Sec. 4. Improving access for diverse-owned asset management firms
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By not later than December 31, 2022, and annually thereafter, each Federal institutional investor that uses the services of, or contracts with, an asset management firm to manage Federal investments shall prepare and submit a report to the Secretary on the usage of diverse-owned asset management firms by the Federal institutional investor. The report under subparagraph
(A)shall also include all subcontractor asset management firms of the Federal institutional investor. Each report described in paragraph
(1)shall include, with respect to any fund administered by the Federal institutional investor that uses the services of, or contracts with, an asset management firm— the amounts of assets in such fund that are managed by non-diverse-owned asset management firms and by diverse-owned asset management firms, as determined by the Secretary under paragraph (3), disaggregated by race, ethnicity, and gender; the challenges, if any, the Federal institutional investor faces in reporting on diverse-owned and non-diverse-owned asset management firms; the challenges the Federal institutional investor faces in selecting diverse-owned asset management firms (including through subcontractor asset management firms) to manage investments of sums in the fund administered by the Federal institutional investor; the actions taken during the reporting period, or planned to be taken, by the Federal institutional investor to alleviate barriers that limit participation of diverse-owned asset management firms; and the actions taken during the reporting period, or planned to be taken, by the Federal institutional investor to increase opportunities for diverse-owned asset management firms to compete for contracts. The Secretary shall evaluate industry benchmarks to determine the threshold or other requirements necessary for an asset management firm to qualify as diverse-owned. The Secretary shall make each report submitted under paragraph
(1)publicly available. It is the sense of Congress that the Advisory Council on Employee Welfare and Pension Benefit Plans (commonly known as the ERISA Advisory Council ) routinely consider barriers to the usage of diverse-owned asset management firms among covered private sector plans, and methods to overcome such barriers. The Secretary shall— conduct a survey of the best practices in fund asset management with respect to increasing the utilization and capacity of diverse-owned asset management firms; and prepare and submit a report to Congress not less often than every 3 years, or more frequently as the Secretary considers to be appropriate. The Secretary shall survey a sample of public and private-sector pension plans subject to the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ) and other retirement funds that are engaged in (or looking to engage in) strategies to improve access to, and representation by, diverse-owned asset management firms. The Secretary shall make publicly available a report to Congress on the best practices of pension funds and other retirement funds with respect to implementing strategies to improve access to diverse-owned asset management firms. The report shall include— the challenges pension funds and other retirement funds may face in adopting or executing strategies to engage more with diverse-owned asset management firms as the primary institutional fund manager or as subcontractor asset management firms, including women- and minority-owned asset management firms; and an identification of the strategies adopted to implement programs.
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Sec. 4
Improving access for diverse-owned asset management firms
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