Given society’s pressing need to reduce systemic racial inequities in education, hiring, compensation, promotion, healthcare, environmental pollution, and mass incarceration, among many others, the asset owner’s and advisor’s most impactful potential contribution is to allocate more capital to BIPOC (Black and Indigenous people of color) managers, communities, entrepreneurs, and stakeholders. Furthermore, by not actively allocating to BIPOC managers, there may be a loss of potential financial returns. (2) Fiduciaries are expected to act with prudence, which means “acting with or showing care and thought for the future” (3) and “in the best interests of their clients(4).” Creating a substantially equivalent, but alternative due-diligence process that increases the flow of capital to BIPOC managers is consistent with the fiduciary responsibility of our organizations.
A Platform account is needed to comment.
