The Most Influential Chief Investment Officers of the Year September2024

Prashant Mehta Redening Wealth Management

– John C. Maxwell “

A leader is one who knows the way, goes the way, and shows the way.

Strategic Vision Defining Investment Leadership ‘

Theworldofinvestmentisbuiltonprecision,foresight,andtheabilitytoadaptto

shiftingeconomicconditions.Thosewholeadinthisspacedomorethanmanage capital—theydriveinnovation,identifyemergingopportunities,andbuild sustainablefinancialstrategies.Theirexpertiseextendsbeyondnumbers,shapingindustries andinfluencinglong-termeconomicprogress.Trueleadershipininvestmentrequiresa balanceofanalyticalrigor,sounddecision-making,andthevisiontoanticipatefuturetrends.

Thisedition, The Most Influential Chief Investment Officers of the Year,highlights professionalswhohavemadealastingmarkinthefinancialsector.Theirinsightsand strategicapproacheshaveplayedapivotalroleinstrengtheningportfolios,managingrisk, andunlockingvalueincompetitivemarkets.Inanerawherefinanciallandscapesdemand agilityandprecision,theseleadersbringawealthofexperiencethatenablesorganizationsto maintainstabilitywhilepursuinggrowth.Theirabilitytoassesscomplexitiesandrespond withwell-calculatedstrategiesdefinestheircontributionstotheinvestmentindustry.

AmongthemisPrashantMehta,ahighlyaccomplishedinvestmentleaderwithexpertise spanningmutualfunds,structuredfinance,andtrading.Hisbackgroundinventurecapital andinvestmentadvisoryhaspositionedhimasatrustedexpertinnavigatingfinancial marketswithprecision.Hisapproachcombinesdeepindustryknowledgewitha commitmenttodeliveringstrongfinancialoutcomes,makinghimakeyfigureinshaping investmentstrategies.

Theprofessionalsfeaturedinthiseditionrepresentthehigheststandardsoffinancial leadership,eachbringingauniqueperspectivetotheindustry.Theirworkinfluences businesses,investors,andeconomies,reinforcingtheimportanceofstrategicthinkingin investmentmanagement.Asyouexploretheirinsights,maytheirexperiencesserveasa sourceofinspiration,guidingyourapproachtoinvestmentdecisionsandlong-termfinancial success.

Haveagreatreadahead!

CO NT EN TS

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C O V E R S T O R Y

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How do Chief Investment Ofcers Balance Short-term and Long-term Goals 08.

Prashant Mehta Redening Portfolio Management

A R T I C L E S

How do Chief Investment Ofcers Stay Ahead of Market Volatility

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Prashant Mehta

Redening Wealth Management

C O V E R S T O

Prashant Mehta Chief Investment Officer

The Most Influenal Chief Investment Officer of the Year

Exploring the Impact of Upbringing on Career Choices and the Evolution of a Financial Strategist!

Whenwethinkofwealth,the

,,firstthingthattypically comestomindis money—largebankaccounts, expensivepossessions,andextravagant lifestyles.However,thisdefinitionof wealthmissesthetrueessenceofwhat itmeanstobewealthy Truewealthis notaboutthemoneyitself,butrather thetime,freedom,andpositiveimpact youareabletocreateintheworld.No matterhowmuchmoneyyouhave,we allhavethesame24hoursaday.The wealthiestpeopleintheworldcan't buymoretime.That'swhytimeisthe ultimatecurrency—itistheone resourcethatisfiniteandirreplaceable.

"Wealthisnotjustaboutmoney;it's abouttime,freedom,andimpact."

PrashantMehta,ChiefInvestments OfficerofKEFHoldings,definesthe guidingprinciplesthathaveguidedhis remarkablecareerjourney

Hispathtotheupperechelonsof investmentmanagementwasforged notbychancebutbyalifelongpassion ignitedinhisyouth."Mycareer trajectorywassignificantlyshapedby myupbringing,"heponders."My father'searlyinvolvementinequity investmentsdeeplyinfluencedme,asI grewupsurroundedbyanenvironment whereinvestinginstockswasthe norm.”

