Managing investor risks beyond the enterprise level, portfolio barriers and regenerative investment structures | Delilah Rothenberg and Taylor Sekhon

In episode 101, Alex Proimos speaks with Delilah Rothenberg, co-founder and executive director of the Predistribution Initiative and Taylor Sekhon, director at Social Capital Partners.

The podcast is episode three in a special three-part series in association with the Predistribution Initiative as we explore the layers of Influence in the capital markets value chain, incentives, portfolio construction, and financial analysis practices at the asset owner and allocator level that cascade down to the rest of the economy.

Show Notes

In previous podcasts in this series, we explored how the consolidation of capital flows and migration up the risk-return spectrum by institutional investors contributes to systematic risk. In this podcast, we explore the potential for institutional asset owners and allocators to redesign their asset allocation strategies to allow for more regenerative investment structures while still achieving targeted rates of return. We will also explore adjustments to investment practices that can enable a redesign of asset allocation, including benchmarking practices, team incentives and performance reviews, valuation methodologies, and risk management techniques.

References:
Background on the Taylor Guitars deal:
https://www.newswire.ca/news-releases/taylor-guitars-transitions-to-100-employee-ownership-with-support-from-the-healthcare-of-ontario-pension-plan-hoopp-and-social-capital-partners-scp--857853786.html

• Link to the Predistribution Initiative paper, ESG 2.0: Measuring & Managing Investor Risks Beyond the Enterprise Level
• Link to Beyond Modern Portfolio Theory: Investing that Matters by Jon Lukomnik and Jim Hawley (the 75-94% range of estimated returns from systematic factors)
• Link to Aunnie Patton Power's book, Adventure Finance, which covers regenerative investment structures such as revenue based financing, equity redemptions, and other ways to have "structured exits." We plan to do a webinar with Aunnie on July 14th 2021 at 11am ET, and details including registration will be on our website.
• New Yorker article on VC and how it can be "deforming capitalism"

All views expressed on this podcast are subject to change and do not necessarily reflect the views of Conexus Financial. This podcast is for educational purposes only and should not be relied upon as investment advice.

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Market Narratives is a podcast series hosted by Investment Magazine that features unorthodox conversations with thought leaders influencing the world of fiduciary investors.

Investment Magazine is the leading publication for Australia's $3 trillion superannuation industry. It provides trusted news, analysis and editorial on the issues impacting superannuation funds, such as regulation, asset allocation, portfolio construction, governance, as they strive to secure better retirement outcomes for their members.