Is the 60/40 model of investing dead? What does that portend for asset allocation from the CIO suite of the endowment office to the mass affluent, as this latter camp finds greater access via the democratization of financial product offerings. Why must education and transparency be an integral part of this mix?
For decades, financial planners and asset allocators crafted portfolios composed of 60 percent stocks and 40 percent bonds or other fixed income products—this was the foundation of investing for years. The thinking was these “well-balanced portfolios” could withstand headwinds from the markets providing above-market, risk-adjusted returns.
But, over the last two decades with bear markets and near-zero interest rates, the popularity of such portfolios has diminished. And in recent months with inflation at record levels, further diversifying portfolios has become even more important.
“They [investors] want a fiduciary mindset and sustainable execution that thinks about the importance of that double bottom line; elusive in the short-term, but more sharply focused through the lens of long-term investment. Beneficiaries will also want and need broad-based access to the private markets, which have become the undisputed leader in capital formation and value creation,” wrote Bill Kelly on the CAIA website.
As CEO of the Chartered Alternative Investment Analyst Association, Bill Kelly has been front and center of the transformation of the investments industry and the growth of alternative investment products and platforms.
“These same investors equally want to be more actively engaged across ever-broadening beneficiary expectations and outcomes, as the mindset shifts toward socially centered outcomes. The stakes are high as we move from products to solutions that are more values attentive and will need to go well beyond the simple action of weaponizing a proxy vote in the public market arena,” he observed in the same article.
Democratization of finance from blockchain and crypto products also has played a big role. The complete effects of this movement is yet to be seen; but blockchain is here to stay. Kelly is a strong advocate of education and transparency in this new paradigm that will benefit all investors; one that is called “operational alpha.”
Join us for a well-rounded discussion of the new shifts in alternative investments with CAIA CEO Bill Kelly.
Participants must register by Noon on December 7th to receive details on joining the discussion. The Zoom link will be sent out 24 hours before the event.
Please note that no refunds will be issued.
President & CEO of the CAIA Association
William (Bill) J. Kelly, CAIA is the President & CEO of the CAIA Association. Bill has been a frequent industry speaker, writer, and commentator on alternative investment topics around the world since taking the leadership role at the CAIA Association in January, 2014. Previously, Bill was the CEO of Boston Partners and one of seven founding partners of the predecessor firm, Boston Partners Asset Management which, prior to a majority interest being sold to Robeco Group in Rotterdam in 2002, was an employee-owned firm. Bill’s career in the institutional asset management space spans over 30 years where he gained extensive managerial experience through successive CFO, COO and CEO roles. In addition to his current role, Bill is a tireless advocate for shareholder protection and investor education and is currently the Chairman and lead independent director for the Boston Partners Trust Company. He has previously served as an independent director and audit committee chair for ’40 Act Mutual Funds and other financial services firms. He is also currently an Advisory Board Member of the Certified Investment Fund Director Institute which strives to bring the highest levels of professionalism and governance to independent fund directors around the world. A member of the board of the CAIA Association, Bill also represents CAIA in similar capacities via their global partnerships with other associations and global regulators. Bill began his career as an accountant with PwC and is a designated Audit Committee Financial Expert in accordance with SEC rules. Follow Bill Kelly on Twitter @CAIA_BillKelly
Hemali Dassani, MBA 1999, is an experienced fundraiser and investor relations professional within the alternative investments space and is currently a placement agent and consultant to multiple Private Equity funds. Hemali was previously Director of Investor Relations for Argand Partners and Castle Harlan, middle market private equity funds. Hemali was also a Managing Director with Old City Investment Partners, a multi-family office dedicated to finding high quality investments for the firm’s clientele of family office investors. Ms. Dassani has an M.B.A. from the Harvard Business School and a B.Sc. in Industrial Engineering from Northwestern University. She was President of the Harvard Business School Club of Greater New York and currently sits on the Board of the Club. Ms. Dassani is a published author of “Marketing Alternative Investments: A Comprehensive Guide to Fundraising and Investor Relations for Private Equity and Hedge Funds” (https://www.amazon.com/Marketing-Alternative-Investments-Comprehensive-Fundraising/dp/1264627645). The book was released by McGraw Hill by October 18, 2022 and has been the #1 New Release in Private Equity and Venture ever since.
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