Constantfluctuationshelpeddevelop hisabilitytoidentifypatternsand trendsduringhisdevelopmentalyears, furtherignitedwithinhimaprofound curiosityabouttheintricaciesofwealth generation.Consequently,pursuinga careerinwealthmanagementfeltlikea naturalprogression.

In his ideal world, a platform would be created where people of all ages could get helpful guidance on achieving nancial independence and making wise nancial decisions.

Prashant'sjourneybeganinthe bankingsector,specificallywith consumerbankingatStandard CharteredBank(SCB)inGujarat, India."Bankingbroughtmecloserto clientsandbusinesses,ithelpedme understandthemethodtotheaction," expressesPrashant.

In2007,PrashantmovedtoDubai,into privatebankingandengagedwitha diverseportfolio,Prashantshares, “TransitioningfromIndiatoaglobal portfolio,navigatingthecomplex landscapeofglobalinvestmentislike solvingapuzzle:eachpieceofmarket info,carefullyassembledandput together,helpsseethebiggerpicture andfacilitatemydecisionmaking.”

In2009,Itwasduringoneofthese bankinginteractionsthathecaughtthe eyeofMr.FaizalKottikollon,the ChairmanofKEFHoldings.

"Thechancetomoveintoafamily officepresenteditselfduringmy discussionswithMr.Faizal”he reminisces."Afterprovidingcounsel onportfolioaffairsforapproximately twoandahalfyears,Ireceivedan invitationtojoinKEFHoldingsin 2011,markingthecommencementofa fulfillingjourney."

AtthehelmofKEFHoldings' investmentstrategy,Prashanthas emphasizedtheneedforcertaintyand stabilityofreturnoveroptimizing

profitsolely."Ourapproachiscentered oncreatingsustainablevalueforour clientsandempoweringthemto achievetheirlong-termgoalsandmake ameaningfuldifferenceintheworld."

Hisvisionhasbeeninstrumentalinthe remarkablesuccessofKEFHoldings, whichhaswithstoodtheturbulent marketconditionsofthepastdecade withunwaveringresilience.Aligning withMr.Faizal'svisionforKEF Holdings,theinvestmentsverticalhas notonlygeneratedimpressivereturns butalsodrivespositivesocialimpact.

"Ultimately,truewealthismeasured notbythesizeofone'sportfoliobutby thelastingimpactoneleavesonthe world,"heconcludes.Itisthisguiding principlethathasearnedhimthe respectandadmirationofhispeersand cementedhisreputationasoneofthe mostvisionaryinvestmentstrategists ofhisgeneration.

FocusonPrudentRiskManagement

Explainingtheguidingprinciples behindhisapproachtoevaluatingnew investmentopportunities,Prashant statesthat“KEF'sinvestment philosophycentersaroundprudentrisk managementandaclearunderstanding ofitsobjectives.Thecompanyplacesa strongemphasisontheinvestment processitself,viewingreturnsasa

,,

The biggest source of joy for me is spending time with my children, who are currently 11 and 13.

naturaloutcomeofthisprocess.”He furtherhighlightedthat“byoptimizing theirprocesses,theycanautomatically optimizereturns.”

Whilefollowingaformulated investmentpolicy,KEF'sprimary focusliesoneffectiverisk management.Theirgoalisto maximizereturnswhileminimizingthe extentofrisktheytakeon,ultimately aimingforsustainablegrowthand resilienceintheirinvestmentportfolio.

Prashant'swordsunderscorethe company'sbeliefthatoptimized processesleadtooptimizedreturns;the twoareintrinsicallylinked.KEF adheresstrictlytoitsinvestmentpolicy whileprioritizingskillfulrisk management.Bycarefullybalancing returnmaximizationwithcontrolled risk-taking,theypursuesteady, resilientgrowthintheirportfolioover thelongterm.

