In the year since Harvey Weinstein's alleged sexual assaults came to light, institutional investors have begun to ask external money managers about their firms' histories on sexual misconduct.
The nascent trend to ask money managers to disclose sexual harassment and assault settlements was sparked by the #MeToo movement, which reignited last October after women all over the world shared their stories of sexual abuse in response to the Weinstein revelations, industry observers said.
"The financial industry hasn't found its Harvey Weinstein yet, but there's no reason why the money management industry should be exempt from sexual misconduct incidents, especially because it's such a macho industry," said Andrew Borowiec, executive director of the Investment Management Due Diligence Association, New York.
The $358.9 billion California Public Employees' Retirement System and University of Texas/Texas A&M Investment Management Co., which manages $44.9 billion in endowment and operating funds, are among the first asset owners to incorporate specific requests for sexual misconduct information in their money manager due diligence process.