IA Strategy: New York Common Retirement Fund Delves into the Complexities of Investing in Private Debt

Reginald D. Tucker, senior investment officer of opportunistic investments and absolute return strategies at the New York Common Retirement Fund (NYCRF) spoke with IA about the fund’s allocation to private debt, a fairly new asset class for the fund. Tucker gave details about the breakdown of the asset type in the fund’s opportunistic portfolio, the returns it …

Three LatAm PE Locations Primed For Growth: Market Pros

A difficult economic and political environment in Latin American, generally over the last three years, appears to be moderating, and pro-investment reforms in key markets in the region are bringing a more positive outlook among some private equity investors. Market observers caution, however, that the most promising private equity investment opportunities are in only three …

IA Strategy: Eastern Illinois University Foundation Stays Faithful to Active Management

This week, IA spoke with Jim Schnorf, one of seven investment professionals and two ex-officio members who make up the investment committee of the Eastern Illinois University Foundation (the Foundation), about the trend towards endowments and foundations making larger equity allocations in their portfolios, the value of hiring an active manager, and the Foundation’s considerable allocation …

Allianz Targets Middle of Barbell with Actively Managed Core Equity Portfolios

Allianz Global Investors’ “Best Styles” equities group has existed for 20 years, but has been seeing heightened institutional investor attention recently around its multi-factor management strategy for clients ranging from mega pension funds to insurance companies. The team differentiates itself from other managers with comprehensive risk management that it claims produces stable returns, rather than …

bfinance Asset-Owner Survey Finds More Complex, Diverse Portfolios; Lower AM fees

Over the last three years, extending a trend that began in the wake of the financial crisis, the average institutional investor has transitioned its investment portfolio to one that is not only more complex and diverse, but which features a greater proportion of illiquid investments, according to the findings of the 2018 Global Asset Owner …

Consultants Grapple with Private Debt Benchmarking

Private credit, a relatively new asset class, offers investors a large, multi-asset class that encompasses a variety of niche strategies. While the term “private debt” is not well defined by the industry, “We estimate the size of the U.S. middle market at around $400 billion, and adding distressed would bring that number much higher,” said  Stephen …

IA Strategy: CIO of Saint Paul & Minnesota Foundations Reimagines Investment Structure  

Wei Huang, chief investment officer of the Saint Paul & Minnesota Foundations, knew changes had to be made when 15 months ago he took over the fund from Jack Pohl, who had been CIO for nearly 32 years. The almost 80-year-old foundation, with $1.5 billion in assets under management, was over-diversified and outdated, in Huang’s opinion. …

With Private Credit Strategy Benchmarks Proving Inapt, Researchers Say LLI May be Best Bet

Many consultants and investors face a conundrum when trying to formulate a performance benchmark for private credit.  There are a variety of product types within the asset class, making it hard to evaluate them all under one roof. Researchers also point to the evolving nature of the asset class, which includes a relatively small number of …

Plan Sponsors’ Downward Pressure on AM Fees May Come at a Cost

The much discussed push by institutional investors to reduce their asset management costs, which has taken hold in earnest since the financial crisis, is now bringing a new question to the fore: will lower fees lead to lower-quality asset management services and to the insolvency of asset managers, some of whom will be forced to …

Inadequate Deal Structures Said to be Slowing Pensions’ Entrée to Impact Investing

Impact investing has piqued the interest of many forward-thinking pension funds, as a way to contribute to positive environmental and social change while also reaping significant returns.  But a lack of appropriately structured and sized investment vehicles may be holding many of them back from doing so. “One reason why impact investing has not drawn more …