Title: Presented by Henry Cisneros
1EXPANDING INVESTMENT OPPORTUNITIES THROUGH
DIVERSITY
Presented by Henry Cisneros CalPERS and CalSTRS
Conference San Jose, California April 25, 2006
221st Century Themes
- Life at Hyperspeed
- Interconnected by Computers and Multi-media Tools
- Biotechnology Marvels
- Aging of Traditional Population
- Globalization
3Fundamental Demographic Shifts
4Population Distribution
Year Total White / Non-Latino Latino African American American Indian Asian-American
1995 262,820 193,566 26,936 31,598 1,931 8,788
2000 281,422 194,553 35,306 34,658 2,476 10,243
2020 E 324,926 207,145 55,156 44,735 3,207 19,589
2050 E 403,686 212,990 98,228 59,239 4,405 37,589
Source U.S. 2000 Census U.S. Census Bureau
Population Division, Population Projections of
the U.S., Total Population by Race, Hispanic
Origin, Nativity
5African-Americans
- 34.65 million
- 1990-2000 16 growth
6Growing Influence on U.S. Culture
- Fashion Trends
- Language and Culture
- Music
- Religion Philosophy
- Sports
7Profound Influence on U.S. Culture
National Icons
Oprah Winfrey
Bill Cosby
Shaquille ONeil
Cultural Pacesetters
Denzel Washington
Toni Morrison
Halle Berry
8Profound Influence on U.S. Culture
Athletic Heroes
Tiger Woods
Tim Duncan
Michael Vick
Ken Griffey
Classical Grace
Wynton Marsalis
James Earl Jones
Leontyne Price
Jessye Norman
9Profound Influence on U.S. Culture
Moral Philosophy
e
Cornel West
Public Leadership
Jesse Jackson
Colin Powell
Condoleezza Rice
Barack Obama
10Asian-Americans
- 10.2 million
- 1990-2000 41 growth
- Highest Median Household Income
11Growing Influence on U.S. Culture
- Cuisine
- Architecture
- Design Aesthetics
- Pacific Rim Commerce
- Literature, Religion and Philosophy
- Fashion
12Growing Influence on U.S. Culture
Arts and Literature
I.M. Pei
Maya Lin
Amy Tan
Deepak Chopra
Entertainment and Fashion
Yo Yo Ma
Vera Wang
Bruce Lee
Jackie Chan
13Growing Influence on U.S. Culture
Media and Business
Connie Chung
Ann Curry
Charles Wang
Sports
Michelle Kwan
Michael Chang
Kristi Yamaguchi
14Hispanic-Americans
- 35.3 million
- 1990-2000 58 growth
Source April 1998, Standard Poors DRI
15Increasing Influence on U.S. Culture
Music
Movies
16Increasing on U.S. Culture Influence
Sports
Arantxa Sanchez-Vicario
Alex Rodriguez
Sergio Garcia
Oscar de la Hoya
Literature
Gabriel Garcia Marquez
Isabel Allende
Sandra Cisneros
Carlos Fuentes
17Increasing Influence on U.S. Culture
Fashion
Paloma Picasso
Oscar de la Renta
Carolina Herrera
Public Leadership
Mel Martinez
Ken Salazar
Carlos Gutierrez
18California Population by Race / Ethnic
Distribution
Source Public Policy Institute of California
19Population Pyramids for Anglo and Hispanic Ethnic
Groups in Texas, 2000
Anglo
Hispanic
20Minority Populations Are Young
of population under 20
Source Market Segment Research Population
Report, Middle Series, 1996
21Minority Households Are Larger
- Whites Blacks Hispanics
- Household
- Size 2.58 2.75 3.54
Source 1998 Current Population Survey
22Over 249,000 --31-- come from Spanish-speaking
countries
Source U.S. Dept of Justice, Immigration and
Naturalization Service, Annual Report, Jan 99
23Over 194,000 --24-- come from Asian countries
Source U.S. Dept of Justice, Immigration and
Naturalization Service, Annual Report, Jan 99
24Source U.S. Dept of Justice, Immigration and
Naturalization Service, Annual Report, Jan 99
25Source U.S. Dept of Justice, Immigration and
Naturalization Service, Annual Report, Jan 99
26MythThe Minority Market Is Small and Hence
Is Not a Significant Factor for Business to
Consider.
