationwide
Success metrics: increase in financial literacy, likelihood to pursue finance/investing as a career, internships, etc.
Inflection Point:
Pedigree
Increase the number of women and people of color with portfolio track records for successful fund launches.
Key performance indicator:
Across entire portfolio, track:
Diversity in hiring pool
Promotion of women and people of color
Change in firm diversity across levels
Diverse portfolio management/analyst positions
Retention of diverse employees
Inflection Point:
Portfolio Managers
Allocate a percentage of the portfolio to diverse asset managers and/or institute a “Rooney Rule”—ensuring the candidate pool includes women and minorities—for manager selection.
Key performance indicator:
Number of diverse managers evaluated for allocations (initially)
Percentage of portfolio allocated to diverse managers