Author: Jeremy Taylor
This podcast represents the first in a new series that delves into the market strategies of Catholic Investment Services’ esteemed investment partners. This premiere edition features Chris Begg, Chief Investment Officer and Co-Founder of East Coast Asset Management. Joining Chris for this engaging and enlightening discussion is Scott Malpass, CIS Co-Founder and Board Chair, and retired Chief Investment Officer for the University of Notre Dame.
Listen on Spotify:
Highlights
When was East Coast Asset Management foundation – 5:15
Thinking about Compound Interest – 6:59
There’s a unique skill set – 9:34
Taking a topic that is interesting to you – 10:55
A holistic view from Chris’ perspective – 13:11
A monopoly situation – 14:52
Being disciplined and having patience – 23:44
Reducing friction to focus – 24:42
A very productive place for them – 28:55
This webinar represents the first in a new series that delves into the market strategies of CIS’s esteemed investment partners. This premiere edition features Chris Begg, Chief Investment Officer and Co-Founder of East Coast Asset Management. Joining Chris for this engaging and enlightening session is Scott Malpass, CIS Co-Founder and Board Chair, and retired Chief Investment Officer for the University of Notre Dame.
00:00 – Webinar opens, attendees join
00:10 – Tom Lanctot, CIS CEO, welcome and introductions
01:40 – Opening prayer
03:20 – Scott Malpass, CIS Board Chair & Co-Founder, opening remarks
05:30 – Chris Begg, President & CIO, opening remarks
06:30 – Heros & Mentors, Who has influenced you?
07:25 – Joys of compounding interest, Warren Buffett’s early partnership letters
08:50 – East Coast Asset Management overview
10:20 – How has your philosophy evolved over the years
14:20 – Can you describe how you define and source exceptional businesses?
16:00 – What are the layers of competitive advantage?
19:00 – The Grove of Titans
19:50 – Portfolio Concentration and evaluating IRRs
23:20 – The source built Arches; Portals, Bridges & Domes
27:00 – How have ESG factors informed your decision making?
29:20 – CPI +5%, is this still a reasonable benchmark?
32:00 – How do you value a business?
34:20 – What are the main themes expressed in the portfolio today?
37:00 – How did you build your team at East Coast?
39:00 – Holding periods and portfolio turnover
40:30 – What have you learned from any mistakes made along the way?
42:50 – How do you think about disruptive innovation as a trend?
44:30 – Is your strategy tax efficient?
46:50 – How do you engage and build relationships with the management teams you own?
48:20 – Thoughts on Europe’s investment opportunity set?
50:00 – IRRs and valuation considerations
51:30 – China and investment opportunities
53:00 – Continuous improvement, describe your experience as an adjunct professor at Columbia’s Business School
55:00 – What makes a great investor?
55:30 – Thank you and closing
This podcast represents the first in a new series that explores the innovations of Catholic nonprofits as they advance their missions around the world. In this podcast, Sister Irene O’Neill CSJ, President of Sisters Rising Worldwide joins Jack Brennan, CIS Founding Chair, for a dynamic conversation about her work and how her organization uses technology to unite sisters around the world in pursuing their vital mission.
Listen on Spotify:
Highlights
How to help children love themselves – 4:04
What’s the superpower? LOVE! – 6:12
A platform built for sisters – 13:44
The community of sisters is profound – 15:11
Young people, the church, and the work that sisters do – 20:06
Thinking about success for the future – 24:46
As a non-profit investment manager, our team has always been focused on being a champion to the non-profit institutions and board members we serve. We are excited to launch Sustainable Grace, which will be an insightful conversation, and another resource we provide through the CIS Institute. Sustainable Grace will explore the latest capital market and investing ideas, through our Manager in Focus series, we’ll also discuss best practice ideas including board & committee governance, advancement and stewardship, as well as endowment management; in our Principles in Focus series, additionally we’ll feature some of the amazing ministry of the non-profit institutions we serve and ways for the Catholic community to get involved; part of our Mission in Focus series. Our Institute has always served as a resource for many, Sustainable Grace will be a great addition and continue to provide insight through plain English conversations from industry professionals and those who have traveled the path before.
