Though there continue to be concerns regarding high equity valuations, inflation, rates, and a range of other macro risks, asset allocators see strong opportunity for growth.
As institutions look towards long-term investment opportunities, many have high allocations to alternatives.
Many cite renewables, venture, and growth as areas of opportunity in private markets demonstrating the balance between return potential and portfolio alignment.
As the recovery progresses, healthcare systems expect economic and policy normalization in 2022 and beyond. A majority of respondents have a favorable economic outlook.
Do you think the US economy will enter a recession in the next three years?
When, if at all, do you expect inflation and/or deflation will be a concern in the US?
Healthcare systems are largely optimistic on risk assets for 2022, with alternatives and global equities consistently ranking as top performers for the coming year. Similar to the past 2 years, investors remain bullish on private assets.
Please select the three asset classes you believe will deliver the best performance in 2022.
Expected returns for long-term investment pools were generally higher than those for defined benefit plans due to a larger allocation to equities and alternatives.
What is your expected return for each of the following pools?
Over the next 12 months, do you plan to change your allocation to the following investment strategies in your Unrestricted Cash & Investments?
The expected return on assets presented herein have been provided by Survey respondents and are for informational purposes only, as of the date of this presentation. There can be no assurance that the expected returns will be achieved.
This does not constitute investment advice regarding any defined contribution program. ERISA considerations may apply.
Healthcare systems are increasingly incorporating climate and diversity considerations in their investment processes, driven by their Executive Office / Leadership and Investment Office.
Who drives the decision-making process for the development of a climate and diversity policy?
Will you be making commitments to renewable investments in the next two years?
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THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.
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Hedge funds and other private investment funds (collectively, “Alternative Investments”) are subject to less regulation than other types of pooled investment vehicles such as mutual funds. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Alternative Investments are not required to provide periodic pricing or valuation information. Investors may have limited rights with respect to their investments, including limited voting rights and participation in the management of such Alternative Investments.
Alternative Investments often engage in leverage and other investment practices that are extremely speculative and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested. There may be conflicts of interest relating to the Alternative Investment and its service providers, including Goldman Sachs and its affiliates. Similarly, interests in an Alternative Investment are highly illiquid and generally are not transferable without the consent of the sponsor, and applicable securities and tax laws will limit transfers.
Definitions of terms used in the above can be found below.
Alternatives: Investments in any asset class excluding public equities, public fixed income, or cash and short-term securities.
Public Equities: Equity securities that are investible via public markets.
Public Fixed Income: Fixed Income securities that are investible via public markets.
Cash and Short-Term Securities: Cash and cash equivalents and short-term investments in marketable securities.
Conflicts of Interest
There may be conflicts of interest relating to the Alternative Investment and its service providers, including Goldman Sachs and its affiliates. These activities and interests include potential multiple advisory, transactional and other interests in securities and instruments that may be purchased or sold by the Alternative Investment. These are considerations of which investors should be aware and additional information relating to these conflicts is set forth in the offering materials for the Alternative Investment.
Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public sources.
This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. This material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.
Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Goldman Sachs Asset Management to buy, sell, or hold any security. Views and opinions are current as of the date of this document and may be subject to change, they should not be construed as investment advice.
Economic and market forecasts presented herein reflect a series of assumptions and judgments as of the date of this presentation and are subject to change without notice. These forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Goldman Sachs has no obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. This material has been prepared by Goldman Sachs Asset Management and is not financial research nor a product of Goldman Sachs Global Investment Research (GIR). It was not prepared in compliance with applicable provisions of law designed to promote the independence of financial analysis and is not subject to a prohibition on trading following the distribution of financial research. The views and opinions expressed may differ from those of Goldman Sachs Global Investment Research or other departments or divisions of Goldman Sachs and its affiliates. Investors are urged to consult with their financial advisors before buying or selling any securities. This information may not be current and Goldman Sachs Asset Management has no obligation to provide any updates or changes.
Date of First Use: March 2, 2022.