Chief Investment Officer

Real

AEW Global

With so many players within the real assets realm, AEW remained a popular favorite among market practitioners.

The firm, selected for its team structure, incorporation of macroeconomic factors to better facilitate fundamental research within the real estate market, and its ability to identify sourcing opportunities within each property type. Popular strategies within AEW’s offerings include funds that target commercial properties in Southeast Asia, value-add opportunities within the US senior housing sector, and the firm’s Partners Funds, a series of real estate opportunistic private equity funds.

“The firm’s disciplined approach and creativity to reposition real estate to meet the changing needs of a given market continues to generate value to its investors,” asserted one CIO. The firm’s risk management practices and its consistent performance is why another CIO considered AEW a top pick.

Finalists

Arden Group Brookfield Partners Group TH Real Estate

Citadel

Ahandful of hedge fund firms continue to captivate the market as fan favorites among CIOs. The firm’s September announcement to return some of its capital, particularly placed in fund of funds, resonated well with investors. “Managing too much money can hurt performance,” said one CIO.

Citadel takes alignment a step further, whereby about

20% of its fund’s capital comes from its partners/employees, who pay the same fees/costs as their clients. Few, if any, hedge fund managers pay management fees to invest in their own funds.

This reinvestment allows Citadel to dedicate resources to its intellectual capital, risk management, and technological infrastructures. The firm’s relatively recent centralized interactive risk center and the rollout of a dynamic client portal this year illustrate its approach to governance and commitment to transparency.

Finally, in January, the firm hired veteran Joanna Welsh,

who brings more than two decades of industry experience, as its chief risk officer.

Prudential

Prudential’s innovativeness and client focus resonated strongly with asset owners this year. The Prudential IncomeFlex Target product, in particular, received high marks for allowing retirees to meet their long-term goals.

Prudential’s solutions in the DC category were inspired by research that showed that nine out of 10 participants in defined contribution retirement plans seek guaranteed income that they cannot outlive. Certainty and security to their retirement years are crucial provisions retirees seek.

Key features of the Prudential IncomeFlex program include guaranteed lifetime income, downside market protection for retirement income, and the sustained potential for growth. The wide range of underlying investments and investment programs that can be combined with IncomeFlex was another compelling factor.

Prudential’s proactiveness in anticipating evolving needs of retirees become more pronounced was another reason for it being a desirable partner.

Russell Investments

As one of the largest OCIO providers, with a top-ranking for client satisfaction in CIO’s 2017 OCIO Vendor Ratings survey, Russell Investments remains a trailblazer in the space. Multi-asset investing has transformed the firm’s OCIO relationships, with growth from buyers across a range of institutional channels—whether it’s DB and DC plans, healthcare systems, nonprofit organizations, or university endowments. “Our multi-asset approach delivers highly diversified, dynamically managed investment solutions designed to capture sources of return and manage downside risk in ways we hadn’t dreamed of a decade ago,” according to Eric Macy, managing director at Russell Investments. The firm made several key hires to support its institutional business, including Michael Hall, who rejoined Russell in September as managing director after serving as West Division leader for Towers Watson Investment Services at Willis Towers Watson. Russell Investments’ firm-wide AUM grew to $289 billion as of September 30, 2017, up from $257 billion at the same time last year.