Apple
https://podcasts.apple.com/us/podcast/sustainable-grace/id1584867496
Spotify
https://open.spotify.com/episode/1d2dGcoufovu4k4tPsxYqB?si=dMun-jq_TxSmmsUmLzMfcg&dl_branch=1&nd=1
This webinar represents the first in a new series that explores the innovations of Catholic non-profits as they advance their missions around the world. In this webinar, Sister Irene O’Neill CSJ, President of Sisters Rising Worldwide joins Jack Brennan, CIS Founding Chair, for a dynamic conversation about her work and how her organization uses technology to unite sisters around the world in pursuing their vital mission.
00:00 – Webinar opens
00:02 – Michael Nagy, Managing Director, welcome and introductions
01:01 – Opening prayer
01:55 – Jack Brennan, CIS Founding Chairman, opening remarks
03:10 – Introduction to Sister Irene O’Neil
06:30 – What inspires you?
08:55 – How did you become a great leader?
11:50 – What is the Mission of Sisters Rising Worldwide?
14:40 – How does the Platform work?
18:00 – Can you describe the Peace Room, and how sisters learn about the platform?
20:42 – Technology, Outcomes, Connectivity and collaboration
22:30 – How has the platform been received by the Catholic community?
26:30 – How was Sisters Rising Worldwide funded?
31:10 – How can we help grow public support for the platform?
35:45 – Where do you see Sisters Rising in 10yrs? How do you think about it?
40:15 – What is the organization governance structure? Is there a board?
42:15 – Q&A
43:20 – Q1: How do you incorporate other languages on the platform?
44:20 – Q2: What is Talithakum.info ? & Why is it important for everyone to know about?
45:32 – Q3: Does Sisters Rising Worldwide receive funding from the Catholic church?
46:55 – Q4: How does Sisters Rising Worldwide facilitate resources/treasures?
49:00 – Q5: Do you work with local Catholic Foundations?
51:20 – Q6: How are you growing the platform?
52:21 – Thank you and closing
This webinar features an exploration of sound governance practices in a time of uncertainty. This session offers insights into 5 imperatives for keeping your institution’s goals and investment strategy aligned to maintain focus and momentum. Sharing their views are industry leaders: Paul Schott Stevens, CIS board member and recently retired CEO of the Investment Company Institute, and Chris Merker, Director at Robert W. Baird & Co.
00:00 – Webinar opens, attendees join
00:10 – Tom Lanctot, Chief Executive Officer, welcome and panelist introductions
03:10 – Serenity, opening prayer
03:40 – Overview of our Board governance empirical research study
06:10 – The Trustee Governance Guide: 5 Imperatives for 21st Century Investing
06:50 – 1st Imperative: Be well governed
21:00 – Sample questions from the committee self-assessment survey
24:40 – 2nd Imperative: Be knowledgeable
35:30 – 3rd Imperative: Be diversified in your investment strategy
40:10 – 4th Imperative: Be disciplined
51:20 – Q&A
52:00 – Q: Can you discuss Board composition & diversity?
55:00 – Q: Did the research examine ESG factors and considerations?
57:00 – Q: How did the data help formulate the hypothesis that weak governance affects investment performance?
58:00 – Thank you and closing
Understanding the Role of Global Equity
Introduction
Leaders of Catholic institutions face unique challenges in ensuring the vitality and durability of their organizations. Dedicated to advancing the faith and serving humanity, they must constantly fund-raise and manage spending to avoid a future financial crisis. Many such organizations create endowments and form investment committees to build a more durable financial platform that can ensure a continuing flow of resources for those who rely on them – students, communities, or disadvantaged people around the world.
Catholic endowments often invest with the goal of achieving a long-term return target of “CPI+5%” – which is the U.S. inflation rate (as measured by the Consumer Price Index, or CPI), plus 5 percent. This target is popular because, over long periods of time, achieving such returns enables institutions to provide essential aid while also growing, in real terms.
In recent years, the strategy for achieving the CPI+5% has evolved for Catholic institutions. In decades past, fiduciaries were able to rely on positive returns from the fixed income (e.g., bond) portion of their investment portfolios, which comprised roughly 40% of their overall endowment funds. The remaining 60% of these portfolios was comprised of equities (typically U.S. stocks), private equity, venture capital or other instruments. This 60/40 ratio was favored by fiduciaries because the 40% fixed income portion not only produced reasonable returns, but also helped to lend “ballast” to the portfolio to allow the 60% equity allocation to pursue higher returns, albeit with commensurately higher volatility. These two engines, taken together, often helped fiduciaries achieve the CPI+5% goal.