TheExclusiveApproach

KEFInvestmentscaterstotheboard andstakeholdersofKEFHoldings. Explainingthisstrategy,Prashant statedthat“thedecisiontoconfine KEFInvestmentstointernal stakeholdersunderscorestheir commitmenttoaligninginvestment strategieswiththedistinctriskprofiles andobjectivesoftheorganization.”

Eachinvestorhasindividualrisk tolerancesandinvestmentpreferences thatmaynotmatchthoseofthegeneral

public.Hefurtheremphasizedthat“by maintainingexclusivity,theycan customizetheirinvestmentapproachto meetthespecificneedsoftheir stakeholderswhilemitigatingpotential reputationalrisksassociatedwith broaderpublicinvolvement.”

Prashant'sunderstandingshighlight KEF'sfocusonensuringtheir investmentstrategiesalignwiththe uniqueriskappetitesoftheir stakeholders.BykeepingKEF Investmentsexclusivetointernal stakeholders,theycantailortheir investmentapproachtomeet stakeholders'specificrequirements whileproactivelyprotectingthe organization'sreputationfromrisks thatcouldarisefrompublicexposure.

DrivingStrategicDecision-Making

Inhisrole,Prashantassertsthatheacts asafacilitatorforstrategicdecisionmaking,utilizinghisexpertisein financialanalysisandbusiness planning.WorkingcloselywithMr Faizalandtheboard,heplaysakey roleinpromotingandimplementing strategicinitiativesacrossdifferent businesssectors.Throughofferingindepthinsightsandaligningfinancial forecastswithorganizationalgoals,he assumesacrucialpositioninfostering sustainablegrowthandvaluecreation.

Hestatesthathisroleinvolves facilitatingstrategicdecisionsby leveraginghisskillsinfinancial analysisandbusinessplanning.

CollaboratingcloselywithMr.Faizal andtheboard,hecontributestodriving strategicinitiativesacrossvarious businesssectors.Byprovidingin-depth insightsandensuringfinancial projectionsalignwiththe organization'sobjectives,hefurther playsavitalroleinpromoting sustainablegrowthandvaluecreation forthecompany.

Headditionallyhighlightsthathis responsibilitiesrevolvearound enablingstrategicdecision-making throughhisproficiencyinfinancial analysisandbusinessplanning.In closecoordinationwithMr.Faizaland theboardmembers,heactively supportsthepromotionand implementationofstrategicendeavours spanningmultiplebusinessverticals.

CareerChallengesandTriumphs

Throughouthiscareer,Prashanthas encounteredsignificantchallenges. Reflectingontheseexperiences,he sharesthatoneofthemostnotable hurdleswasnavigatingtheonsetofthe COVID-19pandemic,whichbrought majordisruptionstoglobalmarkets. Despitethevolatility,their commitmenttodisciplinedrisk managementallowedthemto effectivelyhandlethechallengesand emergeresilient.

Onabroaderscale,balancingthe complexitiesofcashflowmanagement andfundingdiversebusinessventures hasbeenanongoingeffort. Nevertheless,byprioritizingstrategic investmentsandseizinggrowth opportunities,theyhavesuccessfully overcometheseobstaclesandachieved remarkablesuccess.

GrowthThroughMentorship

Forhim,theKauffmanmentorship programprovedtobeaneffective

Prashant's observations highlight the ingenious design of this model, where the prosperity of the business ventures directly enables the expansion of charitable efforts. The success of the investments becomes the catalyst for creating meaningful change and making a lasting difference in the lives of those the organization serves.

experience,onethatsharpenedhis professionaldevelopment.Hisactive involvementinthisesteemedinitiative providedhimwithanopportunityto engagewithprominentinvestorsand entrepreneursfromaroundtheglobe, cultivatingmeaningfulconnectionsand expandinghisprofessional relationshipsinremarkableways.

