On the recordApril 27, 2022
today I am introducing the Too Narrow to Succeed Act with my colleagues Senators Booker, Murray, and Menendez. Enacting this bill would increase opportunities for women- and minority-owned asset management firms to direct investments and strengthen our Nation's retirement security. Women- and minority-owned firms are significantly underrepresented in asset management, managing just over 1 percent of the sector's assets under management. This severe underrepresentation also extends to employment within the industry. This is not due to a lack of diverse talent; women- and minority-owned asset management firms have consistently performed just as well as or better than other firms in terms of returns on investment. In fact, women- and minority-owned firms are overrepresented among top-performing firms. Having a diverse portfolio is a key part of having healthy finances because diversifying investments mitigates risk and improves long-term returns. Far too often, however, those making investment decisions at our Nation's financial firms are not diverse. If asset managers have too narrow a perspective, the/place the financial success of their clients at risk. This commonsense legislation supports asset managers' fiduciary responsibility to deliver returns to investors, and it will help ensure a safe financial future for workers and their families. I hope my colleagues will support this bill. ____________________
