Strategic Investor Engagement: Driving Stewardship for a Net Zero Future
To accelerate net zero objectives, investors are well placed to leverage their voices as asset owners through strategies for deeper engagement and stewardship.
Research Publications Archive
Currency Views and Valuations
This chart book examines historical currency momentum, valuation, and fundamentals in nine key currencies—US dollar (USD), British pound (GBP), euro (EUR), Swiss franc (CHF), Japanese yen (JPY), Australian dollar (AUD), New Zealand dollar (NZD), Canadian dollar (CAD), and Singapore dollar (SGD)—to help investors understand how these currencies behave against other major currencies.
Key Central Bank Policy Rates Approach Cyclical Peak
Over the past two weeks, central banks in the United States, United Kingdom, euro area, and Japan have all held monetary policy meetings. The communications following these meetings retained a hawkish bias, suggesting further policy tightening may be necessary—except for the Bank of Japan—however, additional interest rate hikes will likely be much less frequent for the remainder of this cycle. Despite this reality, we do not think major central banks will be quick to cut interest rates next year.
Six Things to Know About Co-investments
Investor interest in co-investing has grown in recent years, given the benefits for both general partners and limited partners. We answer six frequently asked questions about this strategic allocation.
Do Recent Upward Revisions to the United Kingdom’s GDP Mean the Outlook Is Brighter?
No. Although GDP revisions showing that the UK economy recovered more quickly and strongly from the COVID-19 period than was initially thought are welcome, the country faces headwinds to growth in the coming quarters. We continue to recommend holding UK equities at benchmark weights.
Will Japanese Equities Continue to Outperform?
No, we do not think it is likely that Japanese equities can meaningfully outperform in the near term, given growing headwinds from the slowing global manufacturing cycle, possible monetary tightening, and potential Japanese yen strength.
SEC Adopts Reforms Aimed at Enhancing Private Investment Transparency and Investor Protection
The U.S. Securities and Exchange Commission adopted the most extensive reforms for the private investment industry since the Dodd-Frank Act of 2010. The reforms include many noteworthy aspects that we, and the industry, are still reviewing closely.
Review of Market Performance: Fiscal Year 2023
Risk assets enjoyed mostly positive returns in fiscal year 2023. Equities rebounded as fears over the severity of a possible recession moderated. Emerging markets equities lagged developed markets as the pace of reopening in China disappointed. Bond performance improved as credit assets posted positive returns but developed markets sovereign bonds struggled. Real assets suffered due to higher interest rates and slowing demand.
Does Fitch’s Recent Ratings Downgrade of US Sovereign Debt Change Our View on Treasuries?
No, we continue to believe investors should hold US Treasuries in line with policy allocations. While the recent decision by Fitch Ratings to downgrade the sovereign credit rating of the United States added upward pressure on Treasury yields, we do not expect it will have a lasting impact.
US Limits Semiconductor, Quantum Computing, and AI Investments in China
Yesterday, US President Biden issued an Executive Order (EO) limiting US investments in China in three technology sectors—semiconductors and microelectronics, certain artificial intelligence systems, and quantum information technologies—in 2024 and beyond.