Highlights
Message from the Chair of the DEI in Asset Management Executive Council, Jarvis V. Hollingsworth
About the Milken Institute Inclusive Capitalism Program
ICAP at the 26th Annual Milken Institute Global Conference
HBCU Strategic Initiative and Fellows Program
Inclusive Capitalism Report Series
Message from the Chair of the DEI in Asset Management Executive Council, Jarvis V. Hollingsworth
I am pleased to lead an incredible group of individuals who are committed to the important work of DEI in the asset management industry. We have convened some of the most significant voices to push forward the best ideas and gain wide adoption.
We recognize that a homogeneous group of leaders making decisions and investing on behalf of a multiethnic, heterogeneous community may not have access to important perspectives that may be missing. It is absolutely critical that C-suites and boards become more diverse for companies to maximize shareholder value.
About the Milken Institute Inclusive Capitalism Program
Our work focuses on the importance of DEI across the business community and works toward greater diversity across asset management from the entry level to the C-suite.
The DEI in Asset Management Executive Council was created to guide the ICAP Program by leveling the playing field and providing portals of opportunity where the next generation of women and diverse leaders can thrive in top financial institutions and asset management firms.
Launched in 2021 and supported by the Carlyle Group, the Executive Council comprises the leading firms, public funds, and foundations in the industry.
ICAP at the 26th Annual Milken Institute Global Conference
The Future of Asset Classes
The ICAP team hosted several panels during the Milken Institute 26th annual Global Conference. “The Future of Asset Classes” panel examined portfolios’ ability to adapt to the most recent market cycles and discussed new opportunities that could provide risk-adjusted returns.
The panel was moderated by Bloomberg News TV Anchor Romaine Bostick and featured David Breach, president and chief operating officer of Vista Equity Partners; Sherrese Clarke Soares, founder and CEO of HarbourView Equity Partners; Edwin Conway, global head of BlackRock Alternatives; John Koudounis, president and CEO of Calamos Investments; and Kim Lew, CEO of Columbia Investment Management Company.
“[Compared to the younger analysts on our teams,] I think the people on the stage have been through cycles before, and we know that … zero interest rates were the anomaly,” said Lew. “We’re returning to constructing portfolios with [higher] interest rates in mind.”
A Conversation with Congresswoman Maxine Waters
Associate Director Troy Duffie moderated a “Conversation with Congresswoman Maxine Waters,” highlighting her work as the ranking member of the US House Committee on Financial Services, including creating the Subcommittee for Diversity and Inclusion while she served as chairwoman. Waters also covered her perspective on the recent regional banking crisis: “First Republic was failing to the tune of $100 billion, but they worked it out, and the banking in this country [remains] safe.”
The Path to Inclusive Capitalism
Following the conversation with Waters, Duffie facilitated a larger panel, “The Path to Inclusive Capitalism,” featuring Margaret Anadu, senior partner head of real estate for the Vistria Group; Saira Malik, chief investment officer for Nuveen; and executive council members Ruulke Bagijn, head of global investment solutions, Carlyle; Marcos A. Rodriguez, chairman and CEO of Palladium Equity Partners; and Neal Wilson, co-CEO and co-chief investment officer of EJF Capital.
Panelists discussed how public and private stakeholders could address challenges and enable solutions. “You can rely on the government up to a certain point,” remarked Wilson, “but you need private industry, people who have clout and the ability to look within themselves to make a difference.”
HBCU Strategic Initiative and Fellows Program
In February, the ICAP Program officially launched the HBCU Strategic Initiative and Fellows Program, an initiative created to solve for gaps in the talent pipeline of the financial industry. There are 228,000 students enrolled in 107 Historically Black Colleges and Universities (HBCUs) across the United States, accounting for 20 percent of all African American graduates today. The HBCU Strategic Initiative aims to foster an inclusive asset management industry where asset management firms value and seamlessly consider high-performing, diverse entry-level talent from HBCUs.
The HBCU Strategic Initiative Launch Day kicked off with a full day of programming for the student fellows co-hosted with education strategic partner ViableEDU. Fellows participated in fireside chats between Milken Institute Director of FinTech Nicole Valentine and ViableEDU CEO Chris White on navigating the asset management industry. Milken Institute Senior Director Blair Smith moderated a second fireside chat with Howard University Deputy Chief Investment Officer Brian Swain.
The inaugural cohort comprises 16 fellows across nine institutions, including Bethune-Cookman University, Florida A&M University, Howard University, Lincoln University, Morehouse College, Morgan State University, Norfolk State University, North Carolina A&T, and Spelman College. Over the span of eight weeks, fellows participated in intensive academic program coursework and exclusive networking opportunities focused on developing the fellows’ industry acumen and equipping them with the knowledge and resources to succeed in asset management.
Inclusive Capitalism Report Series
As the ultimate owners of capital, asset owners have the ability and responsibility to drive DEI within investment management teams and portfolios and across the asset management industry. In December 2022, the ICAP Program released The Path to Inclusive Capitalism: An Asset Owner Guide for Investment Portfolios. Centered around four core pillars, the first report serves as a guide for asset owners who are considering or have committed to taking this path, consultants who advise them, and asset managers who seek to become part of their investment portfolios. As covered in Forbes, this report promotes an open exchange of ideas about best practices for inclusive investing—a critical component to increase the percentage of the US asset management industry controlled by women- and diverse-owned firms.
The upcoming companion piece Inclusive Capitalism: Seven Strategies for Specific Action in Asset Management, builds on the four core components of inclusive capitalism identified in the previous report. Each of the seven strategies in the report will address the only 1.4 percent representation of Black, Indigenous, and people of color in an $86 trillion industry. The summary is available now, and the report will be available in the summer of 2023.