With our outsourcing option, our clients can be assured that the best possible investment decisions have been made on their behalf.
The investment landscape continues to grow more complex and volatile. For institutional investors with limited dedicated staff, investment committees have become increasingly concerned about their ability to oversee large pools of capital. As regulations evolve, many seek to carefully manage these pools to minimize the impact on their financial statements. At the same time, in this environment decisions must be both quick and well informed. In order to best meet their fiduciary obligation, many pensions and other institutional investors must engage a partner to provide day-to-day oversight and make informed investment recommendations or decisions on their behalf.
With our outsourcing option, we function as the outsourced CIO and/or investment office for the client. Working on either a discretionary or non-discretionary basis, we construct, implement, and monitor all aspects of the portfolio. Our approach is customized and offers flexibility that is not always present in other outsourcing solutions. We have provided outsourcing services for well over a decade and have a long-term track record of success.
Outsourcing is a natural evolution of our consulting practice. In fact, we have found that the more oversight responsibility that is delegated to us, the greater our clients’ satisfaction, as evidenced in independent third-party client surveys.
Multiple-Employer Plan Employing Liability Driven Investing Techniques
For a $1.3 billion multiple-employer ERISA plan, Cambridge Associates was hired in 2007 to
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.