Cambridge Associates

system and industry-leading non-marketable fund database to provide this large Middle Eastern sovereign wealth fund with a comprehensive overview of its portfolio. This is used both by the private equity department and by the organization's management, providing an unbiased and well-founded system that is used to measure the relative success of the program and to establish performance-related compensation levels.

develop a comprehensive plan for the formation of an alternative assets program covering private equity (broadly defined), hedge funds, and private real estate. Though the fund employs a highly sophisticated investment staff, the organization had not previously invested in these non-traditional asset categories and a multi-layered governance structure required that substantial energy be devoted to educating trustees and other stakeholders. The scope of our assignment included defining appropriate long-term exposure targets for the asset classes, evaluating the full range of investment opportunities available to the fund, designing an actionable program framework, and recommending a detailed implementation strategy. The consulting team and in-house investment staff worked in close coordination to respond to trustee concerns, resulting in the adoption of a significant policy allocation to alternatives and a roadmap for near-term investments.

Cambridge Associates advises the trustees on all investment-related tasks, including investment planning (investment objectives, asset allocation and manager selection), cash management, and portfolio monitoring (performance measurement reports and acts as the primary liaison to investment managers). Cambridge Associates meets regularly with the trustees in addition to the trusts’ lawyers, actuaries, custodians, and investment managers.

recommendations and reviews on new manager ideas. These reviews draw on Cambridge's databases containing years of comments and data regarding the manager and the mandate. The comments are brought up to date through dedicated meetings with the managers. The meetings also allow us to examine the managers' ability to handle large separate account mandates which include specific restrictions. The result is an independent, highly tailored and deep analysis that forms a second opinion to complement the client's own due diligence and serves as a valuable tool for senior management.

was asked to undertake an Investment Planning Review to educate the group on how elements of the successful endowment management model could be incorporated into its own portfolio. As the discussion regarding policies and objectives progressed, it became clear that the decision-making structure of the fund was likely to impede, and perhaps even prevent, implementation of changes both staff and trustees agreed were important. As such, as an extension of the original review, Cambridge Associates was asked to assess options for a new governance framework. After a series of one-on-one meetings with trustees and a careful evaluation of potential political ramifications, the formation of an Investment Committee was recommended. The Board subsequently agreed and a new committee was appointed soon after. In addition, Cambridge Associates was responsible for documenting investment policies and guidelines, as well as determining their target asset allocation.

revamp the investment oversight of five retirement pools. The pools had suffered significant negative performance in 2000-2002 and needed to be restructured to better manage risk and meet the liability streams of the various plans. Cambridge Associates provides proactive day-to-day oversight in support of a small in-house staff and an investment committee. The asset allocation and manager structure has changed to include more private equity and hedge funds (from 20% to 45% of the total portfolio), the traditional equity portfolios have been more broadly diversified, and the fixed income duration has been increased. We have employed a liability driven investment framework and strategies and conduct ongoing attribution and risk analyses.

review, Cambridge Associates has worked closely with the organization to establish investment objectives, set strategic asset allocation targets, and create an investment manager structure for traditional and alternative assets.

an alternative assets portfolio, Cambridge Associates proactively advises on $13 billion committed to non-marketable alternative assets. Commitments span all non-marketable asset classes including private equity, venture capital, and oil & gas. Cambridge Associates’ investment teams communicate daily with the investment staff, and have helped the retirement program develop relationships with top-tier managers. The retirement system has been a client since 1994 and has earned strong returns.