Tilly Franklin, CEO/CIO of University of Cambridge Investment Management, explains how sustainability and emissions targets factor into selecting prospective fund managers.
0:00 / 0:26exact quote · 26.8s
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“We definitely don't expect a new manager to necessarily be focused on these issues, the point of investment. I think many of our managers are quite small boutique type fund managers. I think what's really important to us is that the manager is receptive to these discussions, and we think of it as being prepared to come on a journey with us.”
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“I feel so much of our job is about pattern recognition. And so if I want to appoint a Let's just say a PE manager, because that's my background. It's really hard to do so if I haven't seen all the other PE managers that there are that could potentially fulfill…”
Tilly FranklinJan 22, 2024▶ 29:12Tilly Franklin – Endowment Model at Cambridge University (EP.363)
Insight
Franklin: Donors give more when institutions appear financially inaccessible
“But actually, I think in terms of philanthropy, People tend to want to give when something's actually very inaccessible from a cost perspective.”
Tilly FranklinJan 22, 2024▶ 31:23Tilly Franklin – Endowment Model at Cambridge University (EP.363)
Insight
Franklin: Rigidly adhering to processes in changed markets is a red flag
“I think, again, a big red flag is somebody who almost religiously sticks to the process over time, even when market conditions have changed.”
Tilly FranklinJan 22, 2024▶ 36:53Tilly Franklin – Endowment Model at Cambridge University (EP.363)
Insight
Franklin: Spend illiquidity budgets on uncapped returns, not private credit
“If we're going to use up what we think of as a sort of illiquidity budget, I'd rather be in an asset that offered the potential for Uncapped returns over time, of course, not all of them are going to achieve an extraordinarily high returns, but I didn't want t…”
Tilly FranklinJan 22, 2024▶ 46:26Tilly Franklin – Endowment Model at Cambridge University (EP.363)
Insight
Franklin: Emission-efficient companies will likely be more valuable than peers
“So when we think about our portfolio, it makes sense to us that a company that's a more efficient Consumer of emissions, shall we say, within its business activity over time as a long-term investor is likely to be more valuable than its peers who are less effi…”
Tilly FranklinJan 22, 2024▶ 52:25Tilly Franklin – Endowment Model at Cambridge University (EP.363)
Opinion
Franklin: China's Energy Transition and Healthcare Sectors Are Booming
“There are quite a number of industries where China is really booming, particularly in the whole energy transition supply chain, which is an area that we Think about a lot, partly as a business opportunity also in relation to our sustainable investment agenda. …”
Tilly FranklinJan 22, 2024▶ 59:44Tilly Franklin – Endowment Model at Cambridge University (EP.363)
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