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.
Finalists
Fidelity Investments
Goldman Sachs Asset Management
Morgan Stanley
SEI
Finalists
Dimensional Fund Advisors
J.P. Morgan Asset Management
T. Rowe Price
Vanguard
Finalists
Alantra
D.E. Shaw
Renaissance Technologies
Two Sigma
DC
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