Institutions understandably have an interest in the investment results of peers, but a hyper-focus on peer comparisons can be distracting, if not destructive, to effective governance. In this report, we review what can be learned from peer data, where the pitfalls lie, and some examples of how to approach analyzing peer data.
Yes, but positioning for such risks is challenging as timing and specific circumstances are uncertain. Investors should rely on their usual lines of defense: portfolio diversification and liquidity provisioning.
ETFs offer convenient and, in many cases, economical exposure to a variety of asset classes and investment strategies. However, in some cases investors unaccustomed to ETFs have been negatively surprised by the trading missteps that are possible when transacting these products. In this report, we seek to help investors understand some of the key differences between ETFs and traditional mutual funds by reviewing their mechanics, highlighting sources of tracking error, outlining fee and tax considerations, clarifying market impact, offering a set of key decision points for choosing between an ETF and a mutual fund, and discussing best practices for trading ETFs.
We expect further weakness in the British pound as uncertainty over the economic impact of “Brexit” drives the currency toward GBP/USD 1.15, and an even larger decline cannot be ruled out.
Select hedge funds have provided attractive long-term returns with reduced equity beta and can be integral to pension investment strategies.
Our examination of incorporation of environmental, social, and governance factors into the stock selection process for two major MSCI indexes finds evidence that ESG factors added value in emerging markets equities but not developed markets equities.
We remain cautious on UK property, but bold investors may find opportunities in the post-‘Brexit’ environment.
Low rates have distorted markets and generated unintended problems for investors and lenders. Central bankers are increasingly aware of these consequences and are slowly moving to press the pause button. It will take even more courage for them to begin to reverse the unprecedented interventions in bond and other markets.
Yes, though we expect natural resources equities (NREs) to continue to benefit from the rebalancing of supply and demand occurring in oil markets, irrespective of whether the 14-nation cartel follows through on its provisional deal to limit production.
Our biannual report summarizes asset allocation and total investment performance for 27 of Cambridge Associates’ UK foundation and endowment clients.