27There Is Still a Significant Gap in the Rate of
Home Ownership
Home Ownership Rate
Source Department of Housing and Urban
Development Office of Policy Development
Research, US Housing Market Conditions, 4th
Quarter 2001
28Projected Owner Occupied Household Growth in
Millions 2000 - 2010
- African Asian/ Total
- Total American Hispanic Other Minority
- 10.9 m. 1.8 m. 2.2 m. 1.0 m. 5.0 m.
Source 1998 Current Population Survey
29Minorities Account for 41 of All New
Homeownership
Source Department of Housing and Urban
Development
30Top 10 Surnames of California Homebuyers
- Garcia Martinez
- Smith Lee
- Lopez Johnson
- Rodriguez Gonzales
- Hernandez Williams
Source American Demographics, June 1998
31MythIt Will Be a Long Time Before Minorities
Will Be a Viable Middle Class.
32Growth of the Middle Class
Total Households
African American Households
Hispanic Households
Asian Households
Middle Class Defined
1989 23,663 - 36,201 1999 33,001 - 52,174
Source U.S. Census Bureau
33Fact Minority Families Have More Workers Per
Household
Households with Three or More Workers, The
Middle Class - 5 County Area
Source Pepperdine University Institute for
Public Policy The Emerging Latino Middle Class
1997
34Americas Leadership Institutions Must Recognize
The Importance Of Diversity
35I. Generate Investment Returns
- Market Opportunities
- Minority driven Growth
- Key Industry Impacts
36- Consumer Goods
- food
- clothing
- children needs
- family staples
37- Transportation
- automotive sector
- airlines
38- Health Care and Personal Services
- pharmaceuticals
- medical services
- senior care
39- Housing and Accessories
- real estate
- homebuilding
- rentals
- furniture
- household appliances
40- Information and Entertainment
- telecommunications
- electronic products
- radio and television broadcasting
- live entertainment
41- Financial Services
- banking services
- investment products
- remittances
42Major Companies are Deciding as Policy and
Practice That They Will Creatively Address
Diversity
- It is a Growth Imperative
- Organizational Attitudes Must Reflect That
Recognition - Practices Procedures Must Support It
43Companies are Developing Appropriate Products and
Accessible Services
- Calibrate Products to the Market
- Refine the Message
- Locations Community Accessibility
44Companies are Staffing and Training for Diversity
- Bilingual Staffing
- Training and Orientation on Attitudes and
Procedures - Efforts at Cultural Understanding
- Entrepreneurial Outreach
45Companies are Communicating With Phases of Life
in Mind
- Refine and Target the Message
- Choose the Most Appropriate Communication Mediums
- Address Language
- Emphasize Aspirational Content
46Companies are Investing in Financial Education to
Create Economic Opportunity for the Long Run
- Educate Minorities About Financial Prerequisites
- Stress Credit Record Preparation
- Teach, Persuade, Explain
47Companies are Addressing the Special Needs of
Immigrants
- Basic Explanatory Materials
- Contrast to Systems in Home Countries
48Companies Recognize that the Time Frame Is
Immediate
- Performance Objectives
- Trends are Accelerating
49II. The Investment Sector Must Prepare the
Infrastructure of the Investment Business
50- 1. Direct rigorous analysis of trends,
industry sectors, and positioning
51- Staffing
- Pipeline from higher education
52- 3. Stable of Managers
- - Experience - based knowledge
- - Differentiated market penetration
- - New networks
53- 4. Institutional Transactions
- Support firms
54- 5. Industry Alliances
- - Economic research and documentation
- - National networks for action
55III. Build the Next American Consumer Base
- Financial Education
- Education and Training
- - Access to Higher Education
- Support Public Policies to Expand the Middle
Class - - Job Generation
- - Incomes
- - Healthcare
- Support Asset Accumulation Strategies
- - Homeownership
- - Investment initiatives
- - Entrepreneurship
56 Alternative Long Term Views of the Investment
Sectors Interests
57Invest Now and Build on that Platform Indefinitely
- - Enhanced Tax Returns
- - Reduced Costs of Dependence
- - Expanded Wealth Base
- - Powered by Breakthrough Industries
- - Driven by the Human and Economic Capital
of Emerging Populations