America's universities talk a big game about their commitment to #DEI and have efforts to ensure classroom student diversity. Yet, many are completely opaque about how they invest their own wealth – and that's a disservice to their students and alumni. Let me explain (🧵).
The composition of kids in finance, business, and accounting programs across the US today is very different than it was when I was an undergrad in the 80s, with many more women and people of color - real progress that shouldn't be discounted! (@FIU is and has been an exception)
America's universities are developing the next generation of financial industry talent. But here's the thing: Those kids' futures aren't just being shaped in the classroom. The opportunities they get in the job market are obviously critical.
You may think that the job market is largely out of the university's hands. But that's not entirely the case. And, no, I'm not talking about kids being employed by the university.
Universities have a tremendous influence on society. Their research drives innovation and informs policy. And many have multi-billion dollar endowments.
Some even have endowments in the *tens of billions* of dollars. It might seem esoteric to some, but the firms they choose to manage that money matters. Investment firms, like most businesses, respond to their customers. And these are some really big customers!
Knight Foundation research shows that asset management firms with diverse owners employ more diverse teams (kf.org/3vGasps). Our research also shows that the investment performance of diverse owned firms are statistically the same.
With those facts in mind, we've spent years asking the 50 wealthiest universities in America for the firms that manage their endowments. We came up short, but not for lack of trying.
After dozens of emails and several public records requests– frustratingly – only 26 responded, and only 18 fully participated.
Many have long, detailed diversity strategies and statements. But how do we know they're walking-the-walk and not just talking-the-talk? Are they missing out on fostering opportunities for all their students and returns for their endowments?
And anyone interested should take a look at our report, which provides valuable insight into the investment decisions of several universities. knightfoundation.org/articles/kdam-…