Yes, we expect US small-cap equities will outperform US large-cap equities this year. Our view is based on the belief that the large valuation spread that exists will likely narrow and that large company earnings are likely more at risk of missing expectations than small company earnings.
Investors should use the entire investment toolbox to build diversified exposure to climate solutions.
Just one year after the best investment returns endowments had seen in decades, fiscal year 2022 brought about the most challenging market environment since the Global Financial Crisis of the late 2000s. Our annual survey-based report of 158 US colleges and universities includes commentary and analysis of investment performance, asset allocation, and related trends. We also review peer data on topics such as investment policy, portfolio manager structures, spending, and investment office staffing and governance.
While climate awareness is essential for all investors, others seek to be more ambitious by adopting a net zero goal for their portfolios. This paper explains the rationale for doing so and outlines an approach for target setting and implementation. A net zero policy focuses on decarbonizing the real economy. Investors have two powerful levers to do this: (1) stewardship and engagement; and (2) climate solution investments.
Yes, it is likely that the “softish landing” implied by forward consensus earnings expectations will fail to transpire.
Our annual analysis comparing private equity globally with public peers.
This analysis includes our observations on key metrics by which private equity managers execute their strategy.
A growing number of institutions and families are choosing to spend down assets over a limited time, rather than investing in perpetuity. There are valid arguments for—and against—using a spend-down approach to achieve philanthropic and investment goals. This paper provides historical context for spend-down funds, considers nuances for achieving good governance, and suggests an approach for dynamic asset allocation strategy, with case studies as illustrations.
Yes. Markets will be less vulnerable to rising rate risk next year, as the aggressive tightening that has weighed on markets for much of 2022 has moderated more recently since inflation has slowed.
In our 2022 Sustainable and Impact Investing Survey, we reached out to Cambridge Associates clients for insights into how investors are thinking about sustainable and impact investing, as well as to identify changes in the field over the past two years and to understand possible future trends. Of the 144 clients who responded, 93 reported engaging in sustainable and impact investing, and this chart book explores trends in the investment structure, implementation strategies, and governance and measurement of sustainable and impact investing.