March 16, 2020—Amid a turbulent global and market environment, we remain committed to our clients and colleagues.
In a changing healthcare landscape, we understand the unique challenges and complexities facing healthcare systems today.
For more than 35 years, we have worked with healthcare-related institutions to build and manage investment portfolios customized to their needs.
We recognize that healthcare systems have unique objectives, constraints, and operating considerations that require them to invest their asset pools in a way that is significantly different from other institutional investors. In order to build a successful investment program, it is critical to fully understand the enterprise and how its varied pools—including endowments, pensions, insurance pools, working capital and board-designated funds—work together to support it.
We start every relationship with a complete enterprise review to assess what drives the institution and understand the system’s ability to assume equity and illiquidity risk within each capital pool and the overall investment portfolio. We then work on each client’s behalf to build and manage a customized portfolio that is designed to best meet their objectives.
Our specialized expertise includes diverse areas of investing such as private investments and impact investing. Combined with our knowledge of enterprise issues specific to healthcare organizations, we are able to help create investment programs customized to meet the specific values and objectives of each healthcare organization we serve.
Our Latest Insights
Pensions face critical investment and management challenges as COVID-19 impacts capital markets. For single-employer plans, we have found that liquidity, rebalancing, implementation and communication are key issues to keep in mind.
Investors are now grappling with the impact of the COVID-19 pandemic, which has sent global equities into bear market territory as the threat of a severe recession weighs on the global economy. These are challenging, uncertain times for equity markets. As investors work to ensure their portfolios will be robust through this downturn and are positioned for the eventual rebound, we offer a review of the critical benefits of global equity diversification and examine considerations related to home bias, rebalancing strategies, and currency impacts.
Nominal high-quality sovereign bond yields throughout developed markets have plummeted toward zero, increasing the likelihood that most developed markets may soon need to contend with negative yields, and leading investors to question whether high-quality sovereign bonds are still the best form of insurance. In light of these developments, we examine the historical safe-haven characteristics of high-quality sovereign bonds and assesses whether they remain a viable safe-haven asset.
In periods of market stress, it can be difficult to rebalance, much less overweight risky assets like equities. In this paper, we review our approach using multiple lenses: magnitude and duration of drawdowns relative to history, cheapness of valuations, and presence of pre-conditions for markets to begin their ascent. Such an approach can help investors tune out the emotion and dial in on the hard data and most probable outcomes even in the face of great uncertainty. While opportunities are developing across many markets, investors should hold off on broad overweights to risky assets at this time.
April 8, 2020—The COVID-19 pandemic has inflicted significant duress upon the operational and financial situations of nonprofit healthcare systems. An immediate response was necessary to escalate staffing, spending, and resources to provide emergency treatment to those affected by this highly contagious outbreak.
Healthcare systems can benefit greatly by maximizing equity orientation and illiquidity while prudently managing risk. But a typical healthcare system may have investment assets in multiple accounts, due to mergers & acquisitions (M&A), capital projects, and fundraising, as well as operational and pension benefit growth. Investments can be curated—identified, categorized, and clustered—for optimal efficiency and cost savings. Similarly, defined benefit pension plans can be restructured to better manage pension risk and administration. This paper discusses strategies to simplify and streamline investment structures to make complexity more manageable for investment and financial executives.