Before COVID-19 most hospitals generated liquidity from their operating model. In our May 2020 survey of 27 hospital systems, we learned that COVID-19 has driven hospitals to search for liquidity from multiple sources, including, for some, the investment portfolio.
The CA Institute supports a community of prominent institutional investors. We provide our clients with access to a large network of institutional investors and more than 40 years of research and peer data, helping them to stay ahead of an ever-changing investment landscape.
We work with institutional investors to understand and deploy best practices in endowment governance, benchmarking, and supporting the institution overall. Our work is built upon years of research on governance, investment responsibilities and costs, performance drivers, spending policies and practices, and the impact investments have on the vital enterprises they support.
We meticulously research the composition of endowment and foundation portfolios, as well as their quarterly, annual, and most importantly, long-term performance. We study the composition of governing bodies, and how they make decisions. We stay ahead of evolving management models and help investors understand how implementation may impact resources, roles and responsibilities, and results. Our methodology considers a variety of factors including how endowments support their enterprises, financial sustainability, and enterprise risk and liquidity needs. In addition to annual longitudinal studies, we also develop quick studies of current topics, such as manager concentration, spending policy adjustments, and endowment fees. This comprehensive research, combined with in-depth analysis and insights, informs our customized approach to portfolio management and helps us to meet our clients’ unique needs.
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The “secret sauce” to long-term investment success is, in most cases, the governance that guides and oversees the investment program. In this series, we discuss the roles and responsibilities of governance; highlight the steps to build a diverse and collaborative committee, and outline the culture of a well-functioning committee.
The current health crisis is creating extraordinary financial disruptions for nonprofit enterprises, leading stakeholders to ask if the endowment can come to the rescue of revenue shortfalls and often growing costs. How should an institution evaluate this, and what are the long-term implications of boosting spending beyond policy levels? First, we consider whether it is […]
Implementing sustainable and impact investing (SII) themes in investment portfolios can seem complex, leaving many investors new to SII wondering how to begin. This paper provides insight into building resilient portfolios that will contribute to and thrive in a more sustainable and equitable future.
Diversity is not just about gender or ethnicity—it is about having different perspectives, different points of reference, and different experiences. Homogeneous investment teams are more susceptible to groupthink, missing out on unknown opportunities, and being blind to some risks. Investors should consider diversity in the investment decision-making process, as we expect a diversity of thought and talent will lead to better investment outcomes than a process that ignores this important issue.
We advise extreme caution in using derivatives to protect portfolios from sharp equity drawdowns. We recommend that investors look to asset allocation to defend against equity risk before buying puts. For those investors who must pursue a tail-risk hedge, we provide a list of potential pitfalls and solutions, in the form of a case study.
The importance of digitisation has grown during the pandemic, as people have relied more on digital platforms, video streaming, and cloud storage. Investment across the digital infrastructure value chain continues to rise in response, and should increasingly be a priority for real asset investors.