Throughtheprogram'scollaborative learningenvironment,Prashantgained invaluableinsightsthatultimately formedhisevolutionasaninvestment strategist.Engagingininsightful discussionsandexchangingdiverse experienceswithhismentorsand peers,hewasabletocultivatea multifacetedperspectivethat significantlyenhancedhisdecisionmakingabilities.

TheInterconnectedGrowth

Thisdynamicrelationshipbetween KEFHoldings,KEFInvestmentsand theFaizal&ShabanaFoundationisa mutuallyreinforcingsystemthat fostersbothbusinessgrowthandsocial impact.

Thisintegratedsystemisbuiltarounda circularflowofresources.Theincome frominvestmentssupportsnumerous charitycauses,whichinturnpromotes thecreationoffirmswithintheKEF network.Astheinvestedcompanies prosperandprovidehighreturns,the cycleofexpansionandreinvestment accelerates,resultinginapositive feedbackloopthatdriveslong-term effects.

Prashant'sobservationshighlightthe ingeniousdesignofthismodel,where theprosperityofthebusinessventures directlyenablestheexpansionof charitableefforts.Thesuccessofthe investmentsbecomesthecatalystfor creatingmeaningfulchangeand makingalastingdifferenceinthelives

ofthosetheorganizationserves. Thisintertwinedprocess,Prashant believes,holdsgreatpotentialto continuedeliveringsignificantbenefits forsociety Theself-sustainingnature ofthecycleensuresasteadyflowof resourcestofuelbothbusinessgrowth andphilanthropicinitiatives.By leveragingthesynergiesbetweenits investmentarmandcharitablearm, KEFhasdemonstratedanexceptional abilitytocultivateavirtuouscycleof expansionandimpact,settingan exampleforotherstofollow

EmpoweringFinancialLiteracyfor All

Hefirmlybelievesthatmasteringbasic financialskillsisessentialfor managingthechallengesoftoday's world.Prashantispassionately dedicatedtoclosingthedisparityin financialeducation,especiallyamong youngerpeople.Rightnow,he's concentratingonteachingthese principlestohisownkids,buthis ultimateaimistoextendhispassionby creatingcomprehensivefinancial educationprogramsthatreacha broaderaudience.Heenvisionsa platformwhereindividualsofallages canaccesshelpfulguidanceon attainingfinancialindependenceand makinginformedfinancialdecisions.

Hefurtherrecognizestheimportance ofequippingindividualswiththe necessaryknowledgeandtoolsto managetheirfinanceseffectively.By addressingthedisparityinfinancial literacy,heaimstoempowerpeopleto takecontroloftheirfinancialwellbeingandmakeinformedchoicesthat leadtolong-termfinancialstabilityand success.

FindingJoyinFamilyandNature

Prashant'sfacelightsupasheshares, "Thesheerdelightofmydaysisfound

inthesimplejoysofbeingwithmy children,Aadya&Aarya,age13and 11."Thesemomentsofconnection bringhimimmensedelight,whether it'sputtingonalivelypuppetshow, engagingindeepconversations,or simplyenjoyingacupofhotcocoaand coffeetogether.Throughthese interactions,heisabletoseetheworld throughtheireyes,fosteringa relationshipthatgoesbeyondthe traditionalfather-figureandintothe sphereoftruefriendship.

Inadditiontothejoyhefindsinhis family,Prashantalsoderivesasenseof peacefromphysicalactivitieslike playingbadmintonandgoingonhikes. Thesemomentsinnatureprovidehim withvaluableopportunitiestounwind, recharge,andforgeadeeper connectionwiththeworldaroundhim.

