Bill Overview
Title: Too Narrow to Succeed Act
Description: This bill requires federal institutional investors to report on their use of diverse-owned asset management firms. Additionally, the Department of Labor must conduct a survey of public- and private-sector pension plans regarding best practices for increasing the utilization and capacity of diverse-owned asset management firms.
Sponsors: Sen. Kaine, Tim [D-VA]
Target Audience
Population: Individuals employed or invested with diverse-owned asset management firms and pension plan beneficiaries
Estimated Size: 500000
- Federal institutional investors including government-linked investment funds and possibly entities like pension funds or sovereign wealth funds will need to report on their engagement with diverse-owned asset management firms.
- Employees and stakeholders of diverse-owned asset management firms will be impacted, as greater scrutiny and reporting may influence investment patterns or practices.
- There may be an indirect impact on employees and retirees who have pension plans managed by firms engaging diverse-owned asset managers, as it could affect return strategies or the availability of diverse managers.
Reasoning
- The policy primarily impacts diverse-owned asset management firms and entities involved with pension plans. This includes managers, employees, and potentially beneficiaries of such plans.
- Since the policy involves reporting and surveys, the immediate effects may manifest in operational changes for asset management firms, while pension plan beneficiaries might experience indirect impacts over time.
- Wellbeing impacts could emerge from enhanced career opportunities or operational burdens due to increased reporting requirements.
- The policy's budget constraints limit large-scale direct interventions, suggesting modest changes rather than transformative ones.
- Considering diverse social, economic, and geographic settings is important to capture a comprehensive view of policy impact.
Simulated Interviews
Pension Fund Manager (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I see this policy as an opportunity to broaden our engagement with diverse firms.
- Initially, it may require more effort to identify and report on these firms, but long-term insights could be beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Employee at a diverse-owned asset management firm (Chicago, IL)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The policy could be a push towards greater recognition of firms like ours.
- I'm hopeful it will improve our firm's visibility and open new doors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Graduate Student studying Finance (Dallas, TX)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This could enhance career prospects for someone like me who's looking to enter the industry.
- I might actually get a chance to work with firms that prioritize diversity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Police Officer (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- I'm not directly involved, but if it leads to better fund management, I'm for it.
- Pension stability is crucial, and if diversity helps, then it's beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Financial Consultant (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- Compliance with the new regulations could mean more work initially, but it might drive positive market changes.
- Uncertain how immediate the benefits will be.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Owner of a small asset management firm (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- Policies like this could genuinely support firms like mine, providing more opportunities.
- Implementation and follow-through remain to be seen.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Pension Plan Beneficiary (Denver, CO)
Age: 40 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I wish to see any effects materialize directly, but it's hard to say now.
- If the policy results in a more stable pension fund, I'm supportive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Data Analyst with a bank (Atlanta, GA)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Policy analysis might offer deeper insights into diversity impacts.
- Potential for enlightening findings is exciting, though challenging during implementation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Tech Entrepreneur and Investor (San Francisco, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This aligns with my values and might foster an investment climate that supports diverse voices.
- I hope to see a ripple effect within the tech investment space.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Policy Maker in Financial Regulation (Washington, DC)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- This policy is a step in the right direction, though success requires thorough follow-up and evaluation.
- I'm optimistic about fostering positive market changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $3000000 (Low: $2000000, High: $4000000)
Year 2: $2500000 (Low: $1500000, High: $3500000)
Year 3: $2000000 (Low: $1000000, High: $3000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The setup costs for surveys and reporting systems appear significant in the initial years, but ongoing costs should decrease over time.
- While direct economic impacts might be limited, the encouragement of diversity in asset management could foster long-term financial industry innovations and inclusivity.
- Stakeholders and federal institutions need clear guidance to minimize implementation hurdles and ensure compliance with minimal disruption.