As charity, endowment, and pension trustees become more sophisticated in their investment strategies, they are growing more demanding than ever of asset managers and consultants, says research firm Cerulli Associates in its July report focusing on global trends and data.
These trustees are outpacing their life insurance industry counterparts in their demand for alternative investments, according to Barbara Wall, editor of The Cerulli Edge–Global Edition.
According to the July issue of The Cerulli Edge–Global Edition, charity and endowment trustees are now more likely to put their money in absolute-return funds (more commonly known as hedge funds) as they seek alternatives to low-yielding fixed-income and money market funds. Absolute-return funds may include investments such as short sales, futures, options, derivatives, arbitrage, leverage, and unconventional assets.
"It may come as a surprise that charities are at the cutting edge, even beating the life industry to multi-asset strategies," Wall said in a release. "In fact, many charities are harder task managers than life companies, demanding (but not always getting) absolute returns on an annual basis."
Cerulli Associates is an asset management research firm based in Boston, London, and Singapore. In addition to its Global Edition, The Cerulli Edge group of publications includes editions covering the Asia-Pacific region, Europe, managed accounts, advisors, and retirement.