TeachingsonTime,Investments,& FinancialLiteracy

Throughaclevercomparison,Prashant impartsacruciallessonaboutthetrue valueoftime.Helikenstimetocoins, emphasizingthatoncespent,they cannotbereplaced.Thispowerful metaphorunderscorestheimportance ofinvestingtimewisely,whetherit's nurturingrelationships,prioritizing health,orpursuingknowledge,for theseinvestmentsyieldlong-term benefits.

Prashantisalsodedicatedtoeducating hischildrenontheprinciplesof financialliteracyandresponsible investing.Hebelievesthatinstillingan understandingofsoundfinancial practicesatanearlyagewillempower themtomakeinformedchoicesthat leadtofinancialstabilityandsuccess.

Byincorporatingtheseteachingsinto hisfamilylife,heexhibitsabalanced approachtobuildinghischildren's personalandfinancialfutures.

Heunderstandsthatprovidingchildren withthecorrectmindsetandabilities nowwillserveasasolidfoundation fortheirfuturepath,allowingthemto negotiatelife'scomplexitywith confidenceandforesight.

IntentionalApproachtoTime Management

Prashant'sapproachtotime managementisguidedbyadeep understandingofhisvaluesandgoals. Hisfocusonunderstandingthevalue chainofeachcompanyofinterestand itscorrespondingbusinessrisksgive himclarityonthepitfallsthatitmaybe susceptibleto,makinghisinvestment decisionamoreinformedone.

Hisemphasisonpersonalgrowthand developmentduringhistimeaway fromworkhascontributedtohiswellroundedandadmirablepersona.

Partakingindiscussions,readingupon hisinterests,andexploringnewideas tostimulatehismindandexpandon knowledgearehisapproachesto productivityinhispersonallife.Every momentispurposefullyand intentionallyspent,ensuringthathis timeisutilizedinamannerthattruly alignswithhisvaluesandlong-term aspirations.

WordofWisdom

"Ibelieveweoftenunderestimateour potentialinthelongrunwhile overestimatingourabilitiesintheshort term.It'sessentialtoenvisionour aspirationswithlong-termdedication, sodreambigandpursueyourgoals relentlessly."–PrashantMehta!

the Chairman's EyesThrough

"Marking a profoundly proud moment for all of us at KEF Holdings as we celebrate the remarkable recognition of Prashant, our Chief Investments Officer, among the world's top CIOs. For the past 13 years, he has been an integral part of the KEF family, infusing our journey with his passion, wisdom, and unwavering dedication. To see him recognized among the world's top CIOs fills us with immense joy and gratitude. His leadership has not only shaped our investment strategies but has also enriched our culture with warmth, integrity, and a relentless pursuit of excellence. Congratulations on this well-deserved honor!" – Mr. Faizal E. Kottikollon, Founder & Chairman of KEF Holdings

How do Chief Investment Officers Stay Ahead of Market Volatility

Marketvolatilitysimplymeansthevariabilityor

fluctuationsinfinancialassets,suchasstocks, bonds,andcommodities.Itcansometimesbe suddenanddramaticduetodifferentkindsofeconomic news,politicalevents,orchangesininvestorsentiment.

Itiscertainlynoteasyforthoseinvestors,particularly portfoliomanagers,tonavigatetheseupsanddowns.The CIOnavigatestheorganizationinuncertaintimeswhile alsosafeguardinginvestmentstrategiesthatprovetobe robust.RoleofaChiefInvestmentOfficer

ACIOistheheadofinvestmentforanyorganization;hisor herjobentailsmanagingtheorganization'sinvestments, oversightofitsportfoliomanagement,aswellas forecastingmarkettrends,identifyingrisks,andthen makingtheoptimumdecisionstoallowforreturns maximizedandlossesthereofminimized.Withthe changingglobaleconomy,achiefinvestmentofficerhas alwaysbeenrequiredtobeaheadofchangesinmarket volatilitiestoprotectone'sinvestmentsaswellasmeetthe needsoffinancialgoals.

