CALPERS – CALSTERS DIVERSITY CONFERENCE APRIL 25, 2006. PRUDENTLY ACHIEVING DIVERSITY THROUGH AN EMERGING MANAGER PROGRAM. Tina Byles Williams Chief Investment Officer & Chief Executive Officer FIS Group. HISTORICAL PERSPECTIVE: AN UNLEVEL PLAYING FIELD.
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APRIL 25, 2006
PRUDENTLY ACHIEVING DIVERSITY THROUGH AN EMERGING MANAGER PROGRAM
Tina Byles Williams
Chief Investment Officer &
Chief Executive Officer
assets than the average minority-owned firm, even when established in the same year.
even when other explanatory variables are taken into account.
to participate in fewer searches
Asset ClassAssets no more than:
Large Cap Equity $2 billion
Mid/Small Cap Equity $0.3 billion
Fixed Income $2 billion
ALL MANAGERSCOMBINED DATABASE PROPRIETARY DATABASE
MBE 58% 56% 67%
WBE42% 44% 33%
MBE/WBE TOTAL 100% 100% 100%
EQUITY256% 80% 93%
FIXED INCOME2 44%20% 7%
TOTAL 100% 100% 100%
1As of January 2006
2Several firms manage multiple asset classes.
forecasting future returns
greater “safety net” from baseline fee income from large asset pools and the firm’s franchise value
Result: Superior investment performance can be garnered from skillfully combining, identifying and monitoring talented investment managers in entrepreneurial firms that channel their investment acumen, focus and passion to achieve long-term success.
Seven attributes of highly successful Emerging Managers:
value added (alpha)