- Diverse Manager REPORT -
Beliefs inform behavior
Crewcial’s search for talented investment managers and internal staff is informed by the belief that variant perception is the secret to investment success and that intellectual capital is abundant and evenly distributed across global populations.
Because of these beliefs, we act, every day, to nurture an inclusive ecosystem for allocating inspired capital to investors who can leverage their unique perspectives, rooted in differentiated life experiences, to build exceptional portfolios that support our clients' missions.
We are proud to share the latest insights and learnings from our decade-long journey raising diversity, equity, and inclusion in the financial services industry.
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We are only getting started!
Let's change the world together.
- MISSION RECAP -
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They give us those nice bright colors; they give us the greens of summers; makes you think all the world's a sunny day. – “Kodachrome,” Paul Simon
Few things are as seemingly simple yet subtly complex as taking a photo. It requires perspective, knowing when to change the lens to better catch certain images, and controlling where the light converges to bring the image into focus. But capturing the best, most representative visualization of each individual requires a deep understanding of the subject. If one’s basic aesthetic is tied to a more or less homogenized frame of reference, certain essentials will escape you. Said another way, the way you are used to seeing determines the way you see.
In the early 1950s, Kodak started using a model on staff, Shirley Page, from which to develop reference photos used by technicians to balance exposure, colors, and hues—these were used wherever Kodak printers were used, which is to say, almost everywhere. While subsequent, similar-looking women were employed, starting from the first example, these so called “Shirley cards” predominantly showcased paler, white-skinned women set against a darker, prosaic background to see how their skin fared in high-contrast light. This benchmark defined whether or not the colors and exposure of a photograph were “correct” in development.
Color film works by using layers of chemicals stacked on top of each other that are sensitive to different colors; a combination of various solutions is then used to develop this film after exposure to light. This creates the “color balance.” However, based on the reference cards, chemicals that would bring out more brown, red, or dark tones were generally excluded from the mix. This was due to the market for cameras and film at the time being geared almost exclusively towards white-skinned people.
This started to become more of an issue based on two unlikely sources in the 1970s: furniture companies and chocolate makers. They were frustrated that Kodak could not capture the nuanced shading of their products. Kodak dutifully upgraded their film to the standard called for by these items, but did not address the elephant in the room. As time went on and diversity slowly became more present in mainstream media and television, the still-present shortcomings of this process became less easy to ignore. However, it was not until the 1990s that the references were expanded to include multi-racial Shirley cards featuring people of darker skin tones and more diverse heritage.
At Crewcial, our unique strength is precisely what this issue’s cover image exposes, a history of inclusion. The rich diversity of our team widens the scope of our research, allowing us to gain valuable insights less calibrated lenses can’t see. For clients and others who may lack a wider range of differentiated backgrounds, we’ve got your blind spots covered. This is who we are as a firm: one group of many different members with a common purpose contributing their individual strengths to a common goal. In partnership with our clients, whose missions are united by a fundamental drive towards making a difference in their communities, we exist to support philanthropic capital making an impact so that it can continue to do so in perpetuity, as we see ourselves and our communities in these initiatives. By doing so, we hope each new picture developed will reflect more and more of the color and clarity that make our world so rich with possibilities.
Because of these beliefs, we act, every day, to nurture an inclusive ecosystem for allocating inspired capital to investors who can leverage their unique perspectives, rooted in differentiated life experiences, to build exceptional portfolios able to deliver top-quartile performance for our clients.
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Crewcial Client Allocation to Diverse Managers is
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This shows our number of diverse manager meetings and allocations made each year. After hiring a dedicated professional in 2016, we saw a substantial increase in our sourcing efforts. This person broadened our networks by attending pitch events, participating in listening tours, and speaking at educational forums and conferences across the country. In addition to attracting talent, these efforts provided opportunities for advocacy to help eliminate barriers to entry.
During COVID, there was an increase in both the number of overall manager meetings as well as diverse manager meetings. This was made possible by the wider use of remote technology, which served as a substitute for travel and provided a platform for revisiting many managers on our radar that had not previously made it through our process. This arrangement was particularly advantageous for managers returning to the market or those with limited budgets for meeting institutional investors.
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This shows the changes in our asset allocation over time measured in dollars by asset class. Overall, the greatest number of opportunities consistently lies within private assets. Over the years, we have worked to increase our clients' exposure to this asset class by raising the allowable percentage of allocations and assisting clients with developing an investment policy in support of more robust private-assets programs. Over the years, especially among early adopters, we have helped build programs for many non-profits seeking to provide catalytic capital to this area in line with their mission and values.
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To ensure transparency in our data synthesis, it's crucial to understand our methodology for tracking geographic exposure. While many of our US equity managers invest both domestically and internationally, they are only classified as ethnically diverse if their businesses are based in the US. If a manager's business is located in their country of origin and they are the majority demographic of that country or region, they are not considered diverse by our criteria. For instance, a Japanese manager residing in Japan would not be considered a diverse manager according to our tracking methodology. However, such managers are still included in our overall manager count.
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