Chronicles: Issue 4, May 2020

Dear Investment Professionals,

Welcome to the May edition of Chronicles of an Allocator. As always, we hope you remain healthy and safe. With the pace of things happening right now, it’s hard to believe we are only five months into the year.

While a lot has changed in recent weeks, the value proposition of diversification has certainly remained constant. What also remains steady is the continued debate among investment professionals and regulatory bodies surrounding the potential relaxation of the accredited investor rule in the United States. While this debate is currently mainstream in the U.S., the results of any regulatory changes have vast implications for other capital markets.

There is no clear answer, with strong proponents for and against democratizing access to private capital. As always, CAIA Association seeks to be an objective voice in this debate. While capital formation, and therefore a lot of initial value creation, have continued to move to the private markets, these markets are complex and opaque. Investors needs to be educated and beneficiaries need to employ guardrails.

Later this month, CAIA Association will be hosting what will no doubt be a lively panel discussion where industry experts will explore the implications of policy change and what it means for the end investor. We hope you can join us on May 26th at 2:00 PM EDT, alongside Andrea Auerbach of Cambridge Associates, Barbara Roper of the Consumer Federation of America, and Lawrence Calcano of iCapital Network.


John L. Bowman, CFA, Senior Managing Director, Twitter, LinkedIn

Keith Black, PhD, CFA, CAIA, FDP, Managing Director Content Strategy, Twitter, LinkedIn

Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development, Twitter, LinkedIn