Between 2008 and 2010, Americans lost $1.3 trillion in pension assets and an additional $1.2 trillion in savings and investments, according to Roger C. Altman, author of The Great Crash. Not surprisingly, faith and trust in U.S. financial institutions also took a significant hit. As the country gradually emerges from the recent recession and the financial industry begins to rebuild, corporate executives in industries across the board have a unique opportunity to help restore retirement wealth, increase employee engagement and, most crucial to the area of diversity and inclusion, change the face of the financial industry by enlisting more women and minority financial-services professionals.
Studies have shown that better financial returns can be achieved by utilizing women and minority investment talent. In fact, emerging fund managers (usually defined as independent, minority- and women-owned firms that manage less than $3 billion in assets) comprise more than 40 percent of the top quartile of performing firms, according to Northern Trust Corporation, yet they currently handle just 1 percent of pension assets.
The time is ripe for companies to distinguish themselves with the improved investment results that can be achieved by broadening their selection of investment talent. This paper will explore the current state of diversity among financial services providers (specifically, fund managers and financial planners) and, more importantly, will detail how corporate executives, regardless of industry, can impact representation within the financial services arena and improve financial outcomes for their companies and their employees.
Through this paper, readers will learn:
• How diversity within the financial services sector provides a competitive advantage for financial services providers, consumers and U.S. companies overall.
• Steps companies can take to build and ensure diversity and inclusion within the ranks of financial services providers, particularly among fund managers and financial planners.
• Concrete examples of how companies such as Verizon, William Jordan Associates and the Financial Planning Association are cultivating emerging fund managers and leveraging their impressive performance record to deliver financial success to their organizations and employees.
