Author: Amy Paterson

A Season for Change
Happily, we can confirm that most vaccines appear to be working and that COVID appears to be on the wane in most places throughout the world. It is not over, but with some luck it will be substantially contained within the next 12 months everywhere. That means back to business as “normal” as we remember it. We will need to factor all the changes that COVID has forced onto the world into our investment thinking, of course, but at least we will not have to experience as much medical tragedy nor try to read epidemiological tea leaves (we hope) much longer. The great acceleration in technology adoption COVID forced upon the world may be a long-lasting phenomenon, we’ll see. Our first order of business in this re-opening, if you will, is to take stock of the basics.

Nearly six years ago, as we took the investment Hippocratic oath to do no harm, our first order of business was to eliminate portfolio exposures expected to underperform. The first thing we did was eliminate dedicated exposures to capital intensive sectors (commodities and REITs) from our equity portfolios. We also determined that Europe was not well positioned to produce attractive returns primarily because their equity markets were heavily skewed toward bank and other value-oriented stocks and the political/monetary structure of the Eurozone seemed destined not to work, at least not as well as other regions. While our longer-term Europe thesis may still be correct, for the next few years we think the tables may tilt back towards Europe (more later).

Brendon Parry, TIFF’s Managing Director of Private Equities, is quoted in the June 7, 2021 issue of WSJ Pro Private Equity. Brendon is quoted on the recent boom in the Special Purpose Acquisition Companies (SPAC) market and the impact they have on the alignment between limited and general partners.

Private Equity Firms Wrestle With SPAC Dilemma: Inside or Outside the Fund?

TIFF hosted a webinar titled Board Governance in an OCIO World on May 25th, 2021.  Michael Murray, TIFF’s Head of Strategic Partnerships, was joined by investment industry experts Deborah Boedicker (Independent Consultant & Philanthropist TIFF Board Member) and Bruce Wilcox (Teachers College of Columbia University Board of Directors, Investment Committee Chair).  The panelists discussed the importance of the Investment Policy Statement (IPS), board roles and responsibilities, and primary challenges facing boards today.

You can view the 35-minute webinar via the link below.

Webinar: Board Governance in an OCIO World

Please note that this webinar has been edited from its original recording to shorten its length.  This webinar is for general informational purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy securities. The asset classes discussed may not be suitable for all investors.  All expressions of opinion are subject to change.  Past performance does not guarantee future results.  All investments are subject to risk, including the possible loss of principal.

The global market for “sustainable” fixed-income securities is estimated at over $1 trillion[1] and growing.  It includes corporate, municipal, sovereign, and securitized bonds issued to finance businesses, infrastructure and projects designed to have positive environmental and social impact.  The purpose of this paper is to explain TIFF’s approach to sustainable fixed-income and how we are tapping into this opportunity set.

TIFF launched dedicated sustainability strategies in July of 2020.  The dual mandate of these sustainability strategies is to seek investment returns in excess of CPI + 5% over market cycles while maximizing positive environmental and social impact.  These strategies employ the same time-tested investment process that TIFF has used to manage capital for non-profits for thirty years, relying on superior manager selection across public equities, diversifying strategies, and fixed income.  There are some modest but important differences in how we construct the sustainability portfolios, relative to TIFF’s other comprehensive solutions, including how we manage fixed income.