Trends
As U.S. professionally managed assets declined in 2022, Cerulli Associates’ latest report found a temporary trend reversal where institutional channel assets gained a slight edge over retail.
2023 was supposed to be a down year for foundations and endowments with a potentially recessionary environment, however, equity and bond returns came out in the green, thanks in part to strong fourth quarters, leaving investors and allocators with a more optimistic outlook for their portfolios entering 2024.
Regardless of whether inflation continues to slow or the global economy steers clear of a recession, endowments and foundations should not base portfolio construction on market timing but instead focus on longer-term areas of opportunity like private equity and international equities, according to one consulting firm.
Institutional investors have become increasingly attracted to opportunistic and special situations investments across the broad real estate and credit sectors due to interest rate hikes and capital market dislocation, which the industry finds will likely continue into 2024.
The consultant believes adding diverse-owned firms is not the only way nonprofits can achieve their DEI-related investment goals, and their consultants should assist them to evaluate several different approaches.
Artificial intelligence could be a boon for emerging or diverse-owned investment managers, though the trend carries some risks, according to the firm.
This article is the second part of a two-part series from Meketa Investment Group executives examining active allocation strategies tailored to today’s market.
This article is part one of a two-part series from Meketa Investment Group executives examining active allocation strategies tailored to today’s market.
Investors can find opportunities for growth with “resilient” portfolio companies in certain sub-sectors of private equity that can prove to be beneficial in an inflationary environment.
Institutions looking into the discretionary investment management should focus on whether outsourced cios are independent, objective and have the necessary market experience.