CalPERS, Progress Decisions Create Questions Heading Into 2020
An emerging manager-of-managers firm has announced it will close in mid-2020.
The emerging manager-of-managers space has seen a significant shakeup in the past three months with the elimination of roughly $3 billion in assets from the California Public Employees’ Retirement System, Attucks Asset Management’s acquisition of Capital Prospects and the decision by Progress Investment Management Company to close this year.
The loss of roughly $3 billion in assets dedicated to active equity emerging managers is going to sting even those managers not directly impacted by the decision.
Investment management firms considering launching non-U.S. equity strategies need to evaluate their own capabilities and resources and how they relate to an investor’s wants in the asset class, according to both asset allocators and investment managers in the space.
As more investment consultants have begun launching emerging and diverse manager research initiatives, the scrutiny surrounding their approaches and whether they’re actually ‘walking the walk’ only increases among those directly impacted by the success—or stagnation—of their efforts.
Investors considering emerging managers need to understand the risks involved, conduct an analysis on returns and be aware of how the proposed strategy fits into the portfolio, according to panelists at the CFA Society New York’s Emerging Manager Summit held on Dec. 6.
The New Jersey Joint Committee on Economic Justice and Equal Employment Opportunity held a hearing on Jan. 7.
