“Shanelle’s tireless work ethic, intuition for people and markets, diplomatic directness and growth mindset consistently enabled her success as an investor and leader in roles with increasing responsibility. Since joining as the managing director of public equities, Shanelle’s leadership has been a critical driver of our team’s success. Her strategic redesign of our approach to public equities added value through astute portfolio tilts and manager selection. She simultaneously led a collaborative team effort with human resources to create a talent strategy for the Kellogg Foundation Investment Office. Shanelle’s diverse experiences, leadership qualities and enterprise perspective make her a strong candidate for the NextGen list and future career opportunities. She will be a fantastic CIO!”
—Carlos Rangel, CIO, W.K. Kellogg Foundation
The CHIEF INVESTMENT OFFICER Editorial Team shared a dozen questions with all our NextGen nominees and asked them each to pick six to answer. Their answers informed our decision to include them as a NextGen. Below are the answers from Shanelle Brown.
CIO: What is the best way to bring more diversity to the financial industry?
Brown: If there is a true commitment to improving the diversity in our industry, I believe it’s imperative that we work as a collective. I’ve been encouraged in recent years with the expansion of organizations that support early-career professionals and students, contributing to a more diverse talent pool. However, I’ve noted that many GPs, particularly smaller or midsize firms, are often not fully informed about the organizations and resources available that can not only assist them in attracting diverse candidates, but also help foster an inclusive culture that allows that talent to thrive and remain in the industry. As allocators, we often exchange insights to support our important missions. In the spirit of partnership, we need to extend this collaboration to the firms that manage capital on our behalf and then hold ourselves and our partners accountable. I am proud to share the work of the Kellogg Foundation’s Expanding Equity program, which offers resources to support organizations at any stage of their DEI journey. Since 2019, we’ve had 30 private equity, financial services and investment management companies participate and more than 100 companies across 10 industries. This is work that we are committed to and ready to extend that support to others.
CIO: Which component of ESG-driven investing do you think will have the most influence on institutional investing going forward, and why?
Brown: Each component will remain important going forward. Independent of any personal views on climate change or social issues, these are critical areas that I believe investment leaders will need to address in both their portfolios and leadership. Whether it is a renewed focus on energy independence because of greater geopolitical conflicts, the transition to clean energy in response to climate risks or adapting to changes as Generative AI becomes more integral, environmental impacts are increasingly linked with financial outcomes, presenting both risks and opportunities. From a social standpoint, I believe business leaders and investors will have to navigate and manage more divisive times ahead, which could intensify the scrutiny and repercussions of decisions or actions. Least controversial, I believe there is a shared understanding among investors about the important role of robust governance.
CIO: What traditional and/or alternative asset classes do you think are most important for institutional portfolios, and why?
Brown: Long-biased public equity. I believe the current environment in private markets, where many are now experiencing some pain from reduced distributions, has emphasized or placed the spotlight back on public equity markets and the value of liquidity. While we remain committed to private markets long term, we continue to find exciting and compelling opportunities and investment partners within the public markets that we believe will be value-add to our investment returns over the long term. Furthermore, applying the collective investment insights to adopt tactical positions in public markets is an approach that we’ve leaned into and utilized effectively to both manage the risk of our portfolio and augment returns.
CIO: What investing decision have you made for your organization that you’re most proud of?
Brown: When I joined the Kellogg Foundation three years ago, our portfolio was heavily tilted to value, small cap and Chinese equities. One of my early initiatives was to persuade the investment team that the significant underweight to technology, specifically U.S. mega-cap companies, and maintaining a large over-weight to Chinese equities presented a significant risk. Once the team was on board, we neutralized the “MAG-7” underweight through a combination of a replication strategy and derivatives, scaled back our public China equity exposure by more than half (directly and via derivatives to benefit from a large drawdown) and adjusted our factor exposures for greater balance. These actions allowed us to be well positioned for the equity rally over the past two years and greatly contributed to the growth of our endowment.
CIO: Who in asset management (a person, not a firm) has most influenced your growth as an institutional asset manager?
Brown: My development both as an investor and a leader has been shaped by many, but my time at Exelon Corporation was especially pivotal. Former CIO Doug Brown, along with the current CIO of Constellation, Brian Andersen, provided what I refer to as my big break into institutional investing. Their guidance, engaging assignments, opportunities for growth and creating an environment where it was safe to learn from errors played a significant role in my career advancement. My approach to team-building, leadership, managing various stakeholder interests and organizing investment teams have all been profoundly shaped by my time spent learning from Doug. My experiences under their tutelage have been significant contributors in my career trajectory. The opportunity that I have today, to collaborate with Carlos Rangel and a brilliant team of investors to support the mission of the Kellogg Foundation, would not have been possible without their longstanding support. They are not only superb investors and leaders, but also incredible individuals.
CIO: What new skills do you think allocators need to be leaders in the field in the coming decade?
Brown: I believe that industry leaders will need to address two significant challenges: adapting to the innovations and advancements from generative AI technology and building and leading diverse teams. Cultivating a team enriched by cultural diversity, varied life experiences and professional and educational backgrounds will play an important role in achieving success. Professionals who have strong financial and investment expertise, augmented by technological savvy and a knack for fostering strong connections and relationships, will prove to have a strong competitive edge.
