Casting a Wider Net: Increasing Diversity in Capital Markets

October 12, 2016

Although research shows that diversity yields positive performance and returns in capital markets, minorities remain underrepresented in this industry. This joint report from The ReFund America Project, Roosevelt Institute and Service Employees International Union finds opportunities for investment consultants to both promote minority asset managers and create long-term financial value for institutional investors. The report also find that investments consultants are failing to promote minority men and women to management roles.


This report summarizes a 2016 survey designed to assess several aspects of diversity with regard to pension fund consultants, including: the representation of traditionally underrepresented staff at their firms; any policies or practices in place to promote emerging manager/MWBE firms; and challenges to implementing those policies or practices.

At the core of this report are:

  • A summary of the performance and views that investment consultants have on recommending minority and women-owned asset management firms to institutional investors.
  • A set of recommendations investment consultants and other stakeholders can do to boost their internal workplace diversity and their ability to recommend more MWBE asset managers.
  • A set of diversity questions for institutional investors to ask their investment consultants

This report serves as a performance snapshot of how investment consultants see their role in helping to diversify capital markets. Now, investment consultants have an opportunity to innovate with new strategies that both promote minority asset managers and create long-term financial value for institutional investors.