Research Publications Archive

Playing Defense in a Low-Rate Environment

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Investors have predominantly relied on developed markets sovereign bonds for defense in balanced portfolios, but low rates have diminished their diversification characteristics. We find that a diversified basket of “defensive” assets has provided comparable diversification characteristics to developed markets sovereign bonds historically. While this basket may not solve all challenges associated with today’s low-rate environment, we view it as better equipped than developed markets sovereign bonds to defend balanced portfolios during future periods of equity market stress.

Review of Market Performance: Calendar Year 2020

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The onset of the COVID-19 pandemic caused steep declines in risk markets in first quarter 2020. Safe-haven assets, such as core sovereign bonds and gold, performed strongly during this period and have held on to much of their gains. Large-scale intervention by both monetary and fiscal authorities eventually put a floor under risk markets, driving rapid recoveries and pushing equity markets to new highs.

Private Company Operating Metrics: Global Analysis

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Analyzing operating metrics can provide insights into the process by which private equity managers execute their strategy. This update to our annual report includes comparisons of private equity globally (roughly 9,600 companies in total) with public peers, as well as regional comparisons for approximately 5,000 US-based companies, more than 2,400 European companies, and more than 1,600 Asian companies acquired by PE firms from 2000 through 2019.

Outlook 2021: A Year of Healing

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As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.

China’s Onshore Bond Market: An Update

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Interest in China’s onshore bond market has been rising steadily since 2016 when the market was thrown open to foreign investors. Foreign holdings of onshore bonds now exceed US$400 billion and are set to rise further. We think the market warrants further attention from global investors, given Chinese bonds continue to offer higher yields and lower correlations than those found in other major bond markets, with the potential to bring portfolio diversification benefits.

Sustainable and Impact Investing 2020: Insights and Perspectives

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Overview Of the 202 Cambridge Associates clients that responded to the 2020 survey, 100 reported engaging in sustainable and impact investing (50%) and an additional 23 reported engaging in ESG integration and/or impact investing, though they answered “no” to the SII engagement question, bringing the total to 123 (61%) reporting engaging in sustainable and impact…

College and University Flash Statistics Report: Fiscal Year 2020

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The College and University Flash Statistics Report provides a first look at the results of our 2020 College and University Investment Pool Returns survey. Included in the analysis are a summary of investment pool returns and asset allocation for 159 colleges and universities. Additionally, the report provides detailed data by institution on asset allocation and…