StrategiesforManagingMarketVolatility

TherearemanywaysthroughwhichCIOsmanagemarket volatility.Thisisnotonlyaboutbeingreactivetochanges butproactiveaswell.HerearethekeystrategiesthatCIOs embracetokeepahead:

Diversification

Diversificationisoneofthemostimportantstrategiesin investmentmanagement.Spreadinvestmentsacrossmany assetclasses,rangingfromstocks,bonds,realestate,and commodities,andreducetheirexposuretothespecificrisk thatparticularinvestmentmightpose.CIOscanreducethe samelevelofriskthatonetypeofinvestmentwillhave overadiverseportfolio,upto30%,asresearchby Vanguardshows.Inthisscenario,ifoneassetclass performspoorly,othersmayperformwell,balancing potentiallosses.

ActiveManagement

Duringextremelyvolatileperiods,thepassivestrategies maynotbeabletograbthecontrol.TheCIO'scontinuously remainactiveintheirmanagementpractices,astheyare alwaystrackingthemarketconditionsandcontinue changingrespectiveportfolios.Inthisstrategy,theymay leverageshort-termmarketmovements.Researchfrom Morningstarfoundthatduringsuchtimes,actively managedfundsoutperformedthecorresponding benchmarksby1.5%.

RiskAppraisalandMitigation

Goodriskmanagementisoneoftheessentialtoolsfor maneuveringvolatility.CIOsusequiteafewtoolsand

modelstoevaluatetherisksembeddedinvarious investments.Stresstestingisoneofthetechniquesusedto mimicwhatportfoliosmayexperienceintheeventof extrememarketsituations.Withpredictivevulnerabilities, theCIOhastheconfidenceandopportunitytochoose whethertobuyorselltheassetsbeforehand.

MakingUseofTechnologyandDataAnalytics

Today,technologyassumesahighimportanceininvestment managementinthelightofthedigitalrevolution.CIOswill usetheadvancedcapabilitiesofdataanalyticsandartificial intelligenceformakingsenseabouttrendsinthemarket andbehaviorsofinvestors.Forexample,predictive analyticscanstudyanypatternsandassumefuturemarket movements.Infact,70%offinancialfirmsareinvestingin dataanalyticscapabilities,reportedDeloitte.

KeepingUp

TheCIOsoughttobeawareofanyglobaleconomictrends, geopoliticalevents,andregulatorychangesthatinfluence themarkets.MostsuccessfulCIOsholdconferencesofthe industryregularly;theyspeakwitheconomists,andalso subscribetofinancialreports,whichenablethemtokeep abreastwithcurrentevents,thusmakingtimelydecisions thatagreewiththeirinvestmentstrategy.

EstablishingGoodRelations

AnotherthingaCIOmustdoisnetworking.Themore networkingwithotherfinancialprofessionals,beitwith analysts,brokers,oreconomists,willyieldmoreideas aboutthemarketconditions.Workingaspeerswithother personswillenablesharingofknowledgeandstrategiesthat couldbettertheirinvestmentapproaches.

TheRoleofEmotionalIntelligence

WhilethesuccessofaCIOiscontingentontechnical know-how,emotionalintelligenceisalsorequiredto manageinvestmentportfoliosduringturbulence.A familiaritywithinvestorpsychologyhelpstheCIOpredict howmarketpsychologywouldchangewithrespecttonews andevents.Inthismanner,theycangoaboutmaking rationaldecisionsinsteadofreactingorimpulsivemarket moves.

GlobalEventsImpact:

Geopoliticaleventsarestilloneofthemostsignificant reasonsforaspikeinmarketvolatilities.TheCOVID-19 pandemicwassuchoneexample,whichsawadrasticshift inworldfinancialmarketstoalargeextent.Asthemarket fellsharperandreboundedshockinglyquickly,CIOshadto reassessandrefocustheirstrategies.InternationalMonetary Fundstatisticsindicatedthattheglobalstockmarkets plummetedaround34%onaverageduringMarch2020but reboundedoverafewsucceedingmonths.

