Capital Allocators – Inside the Institutional Investment Industry Charles Van Vleet – Thinking Differently with Pensions at Textron (Capital Allocators, EP. 283)
Nov 28, 2022
Charles Van Vleet, the CIO of Textron, oversees $15 billion in pension assets and is known for his innovative approach to institutional investing. He discusses the importance of cognitive diversity in leadership and investment strategies. Van Vleet emphasizes a paradigm shift from traditional liability-driven investing towards a focus on absolute returns. He also shares insights on navigating co-investing challenges and the significance of mentorship in both finance and personal growth, all while challenging conventional asset classifications at Textron.
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Early Career
- Charles Van Vleet worked at Mitsui Bank selling CDs at 18% during the Volcker years.
- He later traded Japanese Government Bonds (JGBs) at Nomura Securities, calling them the "widowmaker".
Interest Rate Perspective
- Witnessing high interest rates (18%) early in his career shaped Van Vleet's perspective.
- He observed the steady decline of rates since the Volcker era, leading to a period of low volatility.
Financial Innovation
- Van Vleet emphasizes that financial innovation often repackages existing products.
- He views many alternative investments, such as infrastructure, as variations of traditional asset classes like real estate.