Fed Hikes Another 0.75% and Signals More Tightening to Come
The Federal Reserve announced its third consecutive interest rate increase of 75 basis points (bps) today, bringing the Fed funds target range to 3.00%–3.25%.
Research Publications Archive
Building a Lasting Family Legacy in Asia: Values, Governance, and Policy
As next gen investors and principal wealth owners think about meeting both near- and long-term wealth management challenges, they should consider three core pillars of building a lasting family legacy: shared values, strong wealth governance, and a clear, long-term investment policy.
Ethereum’s Merge Is a Transformational Event, but Don’t Expect Digital Assets Prices to Come Out of Their Slump
A major Ethereum blockchain software upgrade was successfully completed earlier today, marking a landmark event for the digital assets industry. The upgrade, known as the “merge,” changes how transactions are verified on Ethereum’s blockchain and dramatically improves its energy efficiency. While this is welcome news, we doubt this means the rout in digital assets prices is over in the near term, as macro headwinds continue to be the most important factor driving prices.
Right-Sizing Private Investments for the Evolving Pension
Most defined benefit plans–including public, multi-employer, and even frozen corporate plans–can benefit from private investment (PI) strategies. Despite this, many plan sponsors still abruptly cut off PI commitments or do not optimize their usage as the plan matures. This paper explores how plan sponsors should utilize PI strategies within their toolkit and customize their composition over time to reflect a plan’s evolving goals.
Do Renewed COVID-19 Lockdowns in China Change the Outlook for Chinese Equities?
No. Despite the recent spate of lockdowns in China, we still anticipate some form of easing of the current zero-COVID policy and increased support for the economy following the Party Congress in October.
Is the United States in a Recession? Labor Market Focus
Currently, there is an active debate about whether the United States is in a recession. Two quarters of negative GDP fits one definition of a recession; however, the National Bureau of Economic Research looks at a greater expanse of data before making its assessment. In this note, we examine some of this data, dig into other line items in the national accounts, and look at historical trends in employment around recessions to further our understanding and put today’s labor market into context.
Does the Inflation Reduction Act Increase the Attractiveness of Clean Energy Investments?
Yes. The Inflation Reduction Act (IRA) will generate significant benefits for companies involved in clean energy. The bill is anticipated to provide almost $370 billion over the next decade to a variety of industries, including utilities, transportation, and manufacturers of products such as batteries and solar components.
The Growing Importance of Asia Equity Long/Short
Equity long/short investing is one of the most widely adopted strategies by hedge fund managers in Asia. Its importance has increased over time, and we believe that this strategy can play a key role within a global hedge fund portfolio. There have been several positive developments in recent years that build the case for investors to allocate to the strategy, including better market access, continued alpha opportunity, and a greater talent pool.
Do Municipal Bonds Still Have a Role to Play in Taxable Portfolios?
Yes. Munis still have value on an after-tax basis over the long term, and their near-term outlook has improved following the rise in yields and spreads during this year’s sell-off.
Foundation Annual Investment Pool Returns: Calendar Year 2021
Our annual survey-based report summarizes returns, asset allocation, and other investment-related data for 112 foundations for the calendar year ended December 31, 2021. Included in this year’s report are commentary and exhibits across six sections: Investment Portfolio Returns, Investment Policy, Portfolio Asset Allocation, Investment Manager Structures, Payout from the Long-Term Investment Portfolio, and Investment Office Staffing and Governance.