From the CEO

Since our founding — and as highlighted in my letters to readers in the past — the Milken Institute’s principal mission has been increasing economic opportunity to those who have historically been denied it. Events of the past two years have shown more clearly than ever the urgency of bridging the gap.

We have worked closely with the past five presidential administrations and on both sides of the aisle in Congress to help frame appropriate policies to address the issue. Two decades ago, we started our Emerging Domestic Markets initiative to promote investment in underserved U.S. markets during a time when risk capital was largely going offshore. And subsequently, our Partnership for Leading to Underserved Markets brought new focus to the needs of Black and Latino communities. To these ends, we’ve provided leadership from Institute experts and followed through with strategic convenings to refine the ideas and build commitment to change.

Since the Institute was founded, we have emphasized the reality that opening opportunity to all is not only an important social goal, but also good business to boot. We are convinced that enlightened self-interest is a more powerful engine of progress than charity alone.

Today, the tensions inherent in the ongoing transition to an equal opportunity society are more visible than ever. According to recent studies, companies in the top quartile for racial and gender diversity in employment are one-third more likely to show financial returns above industry benchmarks. And yet within the asset management industry, less than 2 percent of managers are women or persons of color.

To help close that gap, our Center for Financial Markets has launched a diversity, equity and inclusion focused DEI in Asset Management initiative. We are bringing together leaders from public and private pension plans, foundations, associations and academia to forge a coalition to spur change. We know that industry leaders are aware of how much work needs to be done and eager to do it. But we also know they are often unsure of how best to get from here to there. Our role is to motivate, inspire and connect in an effort to catalyze progress.

There is a sound strategy in focusing on the asset management industry. If those who help determine the allocation of private capital are more representative of the populations most in need of it, they can play a powerful multiplier role in making headway.

Michael Klowden, CEO