Comparative Asset Allocation and Total Return: UK Foundations and Endowments
Our biannual report summarizes asset allocation and total investment performance for 29 of Cambridge Associates’ UK foundation and endowment clients.
Research Publications Archive
Pondering the Consequences of “Brexit”
As the cacophony surrounding the 23 June “Brexit” referendum grows, just how much the United Kingdom stands to lose or gain from leaving remains unclear, and investors with substantial exposures to British assets would do well to pay attention to sentiment.
From Dollar Dominance to Divergence
Since December 2015, currency markets have become increasingly divergent, with the US dollar simultaneously weakening and strengthening against different currencies. To provide investors with a better understanding of how their base currency is performing, this chart book presents analysis of historical currency momentum, valuation, and fundamentals in five key base currencies: US dollar (USD), British pound (GBP), euro (EUR), Swiss franc (CHF), and Japanese yen (JPY).
What’s Driving the Recent Rebound in Oil Prices?
Oil prices have benefited from a number of developments in recent weeks, including fresh data indicating declining production and healthy consumption, weakness in the US dollar, and news of supply-cap discussions between select OPEC members and Russia.
Comparative Asset Allocation: Private Clients
Our biannual report summarizes asset allocation for 98 of Cambridge Associates’ US-based private clients.
Feeling Negative About Sub-Zero Interest Rates
As more countries move from zero interest rate policy (ZIRP) to negative interest rate policy (NIRP) to try to boost growth and conquer deflation, the risks of unintended consequences are rising and investors should tread carefully.
Commodity Futures: Still Plenty of Risks
The strong headwinds facing the commodity sector limit our conviction that current prices will translate into reasonable total returns.
Are Eurozone Equities Still Poised to Outperform in 2016?
Yes, but the amount of outperformance could be limited, and growing macro-driven volatility will likely cap the absolute level of returns.
Annual Analysis of Cultural and Environmental Institution Investment Pool Returns: Fiscal Year 2015
This report reviews portfolio returns, asset allocation, investment manager structures, and net flow data for 55 cultural and environmental institutions. Analysis and exhibits include asset class returns, performance attribution, risk analytics, policy portfolio benchmarking, the impact of private investment programs on portfolio liquidity, the use of external managers by asset class, and net flow rates.
Strategic Currency Hedging Policy: A New Framework
Currency risk is a fact of life for investors, yet few investors have given appropriate thought to setting a strategic hedging policy. The typical approaches have material drawbacks, being either too simplistic or too complex. The new framework we introduce in this paper achieves an attractive balance by seamlessly integrating qualitative portfolio considerations driven by relevant asset class characteristics with a highly simplified yet robust method of incorporating individual currency characteristics. The framework is applicable to a broad set of investors, accommodates lack of precision in measuring currency exposures, separates the question of implementation from policy setting, and helps clearly distinguish between strategic exposures and tactical overlays.