It’s time to stop leaving money on the table. The data agrees.

THE
BUSINESS CASE

And yet, only 1.4% of U.S.-based assets are managed by diverse -owned firms.

And women comprise
only 11% of fund managers in the US - A Decrease over the last two decades.

A 2018 McKinsey report confirmed that gender-diverse teams are 21% more likely to outperform in profitability relative to peers.

A 2023 analysis found investment teams in the top quartile of gender diversity outperformed those in the bottom quartile by 45 bps per annum.

The XX Edge compiles dozens of studies showing that women at investment tables reduce risk and improve returns.

Across thousands of Venture capitalists, ethnically homogenous VC teams had A lower average success rate (26.4%) compared to ethnically heterogenous VC teams (32.3%).

A 2020 analysis of 400 products across SEVERAL asset classes, including benchmark-relative returns, found “investment teams with diversity, in particular ethnic diversity, tend to generate better excess returns."

Women attend business school at rates similar to men, join financial services firms in entry level positions at rates higher than men,

Gender-diverse teams with between 33% and 67% women, manage just 16.9% of the $6.5 trillion in AUM examined.

98% of AUM is managed by teams without a single Black or Latinx woman. only $220 billion is managed by teams that include at least one Black or Latinx woman.

White managers make up 79% of all portfolio managers,
leaving only 21% non-white managers.

Collectively, White managers oversee $9.5 trillion, more than 4x the AUM managed by all non-White managers combined ($2.1 trillion).

Only 1.2% of total AUM, or $320 billion, is managed by teams with at least one-third Black or Latinx portfolio managers.

what our data says

In partnership with ExecuShe, we analyzed the gender and racial makeup of the 600 largest U.S. actively-managed public equity funds, representing $11.6 trillion in AUM.

what their data says

Countless studies, analyses, and reports show that significant gender and racial equity gaps exist across the investment industry, especially in fund management.

Across 2,600+ US active equity funds, mixed-gender funds with over 50% women outperformed all other teams (including all-male and all-female teams) and outperformed the benchmark by 38.9 bps per year.

Portfolio management teams that consist of only men control close to half of AUM.

Male portfolio managers on average allocate 5.37 times more AUM than female portfolio managers.

A 2020 analysis of 400 products across several asset classes, including benchmark-relative returns, found “investment teams with diversity, in particular ethnic diversity, tend to generate better excess returns."