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NEPC Launches Investment Diversity Advisory Council

February 27, 2020

BOSTON--(BUSINESS WIRE)--NEPC, LLC one of the industry’s largest independent, research-driven investment consulting firms, today unveiled their Investment Diversity Advisory Council (IDAC), a program that will convene institutional investors to discuss measurable ways to promote diversity in their own organizations and in their investment decisions. 

The IDAC will create a forum for the nation’s largest institutional investors to discuss the academic, empirical and business cases that support diverse decision-making; best practices to promote diversity in finance; and data-driven strategies to track progress over time.

“There’s an abundance of evidence to show that investment programs benefit from the different perspectives and ideas that come from a diverse and inclusive workforce,” said Sam Austin, Partner, Chair of NEPC’s Diversity and Inclusion Board, and Co-Chair of the firm’s Diverse Manager Committee. “At NEPC, our goal is to be a clearinghouse for information and ideas on how to improve investment outcomes for our clients and we believe diversity is an important element in improving the sustainability of those outcomes. This open forum will allow us to engage with our clients directly in conversations that help all stakeholders - including our firm - expand our definitions of diversity and continually improve the measurement benchmarks we use to track our collective progress.”

This initiative is a continuation of NEPC’s challenge to the investment industry to embrace and prepare for the ever-changing landscape of investing. The research-driven investment consultant identified diversity and inclusion as one of the three new future fundamentals of investing that will be the largest drivers of future success. 

“I was pleased to see NEPC, our investment consultant, create yet another program to sharpen their focus on diversity in the investment industry,” said Sean Bill, Chief Investment Officer at Santa Clara Valley Transportation Authority. “We have a very diverse workforce and a Board of Pensions, so the Investment Diversity Advisory Council was something that immediately resonated with our leadership team. We’re looking forward to working with NEPC as we continue to make progress on diversity within our organization and industry.”

The formation of IDAC is also one of the ways that NEPC is meeting its goals outlined in their Diverse Managers Policy, which was formally announced in 2019. The key goal of this data-driven policy is to ensure that diverse managers represent 10% of managers on NEPC’s focused placement list by 2021. To achieve this goal, NEPC has committed to increasing the number of meetings with diverse firms by 10 percent in 2020 and to providing preliminary feedback within three months of initial contact. Acting as an educational resource to the institutional investor community is an essential component of increasing exposure for diverse managers.

NEPC’s Diverse Manager Committee will lead the sessions and act as an educational resource for investors at various stages of incorporating diversity and inclusion into their investment plans. Outside of the IDAC, the Committee’s primary purpose is to identify highly qualified diverse investment firms - those with significant1 ownership by women and/or underrepresented groups2- that can best fulfill the unique goals, risk parameters and financial objectives of NEPC’s clients.

The first IDAC forum was held on February 5, 2020, in Tempe, Arizona as a pilot for the broader initiative. Ten self-selected public funds clients joined NEPC facilitators for a workshop on how to best achieve short- and long-term goals for increasing diversity in boardrooms, vendor lists, workforces and investment manager selection processes. The next forum will be held at NEPC’s annual client conference on May 20 and 21, 2020 in Boston, Massachusetts.

“Diversity is a key focus area for our organization, which is why we’re thrilled to join the Investment Diversity Advisory Council’s initial workshop,” said Tom Tull, CIO of Employees Retirement System of Texas. “We look forward to working with NEPC in their development of initiatives, education, and a roadmap for increasing diversity in the workplace”

NEPC has over $32 billion of client assets invested with diverse firms and nearly 40 percent of the firm’s clients are currently utilizing diverse managers across public and private equities, hedge funds, private debt and private real estate. For more information on the Investment Diversity Advisory Council, contact NEPC’s Diverse Manager Committee here.

1 NEPC defines “diverse-owned” managers as those with an office in the United States and at least 50% ownership by diverse persons and “diverse-led” firms as U.S.-based firms with 33%-to-50% ownership by diverse persons.
2 NEPC defines diverse persons as women, African-Americans, Latino/Latina, Asian-Americans/Pacific Islanders, Native Americans, Alaskan Natives, Veterans and Disabled Persons.
 

About NEPC, LLC

NEPC is an independent investment consultant and private wealth advisor with more than 30 years’ experience creating research-based, bespoke investment portfolios that align to the goals of its clients and their constituencies. Combining a proprietary research team dedicated to the long-term challenges facing institutional and high-net investors, with our unique client-centric model, NEPC builds the investment portfolios defining the future of finance.

We service over 360 retained clients representing assets over $1 trillion from our offices in Boston, Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Portland and San Francisco with a forward-thinking approach to solving the most complex challenges facing the investment industry.

To learn more about NEPC, please visit https://www.nepc.com/

Contact:

Corey Law
nepc@fullyvested.com

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