The Recent Increased Fundings in Global Equities
Institutional interest in global equity investing has long been dormant in the United States until a recent surge of new mandates, focusing the industry’s attention on a long ignored asset class. These new investments are not your father’s global equity mandates, nor are they similar to the strategies long used overseas. They have a unique rationale and their use amongst pension plans suggests they will become an important and enduring mandate trend for investors of U.S. pension assets. Amongst the differences are the types of managers being funded as well as the source of most value added amongst active managers (stock selection, not U.S./non-U.S. allocations).