I 

118TH CONGRESS 

2D SESSION H. R. 10336 

To improve access for diverse-owned asset management firms, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 10, 2024 

Mrs. BEATTY introduced the following bill; which was referred to the Committee on Oversight and Accountability, and in addition to the Committees on Education and the Workforce, Financial Services, Transportation 

and Infrastructure, Armed Services, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To improve access for diverse-owned asset management 

firms, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Too Narrow to Succeed 

5 Act’’. 


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1 SEC. 2. PURPOSE. 

2 The purpose of this Act is to improve access for di3 verse-owned, including women- and minority-owned, asset 

4 management firms by— 

5 (1) increasing transparency regarding the asset 

6 management firm selection processes of Federal in7 stitutional investors; 

8 (2) identifying common and potential barriers 

9 that limit business opportunities for diverse-owned 

10 asset management firms and developing strategies to 

11 remove these barriers; and 

12 (3) enabling both public and private retirement 

13 funds to adopt broader and more inclusive selection 

14 processes to reduce systemic risk and maximize re15 turns, consistent with administrators’ fiduciary re16 sponsibilities. 

17 SEC. 3. DEFINITIONS. 

18 In this Act: 

19 (1) ASSET MANAGEMENT FIRM.—The term 

20 ‘‘asset management firm’’ means any investment 

21 firm that— 

22 (A) manages a portfolio of securities or 

23 other assets for a defined benefit plan or other 

24 institutional investor; or 

25 (B) offers investment options, such as mu26 tual, private equity, real estate, or other comVerDate Sep 11 2014 21:41 Jan 02, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H10336.IH H10336

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1 mingled funds, to participate in a defined con2 tribution or other comparable retirement plan. 

3 (2) DIVERSE-OWNED.—The term ‘‘diverse4 owned’’, when used with respect to an asset manage5 ment firm, means any threshold or other require6 ments determined appropriate by the Secretary 

7 under section 4(a)(3). 

8 (3) FEDERAL INSTITUTIONAL INVESTOR.—The 

9 term ‘‘Federal institutional investor’’ means each of 

10 the following: 

11 (A) The Federal Retirement Thrift Invest12 ment Board. 

13 (B) The entity that administers— 

14 (i) the funds of the Pension Benefit 

15 Guaranty Corporation established under 

16 section 4005 of the Employee Retirement 

17 Income Security Act of 1974 (29 U.S.C. 

18 1305); 

19 (ii) the funds of the National Railroad 

20 Retirement Investment Trust established 

21 under section 15(j) of the Railroad Retire22 ment Act of 1974 (45 U.S.C. 231n(j)); 

23 (iii) the funds of the Federal Reserve 

24 System Retirement Plan; 


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1 (iv) the funds of the Federal Reserve 

2 System Thrift Plan; 

3 (v) the funds of the Tennessee Valley 

4 Authority Retirement System; 

5 (vi) the funds of the Tennessee Valley 

6 Authority Retirement System Savings and 

7 Deferral Retirement Plan; 

8 (vii) the funds of the Army and Air 

9 Force Exchange Service Retirement Sys10 tem; 

11 (viii) the funds of the Navy Exchange 

12 Service Command Retirement Plan; or 

13 (ix) the endowment funds of the 

14 Smithsonian Institution. 

15 (C) Any other Federal entity that admin16 isters a fund— 

17 (i) with more than $1,000,000,000 in 

18 assets invested for which the entity uses 

19 the services of, or contracts with, an asset 

20 management firm; and 

21 (ii) that the Secretary determines is 

22 similar to the Thrift Savings Fund or a 

23 fund described in subparagraph (B). 

24 (4) FEDERAL INVESTMENTS.—The term ‘‘Fed25 eral investments’’ means investments of sums in a 


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1 fund administered by a Federal institutional inves2 tor. 

3 (5) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Labor. 

5 (6) SUBCONTRACTOR ASSET MANAGEMENT

6 FIRM.—The term ‘‘subcontractor asset management 

7 firm’’ means an asset management firm that— 

8 (A) enters into a contract (including a sub9 contract) with an asset management firm that 

10 is the primary manager of Federal investments, 

11 through the use of services or by contract, for 

12 a Federal institutional investor; and 

13 (B) under the terms of the contract, man14 ages Federal investments of the Federal institu15 tional investor. 

