Chronicles: Issue 10, December 2020

Dear Investment Professional,

As the New Year approaches, we first wanted to thank you all for your interest and contributions to our content and continuing education efforts. We look forward to seeing you (hopefully in person!) in 2021.

As we’ve shared in previous issues, the traditional 60/40 portfolio is facing a structural headwind in most developed nations, as interest rates sit at rock bottom, or even negative in some countries, and public market valuations appear stretched. Consequently, many investors are forced to re-evaluate saving habits and their asset allocations and  increasingly turning to alternative sources of return. We cannot underscore the importance of investment and operational due diligence, especially for those new to alternative investments.

What’s more, the secular trends of ESG integration and use of alternative data have added further complexities to the manager research process, especially in private markets where far more information asymmetries exist. We expect the ESG landscape to evolve and improve as better and more diversified sources of data provide additional tools for investors to properly measure and manage the non-financial impact of their portfolio.

Earlier this year, CAIA Association formed its first Global Editorial Board, a group designed to set, monitor, and continuously evaluate key industry trends and develop topical priorities for our content and continuing education activities. This is a purposeful effort to further bring “content to the center” of everything we do, and serves as a way to most effectively partner with industry leaders, thought leaders, and our 11,000+ strong CAIA Members. We’re excited to bring even more great insights to you in 2021.

Wishing you all a very Happy New Year!

John L. Bowman, CFA, Senior Managing Director, TwitterLinkedIn

Keith Black, PhD, CFA, CAIA, FDP, Managing Director Content Strategy, TwitterLinkedIn

Guowei Jack Wu, CFA, Content Director, CAIA APAC, TwitterLinkedIn

Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development, TwitterLinkedIn