(October 2, 2013) – The Catholic Healthcare Investment Management Company (CHIMCO), a $26 billion health care fund, has reinvented itself as an asset manager.
On October 1, CHIMCO officially became Ascension Investment Management, according to its parent organization. While the moniker signals a new direction for the fund, it has retained its investment staff, external managers, Catholic values, and internal holdings.
“The new name reflects the company's completed transition from managing primarily Ascension assets to becoming a registered investment advisor and managing assets on behalf of outside clients,” the organization explained.
CIO David Erickson told aiCIO that this change allows the fund to capitalize on one of its most valuable assets: its skills as an institutional investor.
“Hospital revenues are dropping, and they’re looking for ways to diversify their income,” Erickson said. “We already had existing clients, and a number of organizations who wanted to join their assets in with us.”
Ascension aims to become the leading manager for asset owners that share its values for socially responsible investing, according to Erickson.
"Everything we invest in is done with our values in mind, and the clients we partner with have similar values to ours," he told aiCIO in late 2012. “We don't think those guidelines impair our returns, but they do require extra work—more due diligence and monitoring.”
CHIMCO’s leaders saw an opportunity with smaller, values-oriented assets owners who lack the capacity to take on that extra work—or at least do it efficiently. With the new branding, Ascension hopes it raise its profile in that space, according to Erickson.
“Obviously, our size helps us to access excellent managers and negotiate from a position of strength," he said.
Furthermore, Erickson noted that the team’s expertise in alternatives has been a particular draw. “For example,” he said, “we already have a non-Catholic client that’s invested just in our hedge funds portfolio.”
The St. Louis, Missouri-based fund won in the healthcare category at aiCIO’s 2012 innovation awards.
Related Content: Profile of David Erickson