The John S. and James L. Knight Foundation released its latest findings today on who is managing the endowments of many of the nation’s largest philanthropies. The study revealed that, while grantmakers across the United States still overwhelmingly trust their billions in assets to white male managers, a growing number of foundations are making commitments to diverse-owned asset managers.

The new report, “Knight Diversity of Asset Managers Research Series: Philanthropy,” an update of the 2020 study, is part of its commitment to advancing diversity in the asset management industry. The new report reveals that:

  • The nation’s top 55 charitable foundations hold $300 billion in total assets. Thirty foundations, with $166 billion in total assets, participated in the study this year, demonstrating an increased commitment to transparency in the sector.
  • Those 30 foundations invest $11.07 billion, or 16.6% of their $67 billion in U.S.-based investment assets with firms owned by women and minorities.

The study, conducted by Candice Rosevear, a principal in the labor and discrimination practices and head of data analytics at Global Economics Group, reveals that leading grantmakers in the philanthropic sector are far outpacing the rest of the financial industry, where only 1.3% of investments are invested with firms owned by women and people of color, in entrusting their investments to diverse-owned asset management firms. Four foundations invest a third, if not more, of their assets with diverse-owned firms.

“Who you trust to manage your money speaks volumes about your values,” said Alberto Ibargüen, president of Knight Foundation. “Knight conducts this research in order to hold ourselves accountable to our mission and to encourage more transparency from our peers.  I am confident we can do better as a field to not only spread our wealth and net strong returns, but consciously diversify who manages it.”

Read the full article about increasing diversity in asset management at Knight Foundation.