Research Finds Most Foundations Dedicated to Variety in Asset Managers

The fifty largest foundations in the USA have an estimated $eight.62 billion, or 13.5 p.c, of their U.S.-based monetary property invested with women- and/or minority-owned companies, a report from the John S. and James L. Knight Basis finds.

Researched and written by the World Economics Group, the report, Variety of Asset Managers in Philanthropy (21 pages, PDF), examined IRS Type 990 and funding agency information supplied by  a subset of collaborating foundations on $63.95 billion (out of a complete of $290.three billion) in property beneath administration. In accordance with the evaluation, $6.82 billion, or 10.7 p.c of the property included within the evaluation, had been managed by companies the place the founder, co-founder, or at the least half the companions are girls, whereas $5.93 billion, or 9.three p.c, had been managed by companies the place the founder, co-founder, or at the least half the companions are individuals of shade. Of the mixed $eight.62 billion in property beneath administration by such “diversely owned” companies, roughly half was managed by companies which might be each women- and minority-owned.

The  evaluation excluded the property of twenty-four foundations that declined to take part within the research — in some circumstances attributable to contractual nondisclosure agreements — or whose property weren’t investable. They embody the Ford, Open Society, Hewlett, W.Ok. Kellogg, Packard, Moore, Simons, Margaret A. Cargill, Charles Stewart Mott, Conrad N. Hilton, Cleveland, and Irvine foundations, in addition to the J. Paul Getty Belief, the Duke Endowment, and the California Endowment.

Of the twenty-six foundations included within the evaluation, the share of property managed by diversely owned companies ranged from zero p.c on the Tulsa Group/George Kaiser Household, Robert W. Woodruff, Wyss, and Ewing Marion Kauffman foundations to 35.three p.c at Casey Household Applications and 45.9 p.c on the Knight Basis. The imply common was 13.three p.c (10.eight p.c in women-owned and 9 p.c in minority-owned companies), whereas the median was 13.5 p.c (10.9 p.c and seven.9 p.c), properly above the 1.three p.c that, in response to a 2019 Knight Basis-funded report, discovered for the $69 trillion asset administration business as a complete.

The report consists of feedback from the foundations in regards to the research’s methodology and its limitations and/or the muse’s dedication to and ongoing efforts to assist better range in asset administration.

“Change comes from data. We hope these findings enhance our understanding of who manages the monetary property of America’s prime charitable endowments and to exhibit that there is a sizable curiosity amongst traders for funding supervisor range,” stated Knight Basis CFO and treasurer Juan Martinez. “The purpose of this research is to impress dialogue. We predict that extra information and improved transparency can result in figuring out alternatives for untapped returns and a extra equitable distribution of the wealth generated by personal basis endowments.”

(Photograph credit score: GettyImages)

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