Developments in world financial markets seem to occur more quickly every year, requiring ever-higher levels of expertise and experience on the part of investment committees. Climate change is a more slowly-evolving issue that will require a more strategic approach from trustees and investments committees. The Paris Agreement and the Clean Power Plan clearly raise important investment considerations for institutional investors. In addition, beyond portfolio considerations, practical issues suggest themselves.
Whether it was the first time in 1980 or last time in 2015, riding Space Mountain has been a scary event. This blind roller coaster is similar to what has unfolded in the equity market recently. Yes, that first blind drop takes your breath away but in the end you survive. We have written about equity market volatility quite a bit in the last few months. In fact, of the 14 trading days in 2016, nine of them have had a move in the S&P 500 in excess of one percent and four have had a move in excess of two percent.
Right now, central bank policy and money market reform are front and center in the cash markets. Are historic indicators of market stress cause for concern? Or are they reflecting the technical impacts of money market reform?
The market moving headlines for the bulk of the month focused on the slowdown in China and the impact of lower oil prices for the emerging markets and the domestic energy sector. Ultimately, the S&P 500 finished the month down about five percent but up almost seven percent from the intra-month low of 1812. Read our weekly blog post for the most topical events in the latest week.
Today, few OCIOs that serve nonprofits are total institutional partners. Value-added OCIO providers must no longer view an institution through a purely investment-related, or even finance-related, keyhole. Many institutions require a broader and deeper approach—one that addresses wide-ranging institutional factors that extend well beyond investment management. Here are six key questions that can help you find a provider who takes a holistic approach.