Asia Insights: Seeking Stable Returns
With the global economy showing signs of cooling and Chinese economic momentum remaining weak, the outlook for Asian markets is increasingly mixed.
Research Publications Archive
Should Investors Diversify Away From Mega-Cap Tech Stocks?
Yes, investors should diversify in a risk-controlled manner, as mega-cap tech stocks have delivered exceptional fundamentals but are expensive and represent an outsized share of the equity markets.
The Fed Cuts Aggressively, but Remains Cautious About Future Cuts
The Federal Reserve has reduced the target range for the federal funds rate by 50 basis points (bps) to 4.75%–5.00%, the first reduction in over four years.
Would US Private Capital Flows into Climate Solutions Remain Strong in a Second Trump Administration?
Yes, we believe that private investment in climate solutions would continue apace in a second Trump administration, given strong demand for clean energy, supportive and resilient US government policies, and robust investment opportunities that will continue to be attractive to many investors.
Simplifying Net Zero Implementation: Possible Pathways to a Portfolio That Can Be Good for the Climate
Investors can simplify net zero implementation by prioritizing practical and pragmatic steps towards real world emissions reduction. We provide both a feasible pathway to climate impact for investors with a mature portfolio and a template for building a net zero portfolio from scratch.
US Election Anxiety: Keeping Calm Amid Political Uncertainty
Markets have been jittery as the US presidential election approaches. The macro backdrop is shifting, with slowing economic growth and ebbing inflation meaning a cycle of monetary easing beckons. At the same time, elevated valuations for a variety of assets are causing investors to reconsider narratives around themes, such as AI investment, and consider asset allocation tweaks. Investors should resist positioning portfolios for any one political outcome and remember that increased market volatility around elections is common. In the following report, we discuss our views on five common election-related narratives in the marketplace today.
Private Investment Fund Terms: Fees and Distribution Waterfall
This inaugural private investment fund terms publication highlights terms such as management fee, transaction fee offset, distribution waterfall, and GP clawback based on activity from 2018–22, The proprietary data found in this publication will help to keep clients well-informed about marketplace commonalities regarding these terms.
Will Federal Reserve Rate Cuts Trigger Outperformance for Chinese Equities?
No, Federal Reserve rate cuts alone are unlikely to trigger sustained outperformance for Chinese equities.
Do Emerging Markets Equities Deserve a Place in Public Equity Portfolios?
Yes. Emerging markets equities provide a fitting reminder that relative performance among asset classes varies over time, suggesting that investors maintain well-diversified portfolios to weather shifts in performance cycles.
Should Investors Alter Portfolios Considering the Equity Market Rout?
No, not right now. We continue to believe investors should: (1) keep equity allocations aligned with broad policy targets; (2) maintain modest overweights in less expensive areas within equities, such as developed markets value and small caps; and (3) maintain a modest overweight in long US Treasury securities within bond portfolios.