Dear clients and colleagues,
This week we attended the 2019 CalPERS & CalSTRS Diversity Forum in Sacramento, California. CalPERS (The California Public Employees’ Retirement System) and CalSTRS (The California State Teachers’ Retirement System) are the two largest pension funds in the United States. This is the fifth forum of this kind, featuring experts from McKinsey, Goldman Sachs, State Street, The Carlyle Group, Ernst & Young, CFA Institute and Lancaster University, to name a few. Over 400 people participated, mostly investment managers. We found the sessions very educational and would like to share some takeaways with you.
First of all, how do we define Diversity and Inclusion?
A very interesting quote we heard at the Forum was: “Diversity is being asked to the party. Inclusion is being asked to dance.”
Diversity often refers to the variety of similarities and differences among people, and includes a wide range of factors, such as gender, race, ethnicity, religion, disability and work style.
Inclusion is a dynamic state of operating in which diversity is leveraged to create a fair, healthy and high-performing organization or community. An inclusive environment ensures equitable access to resources and opportunities for all.
What did the data tell us?
McKinsey issued a diversity report in 2018 based on a large data set of over 1,000 companies in 12 countries. The findings were:
Why do Diversity and Inclusion matter for investment management firms now?
At Global Alpha, we strongly believe that team diversity is a key contributor to successful investing. It has been a deliberate practice at the firm to build a team of investment professionals with different genders, backgrounds and experiences. When hiring, we look for candidates who can work well within a team environment and who are able to demonstrate flexibility and resilience when faced with difficult portfolio management decisions.
One of our three founders is a female minority. Among the six members of our management team, two are female and three are minorities. Of the ten people that make up the entire Global Alpha team, three are female and five are minorities.
In conclusion, there is no doubt that the business case for diversity is compelling. Building a truly inclusive culture takes a long-term tremendous effort, but it’s well worth it.
Have a great week.
The Global Alpha team
1 All returns and fund details are a) based on Series F units; b) net of fees; c) annualized if period is greater than one year; d) as at June 14, 2019; e) annual returns are from 03/15/2018. The index is 100% MSCI EAFE Small Cap NR USD (CAD) and is computed by Ninepoint Partners LP based on publicly available index information.
Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rates of return for Series F of the Funds for the period ended June 14, 2019 are based on the historical annual compounded total returns including changes in [unit/share] value and reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.
The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: commodity risk; concentration risk; credit risk; currency risk; derivatives risk; exchange traded funds risk; foreign investment risk; in ation risk; interest rate risk; liquidity risk; market risk; securities lending, repurchase and reverse repurchase transactions risk; series risk; short selling risk; small capitalization natural resource company risk; small company risk; tax risk.
The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction.
The opinions, estimates and projections (“information”) contained within this report are solely those of Ninepoint Partners LP (“Ninepoint”) and are subject to change without notice. Ninepoint makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Ninepoint assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Ninepoint is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Please contact your own personal advisor on your particular circumstances.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Ninepoint Partners LP. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.
Ninepoint Partners LP: Toll Free: 1.866.299.9906. DEALER SERVICES: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540