Public pension funds that aren't using enough — or any — black-owned money management firms are being targeted by well-known activist Jesse Jackson, founder and president of the Rainbow/PUSH Coalition.
A recent survey by the New York-based Wall Street Project, a unit of the Rainbow/PUSH Coalition, looked at 74 public funds in 20 states with the highest populations of African-Americans.
The survey found that 49 of those plans — including funds in South Carolina, New Jersey, Mississippi, Ohio and Tennessee — weren't using any black-owned money managers. According to a report on the survey, 32% of South Carolina's population is either black or Hispanic; New Jersey, 27%; Mississippi, 38%; Ohio, 14%; and Tennessee, 19%. The Wall Street Project serves as an advocacy group for minority-owned financial services firms.
"These are states with the highest black populations, and yet the state pension plans are closing the door on black-owned firms," said Mr. Jackson in a news release issued Jan. 13 by the Wall Street Project. "This is nothing short of economic apartheid." Mr. Jackson did not return repeated calls for further comment.
New York, Texas, Florida, California, Georgia, Illinois, North Carolina, Virginia, Pennsylvania, Missouri, Indiana, Alabama, Louisiana, Michigan and Maryland all have at least one black-owned money manager.