The Plunge in Digital Asset Prices Highlights the Industry’s Volatility
Investors should not be surprised by the recent volatility across digital assets.
Research Publications Archive
Fed Raises Rates and Begins Balance Sheet Run-off
Yesterday, the Federal Reserve announced it would raise the target range for the Fed funds rate 50 basis points (bps) to 0.75%–1.00%. It also formalized plans to reduce its $9 trillion balance sheet starting June 1, with an initial monthly cap of $47.5 billion, rising to $95 billion per month on September 1.
Charting New Waters: What Pension Plan Sponsors Should Know About Digital Assets
Blockchain technology and digital assets could disrupt the way many of the companies in a pension plan’s current investment portfolio do business. Pension plan sponsors can benefit from an increased understanding of blockchain technology and its potential portfolio implications. In addition to providing a general overview of how blockchain technology and digital assets investments work, this paper answers questions on related challenges and developments for plan sponsors to consider.
Should Investors Go Long Duration Following This Year’s Sell-off in US Treasuries?
No, we do not recommend that investors go long duration in fixed income portfolios. The uncertain inflation outlook and potential for more aggressive policy tightening suggest yields could rise further.
Emerging Markets Equities: It’s Not All About the Fed
The Federal Reserve is poised to continue lifting interest rates this year. Many investors tend to view tightening Fed policy as a headwind for emerging markets (EM) equity performance and may be tempted to dial back exposure to the bloc, but market history is an inconsistent guide when gauging how EM equities will perform when the Fed raises rates. In this paper, we outline several reasons EM exposures could prove to be diversifying as the current cycle plays out.
Are High Oil Prices a Threat to Investors?
Overall, we view high oil prices as another headwind for expensive growth stocks and potentially European markets, which are more exposed via their reliance on Russian energy exports.
Higher Rates Are a Headwind, but US Housing Rests on Solid Foundations
The US housing market has been on a tear in recent years, supported by low interest rates, favorable supply/demand dynamics, and a recent boost from the pandemic-related demand for more space. This publication provides an update on some of the macro forces supporting housing and describes different asset classes that offer exposure to US housing.
Endowment Radar Study 2021: A Growing Role
Our third annual Endowment Radar Study reflects the growing role of the endowment in the private college and university business model. This year saw notable growth in the endowment’s support of the budget and its contribution to balance sheet health.
US Mid- to Large-Cap Equity Manager Performance: 2021
For the eighth straight year, the majority of active mid- to large-cap equity managers underperformed in 2021.
Should the Latest Climate Research Catalyze Change in How Investors Think About Risk?
Yes. According to a recent report released by the Intergovernmental Panel on Climate Change, “climate change is a threat to human well-being and planetary health,” and the window of opportunity to “secure a livable and sustainable future for all” is rapidly closing.