Geopoliticaltensionsalsocanbeacauseforuncertainty withinthemarkets.Tradewarbetweennationsorsudden riseofanationcanbecomeareasonforsuddencommodity orcurrencypricefluctuations.Inthatcase,oneneedstobe verysharpandresponsiveasaCIO.

Inafewwords,ChiefInvestmentOfficersplayavery importantroleinguidingthecomplicationofmarket volatility.Someofthemosteffectivestrategiesadoptedby themarediversification,activemanagement,risk assessment,leveragingtechnology,stayinginformed, buildingrelationships,andexercisingemotional intelligenceintheirturbulenttimesofportfolio management.

Becauseofchangingeconomicsandspontaneousevents, globalmarketswillcontinuechanging,andthelong-term prosperityininvestmentwillbereliantontheabilityofthe CIOstoadapt.Theirskillssafeguardassetsanddevelopthe potentialoftheorganizationinuncertaintimes;thus,the roleoftheCIOsispricelessinafinanciallandscape.

How do Chief Investment Officers Balance Short-term and Long-term Goals

TheChiefInvestmentOfficersare,infinance,

responsibleforensuringthatanappropriate investmentstrategyisfollowedbyany organization-frompensionfundstoprivatewealth managementfirms-includingmutualfunds.Theirrolesare complexanddiverseinnature,whichinvolvestrikinga balancebetweenreturnsforshortperiodsoftimeandlongtermobjectives.

This article looks at how CIOs navigate this daunting environment to ensure that their organizations are competitive as well as ensure sustainable growth.

UnderstandingtheTwo-facedFocus

CIOsfaceauniquechallengeinstrikingabalancebetween short-termfinancialperformanceandlong-termgrowth. Short-termgoalsalwaystendtomaximizereturnsovera giventimeframe,typicallymeasuredinperiodsofmonths toyears.

Suchgoalsarebecomingincreasinglyhostagetomarket trends,economicconditions,andinvestorsentiment.Long termgoals,fortheirpart,mayrequiremeasuresthatmay takeevenyearsordecadestobematerialized:developinga diversifiedportfoliothatisimmunetothefiscalvagariesof themarketwhileworkingaccordingtothemaximofthe organization.

Theimplicationsofthisbalancecannotbeoverstated. Indeed,amajorfinancialresearchfirmreportsthat68 percentofinstitutionalinvestorsbelievealong-term investmentstrategyisnecessarytoachievesuperiorreturns.

Yet54percentalsosaidtheyfeelashort-termpressure responsibilitydrivenbythemarketandstakeholders' expectations.

StrategicAssetAllocation

OneofthemostindispensableinstrumentsCIOsusein achievingthisbalanceisstrategicassetallocation.This allowsaninvestmentportfoliotobesplitoverassetclasses suchasstocks,bonds,realestate,andalternative investments.Byhedgingrisksfromfluctuatingmarkets, CIOspositionaportfolioforlong-termgrowth.

Forinstance,duringperiodsofeconomicinstabilityor whenamarketislikelytodepreciate,CIOsarelikelyto turnmoreconservativebyholdingbondsandcash equivalentsasawayofconservingcapital.Conversely, whenthemarketappearstobebullish,theyincreasetheir equityoralternativeinvestmentallocationsfor monetizationofshort-termbenefits.Thisisthecasebecause theymayflexiblyadjusttheirstrategiesinlinewith prevailingmarketconditionsandstillattainlong-term goals.

RiskManagement

Effectiveriskmanagementisanothercriticalaspectof balancingshort-termandlong-termgoals.Thereisaneed toconstantlymonitorandadjustrisksconnectedwithan investmentdecisionbytheCIO.Suchconsiderations,apart frommarketrisks,alsoincludecreditrisk,liquidityrisk, andoperationalrisk.

