INSTITUTIONAL ADVANCES INCUBATING IDEAS FOR GROWTH
IT MAY COME AS A SURPRISE TO LEARN THAT NEARLY HALF OF THE ASSETS UNDER OUR MANAGEMENT TODAY ARE ON BEHALF OF ENDOWMENT & FOUNDATION AND GLENMEDE INVESTMENT MANAGEMENT CLIENTS. OF $31 BILLION IN ASSETS UNDER MANAGEMENT 45% ARE INSTITUTIONAL ASSETS
Much of the growth of our institutional footprint has occurred during the past decade, and is the result of thoughtful innovation and naturally occurring synergies within our investment platform. Since our founding six decades ago, Glenmede has maintained a singular focus: to provide the highest level of investment management services aligned with the interests of our clients. A fundamental principle driving our culture and processes is our commitment to thoughtful innovation. Take, for instance, in 1969, when sweeping changes to the federal tax code posed dramatic implications for philanthropies. While other corporate trustees might have viewed the newest laws as a hurdle, Glenmede approached the changes as an opportunity to re-evaluate the concentrated stock holdings of The Pew Trusts, leading to the diversification of the portfolio. In the decade that followed, our focus was driven by the need to develop forward-looking investment strategies that turned regulatory challenges into opportunities for increased giving. In 1978, we built on that experience when we made our fiduciary, tax, financial and philanthropic services available to outside investors. From the 1980s to the early 2000s, we continued to grow our investment management business with a bent for doing things differently. For instance, we supplemented our suite of proprietary investment products with external managers and introduced private equity and hedge fund strategies to provide clients with opportunities for non-traditional sources of return. Along with a number of public market strategies, these asset classes have allowed us to hone our expertise in Sharpe Ratio investing, an approach for selecting managers based on the ratio of return to risk rather than performance relative to risk.
OUR GROWTH From our founding mandate to serve a single client, we now serve more than 200 endowment and foundation relationships. With our history and by leveraging our existing platform, we continue to develop resources and expertise dedicated to serving the needs of nonprofit clients. In 2007, the formation of Glenmede Investment Management (GIM) ushered in another new beginning. GIM centralized the management of our many proprietary investment strategies, making them available to investors outside of The Glenmede Trust Company, such as pension plans, consultants, financial advisors and registered investment advisors. Nearly a decade after its launch, GIM has grown from 13 strategies and $1.3 billion in assets to 19 strategies and $6 billion under management. 1 1 GIM s AUM rises to $13.0 billion when including assets managed by it on behalf of The Glenmede Trust Company clients either through mutual funds or managed accounts.
At the root of this substantial growth is an approach that leverages data in an effort to model forward-looking indicators of economic trends, market momentum and individual securities. Having emerged from an entity that serves private clients, GIM s strategies never lose sight of these needs while developing products for an institutional marketplace. Glenmede s culture promotes a think-tank mentality. Our institutional business allows us to scale our thinking in order to incubate, challenge and test new ideas. Peter J. Zuleba, III, CFA President, Glenmede Investment Management HAVING IMPACT Our institutional business allows us to scale our thinking in order to incubate, challenge and test new ideas. Impact investing, which seeks to generate a measurable social or environmental impact with a competitive investment return, is an area where, for more than a decade, Glenmede has partnered with clients to focus on investments specific to their interests in private and public markets. Our Quantitative Research team develops customized screens that serve as a starting point to narrow the universe of investments by ranking companies according to a range of considerations, including environmental, social or governance (ESG) preferences. Last year, we converted the insights from recent path-breaking academic research studies into two new ESG investment strategies. As we enter our 61st year of providing investment management services, we will continue to cultivate and adapt our institutional business alongside our private client business. Our culture of thoughtful innovation helps us leverage new investment ideas across all types of clients, and our legacy as a trustee brings a heightened level of transparency, expertise and personalized service to the institutional marketplace. It is a rare combination, and one we expect will help fuel our growth for many years to come.