Research Publications Archive

August 28, 2017

Real Asset Dynamics: August 2017

A number of Asian private equity real estate managers that we view favorably are likely to fundraise in the latter half of 2017 and first half of 2018. We expect that many of these managers, while performing well, will face challenges raising additional capital as limited partners question the merits of investing in Asian property. In particular, US investors perceive the market to be overheated and have concerns about foreign currency risks. In this edition of Real Asset Dynamics, we examine and analyze these concerns further.

August 21, 2017

Building a Case for Commercial Real Estate Debt

Credit/Fixed Income | Download

At this stage of the US real estate cycle, commercial real estate loans may hold some appeal for investors that are concerned about overvalued real estate equity, as well as those concerned about low spreads and excess competition in other parts of the credit market.

August 15, 2017

Is the Recent Concentration of US Equity Performance in a Small Number of Stocks a Cause for Concern?

Equities

Not in our opinion. Recent market leadership by the so-called FAAMG stocks is not extraordinary relative to history, and their valuations and fundamentals, combined with this year’s relatively healthy market breadth, mean that they don’t necessarily present an outsized threat at this time.

August 7, 2017

Annual Analysis of Foundation Investment Pool Returns: Calendar Year 2016

Peer Data | Download

This report reviews portfolio returns, asset allocation, investment management structures, and payout characteristics for 112 foundations. Analysis and exhibits include performance attribution, risk analytics, policy portfolio benchmarking, the impact of private investment programs on portfolio liquidity, the use of external managers by asset class, payout rates, payout distribution components, and payout objectives.

August 1, 2017

Is the US Dollar Dead?

Currency

We are not ready to pronounce the strong dollar cycle dead, but do admit the US dollar is in critical condition. Investors should remain partially unhedged or prepared to ride out a period of currency volatility.

July 28, 2017

Funding Development for Public Universities

Governance and Management | Endowment and Foundation Series | Download

Investing in revenue development and fundraising while simultaneously pursuing goals for asset growth is a balancing act. This paper outlines the various funding mechanisms public universities can use to pay for development efforts, and the implications they have on the investment portfolio and enterprise as a whole.

July 21, 2017

When Secondaries Should Come First

Private Equity/Venture Capital | Private Investment Series | Download

Investors seeking to gain initial exposure to private investments should actively consider secondaries, rather than funds-of-funds, as the very first step to constructing a long-term private equity portfolio.

July 18, 2017

Will the Nascent Shift in Equity Market Leadership from US to Non-US Equities Persist?

Equities

Extreme relative valuations suggest that over the long term, US equities should underperform from a starting point of today and that even in a downturn, relative underperformance of non-US equities would be mitigated by their more attractive starting valuations.

July 17, 2017

Review of Market Performance: Fiscal Year 2017

Credit/Fixed Income, Equities, Hedge Funds, Private Equity/Venture Capital, Real Assets | Download

Equity markets outperformed other asset classes, while monetary policy expectations continued to negatively impact bond markets during the fiscal year ending June 30, 2017. This brief chart book looks at returns and other market metrics for fiscal year 2017.

July 10, 2017

Spending Policy Practices: 2017

Governance and Management, Peer Data | Download

Setting an appropriate spending policy is an important part of effective endowment management, as an institution’s spending policy serves as a bridge that links the long-term investment portfolio and the enterprise. The data and analysis in this report cover a variety of spending topics including spending rule types, the endowment’s support of operations, and effective spending rates. This year’s report draws on a supplemental study Cambridge Associates conducted in March 2017 to dive deeper into the topics of spending policy implementation and factors that may lead to policy changes.