Toreducetheserisks,manyCIOsimplementsuperadvancedanalyticaltoolsandmodelsthatcouldpredict possibleoutcomesagainstavarietyofscenarios.For example,stresstestingcanclearlyillustratewhataportfolio mightdoinadverseeconomicconditions.Thefactof knowingthesepossibilitiesandtheirrespectiveeffectson short-termandlong-termobjectiveswillallowtheCIOto makedecisionsthatareinlinewiththeoverallstrategy

InvolvingStakeholders

Thatbalancecanbeachievedbymaintainingthatdepthof communicationwithallthestakeholders.CIOsneedto continuouslyinteractwithboardsofdirectors,investment committeesamongothersformutualunderstandingof investmentstrategiesplacedbeforethem.Inthatregard, communicationensuresthatexpectationsonshort-term performanceandlong-termgrowtharerealistic.

Stakeholdersoftenhavecompetingpriorities.Somewould advocateforaquickreturnoninvestmentinorderto servicetheircashflowrequirementsorforperformance reviews.Otherswouldinsistonamorepatientapproach thatseekssustainablegrowthovertime.SinceCIOs provideanenvironmentinwhichopendiscussioncantake placebetweenstakeholderswithdifferingperspectives, balancingthedecision-makingismadepossible.

PerformanceMeasurement

Thisisanotherformofperformancemeasurementexercise inwhichtheCIOsneedtotreadcarefully,assuchmeasures traditionallytendtohighlightshort-termreturns.However, sometimesthesemetricshidetherealvaluefrom investmentstrategiesthatappearwheneveralong-term perspectiveisapplied.Inthisregard,manyCIOshave actuallyresortedtomoreextensiveperformance measurementframeworksthatconsiderbothshort-termand long-termindicators.

Hence,thoughanytypeofquarterlyreturnssignifiesa short-termsuccess,metricssuchascompoundannual growthrateorrisk-adjustedreturnarethosewhichwould provideforhowaninvestmentstrategyworksoveraperiod oftime.ThatmeansifCIOsmeldsuchmetricsanduse them,theywouldbeabletoprovidebetterappraisalofhow welltheywouldbeintermsoftheirabilitytodeliverboth thenear-termresultaswellaslong-termprosperity.

ControllingTimeandItsDynamism

Thenatureofthefinanciallandscapeisconstantlybeing alteredbynewtechnologies,byvirtueofchanging

regulatoryrequirements,orbynewdemandsfrom investors.Thismakesbeingstrategicagileachallengethat CIOshavetobalancechangewithbeingtruetotheirlongtermvision-arebalancingofassetallocationsorperhaps findingnewinvestmentsthattrackemergingthemes.

Forinstance,therecenttrendofsustainableinvestmentshas compelledmanychiefinvestmentofficerstoincludeESG componentsintheirprocesses.Researchfromaleading financialconsultancyrevealsthattoday,85%of institutionalinvestorsconsiderESGfactorswhen determiningwhichinvestmentstomake.Thatinitselfisa testamenttohowgraduallyyetsurelypracticesaregaining recognitionassustainableandhenceleadtobetterlongtermfinancialperformances.

Conclusion

AsalientchallengeofcontemporaryCIOsisbalancingthe short-andlong-terminterests.Withassetallocation remainingattheheartofthisundertaking,effectiverisk managementprocesses,meaningfulstakeholder engagement,adoptionofall-encompassingperformance measurementframeworks,andopennesstochangeremain keytosuccessfulnavigationofthiscomplexfinancial environment.

Ultimately,successfulinvestmentstrategiesdependupon theabilitytobalanceshort-termfinancialperformancewith sustainablegrowth.Itisherethataninvestmentstrategy willeithermakeorbreakanorganization.Inmarketsthat continuetoshift,andinvestorexpectationsthatcontinueto change,theCIOwillbeinapositiontohelpdeterminethe futurecourseofinvestmentmanagement.

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