Alliance Global Advisors: Institutional Investor Perspectives
WHERE INSTITUTIONAL REAL ESTATE MEETS UNPRECEDENTED FEMALE LEADERSHIP.
In recognition of Women’s History Month, in March 2021, Alliance Global Advisors connected with leading female investment officers from three of the world’s most influential investors. The institutional real estate sector is a place where the voices of female and diverse talent remain underserved. Today, Alliance is confident the industry is progressing as leaders are taking strides to improve Diversity, Equity and Inclusion.
Heather Border and Jennifer Stevens, Co-Founders and Managing Partners of Alliance Global Advisors, continue to lead conversations with investors, investment managers and industry participants about the importance of building a diverse workforce. Recognizing that there are now more women investors, Jennifer and Heather are grateful to those who paved the path before them.
In addition to the dynamic women on Alliance’s Independent Advisory Board, Jennifer had the privilege of working alongside several influential female investment officers, consultants and investment managers over the last seventeen years. Jennifer noted her admiration for Chief Investment Officers such as Molly Murphy at Orange County Employees’ Retirement System, Liza Crisafi at San Diego City Employees’ Retirement System, Betty Tse from Alameda County Employees' Retirement Association and Janice Murphy at Kaiser Permanente – all left a lasting impact on her definition of success and determination to see more females and young women in investment and portfolio management roles. Some of the most challenging questions Jennifer faced as an investment consultant at Townsend were asked by women on the Boards or investment staff for leading global pension funds.
Heather recalls the impact of boardroom confidence, transparency and mentorship from Micolyn Magee at Townsend as defining moments in her career. Over the last 10-15 years, Heather witnessed the industry recognizing the female voice and thought process as essential to elevating investment management success, thus increasing the demand for female executives at every level. Heather believes in leading with transparency in all aspects of work to gain respect, trust and loyalty among industry leaders, and most importantly, mentorship, female leadership giving back time to female-focused organizations whose work supports those excited to continue to break barriers.
Alliance had the pleasure of discussing female leadership in investment with Julie Donegan, Real Estate Portfolio Manager at California State Teachers' Retirement System, Jennifer Wenzel, Investment Manager at Teacher Retirement System of Texas and Roberta Waxman-Lenz, Head of Real Assets at United Nations Joint Staff Pension Fund. These women collectively represent real assets under management of approximately $62 Billion and have diverse backgrounds in consulting, investment selection and investment management. These attributes make them uniquely qualified to dive deeper into the topic of DEI in the workplace.
YOU HAVE MASTERED COMMUNICATION WITH BOARDS, THOUGHTFUL INVESTMENT SELECTION AND THE SPIRIT OF PARTNERSHIP IN YOUR CURRENT ROLE. WHAT SKILLS ARE MOST IMPORTANT IN STRIKING THE BALANCE NECESSARY TO BE A SMART INVESTOR, A GOOD NEGOTIATOR AND A COVETED PARTNER?
Julie Donegan: Being a smart investor, a good negotiator, and a coveted partner, to me, center around a very simple yet often overlooked skill – listening, truly listening. In my mind that means not “talking” in your head or preparing a response while someone else is speaking. It means taking the time to consider what is being said and why it is being said and acting accordingly. As a smart investor, it is important to understand what you don’t know and to listen to others who know more than you so that you can make good well-informed decisions. Being a good negotiator also requires listening skills and when combined with approaching negotiations with positive intent, meaning that you are seeking to find a solution that works for both parties, is usually a solid foundation for good negotiation. Regardless, if you don’t listen to what the other party is saying, you can miss key needs or goals from their end. And finally, in my view, a coveted partner is one where you have a solid level of trust and understanding. I believe this trust stems from someone who meets their commitments and that begins with fully understanding the other partner’s needs which also starts with listening – full circle, if you will.
Jennifer Wenzel: Being authentic and direct. Coming into difficult situations with curiosity. Keeping the bigger picture in mind. Knowing when to use the leverage of your position but also knowing how to stay humble.
Roberta Waxman-Lenz: As a starting point, the reputation of your institution truly provides you the platform as a coveted partner. Always keep in mind that your professional behavior contributes to your institution’s reputation. You are fulfilling a role on behalf of your constituents (e.g., the beneficiaries of a pension plan), and so you owe it to your institution to stand behind them and represent them well.
The negotiation process is a chance not only to ensure good terms for your organization, but also a chance to develop a relationship with your counterpart. It’s a dance that allows you to probe their integrity and their ability to be responsive to your organization’s needs. It also allows them to see the serious approach you take to managing your portfolio and each investment. Use the negotiation process to hammer out important terms; but also keep in mind the importance of asking questions to understand the underpinnings of your counterparty’s perspective.
WHAT IS ONE THING YOU WOULD HAVE DONE DIFFERENTLY DURING YOUR CAREER, AND WHY?
Julie Donegan: At one point in my career, I left a firm because I felt that I was not being supported and that I did not have a voice at the company. I took the easier route of finding a different job and leaving. Looking back, I often wonder if I could have done something different in that situation.