Chicago Teachers’ Pension Fund Chief Investment Officer Angela Miller-May Testifies before U.S. House Subcommittee on Diversity and Inclusion
Testimony highlighted the approach Chicago Teachers' Pension Fund (CTPF) has used to increase opportunities for diverse investment managers over the last 20 years
The Chicago Teachers’ Pension Fund (CTPF/the Fund) Chief Investment Officer Angela Miller-May testified on behalf of the Fund before the U.S. House Committee on Financial Services Subcommittee on Diversity and Inclusion hearing entitled, “Diverse Asset Managers: Challenges, Solutions and Opportunities for Inclusion,” on Tuesday, June 25, 2019. Read the testimony here.
The hearing was led by Committee Chairwoman Joyce Beatty (D-OH), and explored the challenges minority- and women-owned firms face trying to compete in the asset management industry, and discussed legislation to increase the use of diverse asset managers by institutional investors.
“We are pleased to have the opportunity to opine on the challenges minority, women, and persons with disability (MWDBE) firms face and the importance of including them in the conversation,” stated CTPF Board of Trustees President Jeffery Blackwell. “Since the early 1990s the Fund has been a leader in this area — prioritizing these investments and relationships.”
The testimony highlighted the approach the CTPF has used to increase opportunities for diverse managers over the last 20 years. The Illinois Pension Code requires an aspirational goal of “not less than 20% of investment advisors shall be minorities, women, and persons with disabilities.” CTPF has far exceeded that goal by investing 44% or $4.6 billion of total assets with MWDBE-owned firms as of March 31, 2019. A breakout of the $4.6 billion includes:
- 58.2% or $2.69B invested with Women-Owned firms
- 25.3% or $1.17B invested with African-American Owned firms
- 12.0% or $555.6M invested with Latino-Owned firms
- 3.3% or $151.0M invested with Asian-American Owned firms
- 0.6% or $25.9M invested with Persons with Disability-Owned firms
- 0.3% or $9.7M invested with Multiple Minority Owned firms
The testimony also offered the opportunity to highlight the key practices that CTPF has used to increase opportunities for diverse managers including:
- Securing the commitment of Illinois legislators, CTPF trustees, and senior management, which has made diversity and inclusion a part of the Fund’s culture.
- Removing barriers by drafting request for proposals with open and inclusive language, ensuring that qualified diverse managers will be included as finalists in our manager searches.
- Implementing policies and systematically making it the responsibility of every CTPF investment professional and every CTPF employee to be inclusive and encourage diversity.
- Tracking our performance in reference to our policy goals to identify areas where improvement is needed and by tracking the performance of diverse managers.
- Establishing a process of outreach by having an open door policy, by engaging with organizations that promote diversity to help identify qualified diverse managers and build long-term relationships.
Others witnesses included Juan Martinez, Vice President/Chief Executive Officer and Treasurer, Knight Foundation; John Rogers, Chairman, CEO & Chief Investment Officer, Ariel Investments; Brenda Chia, Founding Board Member & Co-Chair, Association of Asian American Investment Managers; and Meredith Jones, Investment Researcher and Author.