Wespath Institutional Investments (WII)’s investment approach is grounded on a core set of ten Investment Beliefs that state WII’s fundamental investment philosophy and guide our strategic biases—overweight and underweight allocations to market sectors compared to their benchmarks. These strategic biases aim to add value by reflecting WII’s long-term investment worldview on global growth and markets. WII’s multi-manager investment approach offers diversified and global exposure to 35 carefully selected, world-class multi-strategy firms and boutique specialist investment managers. WII’s investment process relies almost exclusively on the utilization of unaffiliated external investment managers. The only exception to this approach is the Positive Social Purpose (PSP) Lending Program, which seeks market rate returns, by acting as a source of long-term capital to traditionally underserved lending market niches. The WII portfolios are primarily actively managed. WII believes that active management has the potential to add value in less efficient asset classes. WII believes there is a strategic opportunity for alternative investments in an endowment portfolio. Non‐marketable alternative strategies, including private equity, private real estate, and others, are employed thoughtfully within the funds to provide increased return potential and reduce overall volatility through greater diversification. All of the WII portfolios incorporate sustainable investing through ESG-related activities that support the creation of long-term value for our institutional clients and fulfill our fiduciary duty. Our investment team also incorporates the consideration of ESG factors throughout our investment process, across asset classes and in the selection of asset managers. We evaluate ESG integration by our external managers and seek to understand how the consideration of ESG factors filters down from organizational policies to everyday investment decision-making. |