16 SEC. 4. IMPROVING ACCESS FOR DIVERSE-OWNED ASSET 

17 MANAGEMENT FIRMS. 

18 (a) ANNUAL REPORTS BY FEDERAL INSTITUTIONAL

19 INVESTORS THAT INVEST IN EXTERNALLY MANAGED AS20 SETS.— 

21 (1) ANNUAL REPORTS.— 

22 (A) REPORTS REQUIRED.—By not later 

23 than 1 year after the date of enactment of this 

24 Act, and annually thereafter, each Federal in25 stitutional investor that uses the services of, or 


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1 contracts with, an asset management firm to 

2 manage Federal investments shall prepare and 

3 submit a report to the Secretary on the usage 

4 of diverse-owned asset management firms by 

5 the Federal institutional investor. 

6 (B) INCLUSION OF SUBCONTRACTOR ASSET

7 MANAGEMENT FIRMS.—The report under sub8 paragraph (A) shall also include all subcon9 tractor asset management firms of the Federal 

10 institutional investor. 

11 (2) CONTENT OF REPORTS.—Each report de12 scribed in paragraph (1) shall include, with respect 

13 to any fund administered by the Federal institu14 tional investor that uses the services of, or contracts 

15 with, an asset management firm— 

16 (A) the amounts of assets in such fund 

17 that are managed by non-diverse-owned asset 

18 management firms and by diverse-owned asset 

19 management firms, as determined by the Sec20 retary under paragraph (3), disaggregated by 

21 race, ethnicity, and gender; 

22 (B) the challenges, if any, the Federal in23 stitutional investor faces in reporting on di24 verse-owned and non-diverse-owned asset man25 agement firms; 


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1 (C) the challenges the Federal institutional 

2 investor faces in selecting diverse-owned asset 

3 management firms (including through subcon4 tractor asset management firms) to manage in5 vestments of sums in the fund administered by 

6 the Federal institutional investor; 

7 (D) the actions taken during the reporting 

8 period, or planned to be taken, by the Federal 

9 institutional investor to alleviate barriers that 

10 limit participation of diverse-owned asset man11 agement firms; and 

12 (E) the actions taken during the reporting 

13 period, or planned to be taken, by the Federal 

14 institutional investor to increase opportunities 

15 for diverse-owned asset management firms to 

16 compete for contracts. 

17 (3) DIVERSE-OWNED.—The Secretary shall 

18 evaluate industry benchmarks to determine the 

19 threshold or other requirements necessary for an 

20 asset management firm to qualify as diverse-owned. 

21 (4) PUBLIC AVAILABILITY.—The Secretary 

22 shall make each report submitted under paragraph 

23 (1) publicly available. 

24 (b) SENSE OF CONGRESS RELATING TO DIVERSE25 OWNED ASSET MANAGEMENT FIRMS AND COVERED PRIVerDate Sep 11 2014 21:41 Jan 02, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H10336.IH H10336

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1 VATE SECTOR PLANS.—It is the sense of Congress that 

2 the Advisory Council on Employee Welfare and Pension 

3 Benefit Plans (commonly known as the ‘‘ERISA Advisory 

4 Council’’) routinely consider barriers to the usage of di5 verse-owned asset management firms among covered pri6 vate sector plans, and methods to overcome such barriers. 

7 (c) SURVEY OF FUND MANAGEMENT BEST PRAC8 TICES.— 

9 (1) IN GENERAL.—The Secretary shall— 

10 (A) conduct a survey of the best practices 

11 in fund asset management with respect to in12 creasing the utilization and capacity of diverse13 owned asset management firms; and 

14 (B) prepare and submit a report to Con15 gress not less often than every 3 years, or more 

16 frequently as the Secretary considers to be ap17 propriate. 

18 (2) REQUIREMENTS OF SURVEY.—The Sec19 retary shall survey a sample of public and private20 sector pension plans subject to the Employee Retire21 ment Income Security Act of 1974 (29 U.S.C. 1001 

22 et seq.) and other retirement funds that are engaged 

23 in (or looking to engage in) strategies to improve ac24 cess to, and representation by, diverse-owned asset 

25 management firms. 


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1 (3) REPORT.—The Secretary shall make pub2 licly available a report to Congress on the best prac3 tices of pension funds and other retirement funds 

4 with respect to implementing strategies to improve 

5 access to diverse-owned asset management firms. 

6 The report shall include— 

7 (A) the challenges pension funds and other 

8 retirement funds may face in adopting or exe9 cuting strategies to engage more with diverse10 owned asset management firms as the primary 

11 institutional fund manager or as subcontractor 

12 asset management firms, including women- and 

13 minority-owned asset management firms; and 

14 (B) an identification of the strategies 

15 adopted to implement programs. 

Æ 


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