Although OCIO has become a buzzword across the broad investment community, many defined benefit plan sponsors have questions about how an OCIO affects a pension plan sponsor’s role as fiduciary and which elements are key to a successful OCIO relationship. Here, we answer 7 common plan sponsor questions on outsourcing.
As one of the earliest investors in private equity, we have deep and proven experience sourcing best-in-class investment opportunities and managing private equity programs that meet our clients’ investment objectives.
Private equity has come a long way since the early days of leveraged buyouts. Today, the private equity universe spans numerous strategies with varying levels of risk and highly dispersed returns across a vast and ever-evolving universe of opportunities.
The complexity and vastness of this opportunity set—and the importance of finding and investing with the small universe of managers who can deliver outperformance—requires extensive resources and specialized expertise. Robust knowledge of the private equity landscape and deep global networks, built over 40 years of investing in this asset class, provide us with a natural pipeline of new manager ideas as individuals spin out of their prior firms to set up their own shops. We have also often been able to use our market presence and scale to negotiate more favorable fees and terms for our clients.
In this edition of VantagePoint, we explore the historical drivers of the value risk premium to determine if there have been any fundamental changes since 2007, the start of the global financial crisis, and to understand conditions that must be present for a sustained period of value outperformance.
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Investors are increasingly pursuing climate change–related agendas for both better investment outcomes and alignment with their stakeholders’ beliefs. This paper provides a high-level overview of the net-zero investing topic and considers practical implementation options for investors.
No, not yet, as just over 10% of last year’s performance was realized.
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.
No. While the Federal Reserve’s discussion of tapering asset purchases signals a shift toward tighter monetary policy, both the Fed and markets learned valuable lessons from the 2013 Taper Tantrum; the impact on bond yields should be limited.
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.
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.