How Does the Daily Overlay Work?

The daily overlay is common on large pension and foundation portfolios. It's going to be super useful in highly volatile environments, he says. The cash is essentially the notional and the overlay manager is using different futures positions to create the indices that we've asked them to create.

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Shannon O’Leary is the Chief Investment Officer of the Saint Paul & Minnesota Foundation, a $2 billion community foundation. Since joining the Foundation in 2019, Shannon has thoughtfully implemented DEI and ESG investment strategies to create a portfolio that supports grant creation and includes investments that are in line with the Foundation's mission.

Shannon will call out the elephant in the room (and the elephant hidden in the room next door). Her emotional acuity and analytical prowess have served her investment teams well throughout her career—from sharing grades on manager DEI surveys to unconventional methods for manager due diligence. Shannon's proactive approach to resolving misalignment is underscored by an acute awareness that there will always be unforeseen challenges.

"Wherever you show up, show up as yourself . . . show up as authentically "you" as you can be. And that generally will bring out a more authentic version of the person that you're speaking to." In this episode, you will learn the following: 1. How the Saint Paul & Minnesota Foundation implements DEI and ESG strategies to maintain a portfolio aligned with the Foundation's mission

2. How the Foundation works with managers to help them grow into true partners of the Foundation's mission

3. What strategies Shannon O'Leary employs to detect when something is "not quite right" in conversations with asset managers

Shannon began her career as an analyst at Dearborn Partners in Chicago after earning a bachelor’s degree in economics with a concentration in high-energy physics from the University of Wisconsin—Madison. She recently started publishing a newsletter, Say it Out Loud, that looks at how to initiate change in the investment industry.

Resources:

· Say It Out Loud | Have We Reached Peak Stupid?

· Say It Out Loud | How to Not Get a Second Meeting: A Guide

· Say It Out Loud | Why (Actually) Looking at Your DEI Survey is a Good Idea

Other Episodes You’ll Enjoy:

· Jennifer Heller (Brandywine) | Investing Renaissance

· Dusty Granet (Green Trading Capital) | Green Trading

· Patricia Lizarraga (Hypatia Capital) | The Female Factor

Chapter Summaries:

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Emotional Intelligence

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