Research Publications Archive

June 15, 2017

Considerations for ESG Policy Development

Sustainable & Impact Investing | Download

Though the US government is no longer supporting the Paris Climate Agreement, many endowments, foundations, and other US institutions remain committed to aligning their investment policies with the goals of the international accord. Together with the Intentional Endowments Network, Cambridge Associates has outlined considerations for incorporating environmental, social, and governance factors into the development of investment policy statements, as well as a blueprint for incorporating language around the Paris accord into an institution’s IPS. Articulating Purpose, Priorities, and Principles in a well-designed investment policy can help interested institutions effectively incorporate environmental concerns into their investment portfolios.

June 14, 2017

Tracing the Rise of Direct Lending: The Importance of Rates and Loan Structure

Credit/Fixed Income, US | Download

If passing the Dodd-Frank Wall Street Reform Act in July 2010 did not spawn direct lending, what did? In this analysis we explore the genesis of the recent direct lending phenomenon to identify risks to the strategy and what investors should watch going forward.

June 12, 2017

Is Deregulation the Death Knell of Direct Lending? Reviewing the Evidence

Credit/Fixed Income, US | Download

Some market participants have feared the worst for direct lending from a potential repeal of The Dodd-Frank Wall Street Reform and Consumer Protection Act. In this brief, we review the data and show that changes in banks’ lending behavior cannot clearly be traced to the passage of Dodd-Frank or its implementation.

June 12, 2017

Assessing the Track Records of “Predictive” Indicators

Equities, Investment Planning, US | Download

How much faith can investors put in the signs given by various “predictive” indicators? In this brief, we look at five indicators that have been in vogue in recent years, and review their track record.

June 6, 2017

Will the US Withdrawal from the Paris Climate Accord Boost the Prospects for Investments in Energy?

Real Assets

No. Market forces and technological innovation have been far more impactful on the energy sector than environmental regulations. Investors should maintain exposure to private energy and publicly listed energy equities, rather than view this event as a reason to overweight energy exposure.

May 23, 2017

Playing the Long Game—Should the US Treasury Issue Ultra-Long Bonds?

Credit/Fixed Income

Yes. Issuance of ultra-long Treasury bonds (greater than 30 years to maturity, including potentially 40-, 50-, and 100-year maturities) would benefit multiple constituents.

May 22, 2017

Real Asset Dynamics: May 2017

Real Assets | Download

Private equity energy fund raising is likely to hit an all-time high in 2017. In this edition of Real Asset Dynamics, we examine the trends in fund raising, commitments, and investments in energy and their implications.

May 9, 2017

In an Environment of Declining Demographics and Slow Productivity Growth, What Investments Look Attractive?

Investment Planning

Investments with the potential to earn returns competitive with equities—without a dependence on economic growth—are especially valuable diversifiers for portfolios.

May 1, 2017

The Financial Performance of Real Assets Impact Investments: Introducing the Timber, Real Estate, and Infrastructure Impact Benchmarks

Investment Planning, Real Assets, Sustainable & Impact Investing | Download

Within impact investing, real assets investments constitute one of the largest opportunity sets. This report presents findings from our analysis of the financial performance of 55 private real assets impact investing funds across three sectors: timber, real estate, and infrastructure. We find that risk-adjusted market rates of return are achievable in impact investing, but note that as with conventional funds, manager selection is key to success.

April 25, 2017

Do the Results of the First Round of the French Presidential Election Sound the All Clear for European Risk Assets?

Credit/Fixed Income, Currency, Equities, Europe, Investment Planning

Although the election results provide a powerful “risk-on” catalyst in the short term, the underlying long-term problems facing France and the Eurozone are unlikely to go away under a Macron presidency, so the old adage “sell in May and go away” may be vindicated yet again.