Innovation & Inclusion: Why Diversity Yields Better Results | #𝐒𝐀𝐋𝐓𝐍𝐘

TL;DR

Investing in innovation and inclusion in asset management, particularly through women-led and minority-led firms, presents a valuable opportunity for higher returns and economic success.

Transcript

good afternoon and welcome to our panel on diversity and inclusion and innovation we're going to outline today the reasons that it's interesting to invest in both innovation as well as inclusion i'm lisa diaz president ceo of print street capital management we are an emerging markets innovation fund and i want to extend a special thanks to anthony ... Read More

Key Insights

• ✋ Innovation is crucial for achieving higher returns and challenging the status quo in asset management.
• 🥺 Women-led and minority-led managers offer valuable diversity in perspective and experience, leading to better performance.
• 🥺 Allocators have an arbitrage opportunity in investing in women-led firms, as they have been shown to outperform while controlling a small percentage of total assets.
• 🧔‍♀️ The under-representation of women and diverse managers in the industry needs to be addressed through increased support and investment.
• 🧑‍💼 Family offices, with their flexibility and innovative mindset, have the potential to drive change in the industry.
• 💄 Millennials and the next generation of investors prioritize socially responsible investing, making diversity and inclusion even more crucial.
• 🧑‍🤝‍🧑 Asset management industry needs to set targets, measure progress, and hold people accountable in order to increase diversity and inclusion.

Questions & Answers

Q: Why is innovation important in asset management?

Innovation in asset management is essential for generating alpha and outsize returns, as it challenges the status quo and addresses friction points in the industry.

Q: How do women-led and minority-led managers contribute to better performance?

Women-led and minority-led managers provide valuable diversity in perspective, insight, experience, and style, which has been shown to outperform traditional power groups in portfolio management.

Q: Why are women-led firms an arbitrage opportunity for allocators?

Despite only controlling 3% of total assets, women-led firms have been found to outperform, with nearly 30% of top quartile managers being women. This presents a lucrative opportunity for allocators to achieve higher returns.

Q: Can innovation be found in traditional, established companies?

Yes, innovation is not limited to upstart companies. Incumbent companies, including those considered traditional, can innovate through long-term investments and a contrarian mindset.

Summary & Key Takeaways

• Innovation is crucial for generating alpha and delivering outsize returns in asset management by challenging the status quo and finding new solutions to age-old problems.

• Women-led and minority-led managers offer valuable diversity in perspective and experience, leading to better performance and higher returns.

• Despite the small numbers, women-led firms represent a significant opportunity for allocators, as nearly 30% of top quartile managers are women.