CAIA Association Unveils the Guiding Principles for Investment Professionals That Will Drive Implementation of The Portfolio for the Future™

October 05, 2022 at 09:00 AM EDT

New piece, titled “A Renewed Professionalism,” provides detailed steps needed to usher in a new era of fiduciary responsibility and client-centric investment approaches and outcomes

The Chartered Alternative Investment Analyst (CAIA) Association today unveiled a new report, titled “A Renewed Professionalism,” that provides specific, actionable guiding principles for investment professionals as they work to implement the Portfolio for the Future^™.

That concept of The Portfolio for the Future^™ was the subject of a major piece released by CAIA earlier this year that served as a clarion call for practitioners across all walks of the asset management industry, signaling the emergence of a new paradigm for investors – one where allocators need to work smarter, and with a fiduciary’s mindset, to creatively deliver client outcomes.

That flagship Portfolio for the Future document included calls to action written by industry luminaries such as Mark Anson of Commonfund, Andrea Auerbach of Cambridge Associates, Rober Urwin of Thinking Ahead Institute, Anne Simpson of Franklin Templeton, and Ashby Monk of Stanford University, each of whom brought a unique viewpoint as to why such a radical shift is needed, and why it needs to happen now.

With today’s release of A Renewed Professionalism, CAIA’s leadership is sharing the “how” when it comes to driving and implementing meaningful change.

“Calling this report ‘A Renewed Professionalism’ was a very specific and very pointed choice,” said William J. Kelly, CAIA, Chief Executive Officer of the CAIA Association. “The continued rise of idiosyncratic asset classes and strategies is only accelerating, but the end client, the all-important investor, must be served by true professionals who can not only talk product, but can also show a demonstrated level of competency and the strictest adherence to the highest ethical standards. If our industry does not embrace this approach, we face the prospect of a very real reckoning as fiduciaries.”

A Renewed Professionalism contains six guiding principles which CAIA is calling on all investment professionals to place at the heart of their decision-making processes, including:

Cultivate a Transparent and Client-Centered Ethos;
Start with Purpose-Driven Portfolio Building Blocks;
Diagnose Your Client’s Values and Embed Tailored Sustainability Factors in Your Process;
Treat Liquidity as a Feature Rather Than a Benefit;
Identify and Capitalize on Your Firm’s Edge; and
Invest with Integrity and Allocate to True Partners.

Each guiding principle is examined and explained in detail in this piece, which can be accessed here, and includes a “Professionalism in Practice” section, which lays out in clear terms just why it is so important to include this principle as the industry looks to return professionalism to the forefront of its approach.

“We are very pleased to be releasing this piece today and continuing our global efforts to bring greater professionalism and a more client-focused philosophy to the important work that practitioners are doing for so many different types of investors,” added Laura Merlini, CAIA, Managing Director of EMEA for the CAIA Association. “These principles are universal truths that apply regardless of market, sector, asset class or investment type. My colleagues and I look forward to speaking further about all of this as we travel the world in our ongoing education-focused mission.”

The Portfolio for the Future flagship report can be downloaded here.

A Renewed Professionalism is available for download here.

About the CAIA Association

The CAIA Association is a global professional body dedicated to creating greater alignment, transparency, and knowledge for all investors, with a specific emphasis on alternative investments. A Member-driven organization representing nearly 13,000 professionals in approximately 100 countries, CAIA Association advocates for the highest ethical standards. The organization provides unbiased insight on a broad range of investment strategies and industry issues, key among them being efforts to bring greater diversification to portfolio construction decisions to achieve better long-term investor outcomes. To learn more about the CAIA Association and how to become part of the organization’s mission, please visit https://caia.org/.