1. Diversify with intention. Diversification is alive, well and doing its job … for those who practice it rigorously. In private equity, real estate, global equities and other asset classes/strategies it’s clear there are ample opportunities to diversify portfolios and manage risk in an environment in which some U.S. equities are viewed as richly valued and certain other assets, like commercial real estate - specifically office, are seen as vulnerable.
2. Invest with intention. Point #1: Active management is proving its worth in a world where expectations based on historical norms are less reliable. Point #2: The pursuit of alpha is not incompatible with sustainable investing, ESG, diverse managers and other forms of responsible investing.
3. Govern with intention. Governance is key to managing the potential volatility associated with uncertainty in the economy, markets, technology, and world geopolitics. Governing with intention is the guide star for decision-making across the spectrum: from the ongoing operations of investment committees and boards to managing emerging challenges like artificial intelligence (AI).
4. Adopt technology with intention. Governing with intention particularly applies to institutional policies concerning AI and its implementation. AI has applications from web content to empathetic robots to predicting stock market returns. It could disrupt the workforce or make people more productive and content. Understanding applications at your institution and adhering to principled implementation can build trust around your institution’s AI integration.
5. Partner with intention. Partnering around governance and investment management is on the rise, including the use of outsourced investment offices. Take advantage of opportunities to partner around investing, share governance best practices with similar institutions, and to tackle the various challenges facing your community or industry.
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