Case Study: Who Manages The Money? How Foundations Should Help Democratize Capital

There is a growing trend among institutional investors to take a more inclusive approach to managing capital. The recently-released report, “Who Manages the Money? How Foundations Should Help Democratize Capital,” centers on expanding the pool of investment managers to include best-in-class diverse firms. Such a shift advances both equity and fiduciary goals. Research shows that small independent investment firms often outperform larger counterparts in many asset and sub-asset classes.

Foundations lag behind other institutional investors in diversifying their mix of investment managers. Despite the mission of many to address historic inequities, foundations typically focus diversity efforts on grant making, leadership or staffing. However, they are missing a significant opportunity. Using diverse managers would allow foundations to leverage new investment talent to enhance returns, as well as create a positive social impact that holistically aligns their business practices with their philanthropic missions.

This webinar will explore the W.K. Kellogg Foundation’s work with diverse investment managers as an example of how to embed equity and inclusion in an investment portfolio. While still early, the portfolio valued at $111 million, has achieved positive performance since its 2010 inception.

Join the conversation to learn more about the process, key lessons learned and looking ahead as even more foundations may apply principles of equity not only to the grants the issue, but also to their professional services.