Yes, investors should consider making tactical changes because of valuation differentials exacerbated by the COVID-19 pandemic, but they should size them appropriately given elevated uncertainty.
We provide context for the US government recommendation for endowments to divest from Chinese companies, highlight practical considerations if institutions elect to comply, and encourage institutions to reaffirm their approach to investing in Chinese equities.
Yes, investors who have made tactical bets in gold should consider scaling back their positions and locking in some gains.
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.
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 provide an in-depth look at the various spending rule types that are used among our endowed clients. Also included are analysis on the endowment’s support of operations and effective spending rate.
This report, based on a survey that Cambridge Associates administers annually to our foundation clients, summarizes returns, asset allocation, and other investment-related data for 115 foundations for the year ended December 31, 2019. Included in this year’s report are commentary and exhibits across five 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.
There are many facets of higher education finance, and it is often challenging to describe how the endowment fits into an institution’s financial picture. Using four key metrics, Endowment Radar plots the endowment’s role in the college and university business model.
While US-China tensions began to slowly de-escalate in the the first half of FY 2020, the arrival of the COVID-19 pandemic in the second half upended the investment landscape. Gold and US Treasuries were the big winners as investors rushed into safe havens, while central banks cut rates and expanded QE programs. Equities have mounted a remarkable comeback, while real assets generally remain quite depressed. This chart book presents returns and other market metrics for fiscal year 2020.
On Tuesday, EU leaders reached agreement on a €750B COVID-19 recovery fund, composed of grants and loans, and settled on a €1.074T budget for the next seven-year period.
No, we’re optimistic about this diverse collection of companies, and we think investors without dedicated allocations should establish toe-hold positions in developed markets (DM) small-cap equities funded from DM mid- to large-cap peers.