Pool Hopping: ERISA-Regulated Defined Benefit Plans May Have More Private Investing Flexibility Than They Realize

This paper discusses the qualified professional asset manager (QPAM) exemption, an established, ERISA-approved exemption related to private investing programs. This exemption is currently under regulatory review by the US Department of Labor (DOL). Plans wishing to undertake a QPAM transaction should consult with their ERISA counsel. Many plan sponsors that have a private investment (PI) […]

November 2023

No Surprises: Managing Risk in Family Portfolios

Creating portfolios that are customized to a family’s unique investment goals and risk tolerance requires ingenuity and flexible thinking. However, the execution of risk management should be more systematic. It depends on setting clear frameworks to monitor risks, consistently implementing those frameworks to ensure one’s understanding of the portfolio remains current, and regularly communicating the […]

October 2023

Stewardship: a Long-Term Strategy

Lucrecia Tam, a senior investment director at Cambridge Associates, discusses the importance of stewardship with Andrew Holt, Deputy Editor at portfolio institutional.   What for you are the key component parts of effective stewardship? The way we approach stewardship is to evaluate the culture that is set in the context of long-term ownership – our […]

October 2023

SEC Adopts Reforms Aimed at Enhancing Private Investment Transparency and Investor Protection

On August 23, 2023, the U.S. Securities and Exchange Commission adopted the most extensive reforms for the private investment industry since the Dodd-Frank Act of 2010. The reforms include many noteworthy aspects that we, and the industry, are still reviewing closely. Below are a few key changes: Fee & Expense Transparency. The new rules require […]

August 2023

Private Direct Lending or Public BDCs? Guidance for Pension Plan Sponsors

Private credit has become a popular asset class among pension plan sponsors seeking yield enhancement over their public fixed income allocations. The non-bank finance market has flourished since the Global Financial Crisis due to a more restrictive bank regulatory environment, resulting in reduced bank lending activity, and a wide range of private credit opportunities are […]

July 2023

A New Approach: How ERISA-Covered US Pension Plans Can Save on PBGC Premiums

Saving on Pension Benefit Guaranty Corporation (PBGC) premiums has long been at the forefront of many pension risk management decisions. When interest rates were near historic lows during 2019 and 2020, many single-employer plan sponsors changed their methodology for calculating these premiums to reduce their tax obligation to the federal government. Although it appeared like […]

July 2023

Simplifying Family Investment Portfolios

For families of significant wealth, complexity is a natural byproduct of a well-managed portfolio. A dynamic portfolio can help address a number of investment challenges that families of wealth face, including varying multigenerational preferences, unique tax considerations, domicile requirements, and specific beneficiary needs. Yet there is also such a thing as overcomplexity, which can waste […]

June 2023

Endowment Spending Amid Record Inflation

Inflation is having a moment. After laying low and playing a minor role in institutional financial decisions for decades, inflation has soared, dominating headlines and raising expectations for future costs. In addition to its impact on financial markets and investment portfolios, inflation increases the costs of delivering the nonprofit mission and makes it more challenging […]

May 2023