Our research is organised broadly around a series of themes relating to long-term investing.
Today, there is a wider range of asset classes and management styles from which charities, foundations and endowments can choose. What are the most appropriate investment strategies, asset allocation policies, manager selection frameworks, performance measurement criteria, and sustainable spending policies for these investors? The research of the Centre aims to make a contribution to improving investor understanding of these issues.
Long horizon investors
Sovereign Wealth Funds (SWF), family offices and endowments with a long-term mission share the defining characteristic of an investment horizon that extends over generations. Our focus in this area is on the investment challenges and opportunities conferred on such types of investors. For example, our research on the Norwegian SWF proposes an alternative investment approach to the more widely-known Yale Model.
In the last few decades, the investment community has become increasingly concerned with the integration of environmental, social and governance (ESG) factors into the investment process. Academic research in this field is concerned with the question of whether or not a responsible investing approach is beneficial to both investors and investee firms. In particular, our research examines the role of active ownership strategies and argues that such an approach can create value in certain circumstances.
The ability to look back in time can help investors in at least two ways. First, long runs of data on the returns to equities, bonds, bills, currencies, real estate and other assets provide investors with a background for framing their thinking about contemporary problems, and underpin long-term return assumptions. Second, endowments were among the earliest investors in financial and real estate markets, and a study of their behaviour can inform modern investors. Our papers on Keynes and on Foreign & Colonial examine pioneering investors in equities and in emerging markets, respectively.