7. The investment management industry is far more homogeneous than the clients it serves, ironically for an industry that worships “diversification” as the one true free lunch.  Only 10% of mutual fund AUM and 3% of hedge fund AUM are managed by women, and a similarly small percentage is managed by traditionally underrepresented minorities.  This, despite the fact that funds run by women outperform.  That outperformance equals the cost of money holder bias.  Distributors (e.g., Registered Investment Advisors) also are disproportionately white men of middle age and older.  The bias has two other main negative effects.  First, it limits investors’ understanding of the world.  America alone will be a majority minority country by 2040, and inevitably consumption and behavior patterns will evolve accordingly.  Second, according to Carol Morley, CEO of the Imprint Group:  “It is hard to attract top talent if firms are looking at a small slice of the population and their immediate peer group.”