For a copy of the full version of Understanding the Role of Global Equity, please email: info@catholicinvest.org
This webinar zeroes in on endowment best practices, including investment strategy, portfolio construction and asset allocation, and integrating development efforts to grow your endowment. Features insights from: Paulita Pike, CIS Board Member; Marco Clark, from St. Thomas University in Austin; and Tim Sullivan, President of Bishop Feehan High School in Massachusetts.
00:00 – Webinar opens, attendees enter
00:18 – Larry Furey, Founding Partner, PIM overview, welcome and opening remarks
02:30 – Zela Astarjian, Managing Director, welcome and panelist introductions
06:30 – What is an endowment, and what are some of the benefits they provide
17:55 – How does an institution organize and begin to build their endowment
19:35 – How to grow and advance your endowment
26:26 – Stewardship, spending levels, and governance considerations
29:06 – Investment committees, the role they serve
39:20 – Q&A
39:40 – Q: At what size should a Catholic Institution consider forming an endowment, investment committee?
43:40 – Q: How are endowments structured, operating surplus, board designated funds, and donor restricted gifts
47:50 – Q: Development considerations for grammar schools
49:30 – Q: Importance of having a strong committee chair
51:20 – Q: How to think about responsible investment, ESG, Impact investing, etc.
53:20 – Q: Marco’s personal experience with planning, development and growing the “Cross & Anchor” fund for Bishop McNamara High School
57:00 – Thank you and closing
This webinar features a dynamic conversation with Florida’s Catholic fiduciaries, who are striving to invest strategically and prudently as the world transitions to a post-pandemic era. Features insights from Scott Malpass, CIS board chair and recently retired CIO of the University of Notre Dame, and Bill Fenton, Senior Director at Cross Catholic Outreach.
00:00 – Webinar opens, attendees enter
00:07 – Jeremy Taylor, Managing Director, welcome and panelist introductions
02:40 – Opening Prayer
03:50 – Overview of Cross Catholic Outreach
06:25 – A catalyst for CIS’ formation and Bill’s history of collaboration with Scott
13:10 – Investment Playbook & Governance during the time of a crisis
16:10 – How did Cross Catholic navigate some of the challenges presented in 2020
19:10 – Current market environment & investment opportunities ahead
24:30 – How should Catholic institutions position their portfolios given the current low-yield environment
27:40 – How to build an excellent investment committee
35:10 – Dispelling a common myth; by incorporating Catholic Social Teaching or ESG principles one sacrifices investment performance
39:00 – Vatican’s role in responsible investing, Laudato Si’ and its’ influence
41:40 – Q&A
42:00 – Q: Investing in emerging markets, specifically the Chinese market
45:20 – Q: Considerations for smaller Catholic institutions
47:30 – Q: Scott’s experience serving on the Board of the Vatican Bank
49:30 – Q: A practitioners approach to responsible investing
52:30 – Q: How to diversify from the traditional 60 equity /40 fixed income portfolio
54:00 – Thank you and closing
This webinar features a discussion of how Catholic Institutions can incorporate Laudato Si and Fratelli Tutti into their investing, while deploying their investments and philanthropy more strategically. Sharing their views are industry experts: Alexia Kelley, CEO of FADICA; Mike Barry, CIO of Georgetown University, and Tim Connors, a prominent lay Catholic leader and private equity investor.
00:00 – Webinar opens, attendees enter
00:05 – Tom Lanctot, CEO of CIS, welcome and panelist introductions
04:45 – Opening Prayer, Serenity
05:15 – Tim Connors, moderator opening remarks
05:30 – 4 Broad categories that define the trend: SRI, ESG, Engagement & Impact
09:50 – A historical look at the evolution of Catholic SRI
14:25 – Dispelling a common myth; by incorporating ESG principles one sacrifices investment performance
22:15 – How to implement alignment & ESG principles into your investment policy
32:15 – Data providers, A practitioners approach to ESG & Impact investing implementation
41:15 – Why Now, Why ESG, opportunities and challenges ahead
43:05 – Q&A
43:20 – Q: Survey data set: How are colleges and universities engaging
49:00 – Q: Venture capital, Start Ups, & Mission
53:00 – Q: Navigating the data; SDGs, ratings providers & global initiatives
54:30 – Q: How can smaller Catholic institutions access private market investments
56:00 – Q: USCCB, Laudato Si’ & a pivot from Fossil Fuels
57:40 – Thank you and closing