Comparative Asset Allocation and Total Return: UK Foundations and Endowments
Our biannual report summarizes asset allocation and total investment performance for 20 of Cambridge Associates’ UK foundation and endowment clients.
Research Publications Archive
Determining the Right Price: A Wealth Management Cost Framework for Families
Costs are an important consideration when devising an overall wealth management strategy. Each family’s wealth management cost formula is different. Various tools and insights are available to help them make informed decisions about how to meet their unique service requirements and investment goals at a reasonable cost.
Buying India’s Growth Story, But Not Today
India has arguably the most compelling long-term growth opportunity in the global economy today. But should investors buy the hype surrounding Indian equities? We think India’s bright economic prospects have the potential to drive strong equity market returns in the long run; however, we do not think Indian equities offer a compelling overweight over a shorter-term, tactical horizon. Investors interested in India’s growth story from a strategic perspective should build allocations through high-quality public and private managers, preferably toward active managers on the public equity side.
Asia Insights: Navigating Higher Rates and Volatility
In this edition of Asia Insights, we highlight areas in public equities, private investments, real assets, and hedge funds where we continue to find opportunities, despite the current environment of higher rates and market uncertainty.
Is This a New Era for Private Investments?
No. We argue that after macro conditions helped propel the private investment industry to temporary heights, today’s environment has ushered in a “back to normal” era.
Investors Should Direct Their Attention to Private Lending
The current market turmoil has created an attractive environment for direct lenders. The dislocation in the public markets has driven borrowers to private lenders that can demand better pricing and lender-friendly terms. As a floating-rate asset, lenders are benefiting from the sharp increase in rates and all-in yields are in the low double digits.
Decades of Data: United Kingdom 1900–2022
The 2022 UK edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds.
Should Investors Lean Into Quality Equities?
Yes. Aggressive central bank tightening has caused economic growth to slow in Europe and the United States, and we expect that the recent banking sector stress will further weaken economic growth. Now is the time for investors to tactically overweight quality equities, given this style has tended to outperform broad equities during periods of economic contraction.
European Bank Stress Adds to Economic Growth Challenges
On 20 March, investors awoke to news Swiss authorities had used emergency measures to push through a hastily arranged merger of Credit Suisse and UBS. Following two recent bank failures in the United States, the announcement raised questions over the health of European banks and the broader economy.
Spending Policies and Practices: Fiscal Year 2022
Annual distributions from the endowment are a source of supplemental operating revenue for most endowed institutions. An institution’s endowment spending policy provides a basis for the calculation of the annual distribution, serving as a bridge that links the long-term investment portfolio and the enterprise. The data and analysis in this report review the various spending rule types used among our endowment clients. Also included are analyses on the endowment’s support of operations and effective spending rate.