Investors that buy developed markets government bonds have been faced with unpalatably skimpy or even negative yields on offer for some time. The question is no longer why, but for how long? Fed funds futures and benchmark ten-year US Treasuries suggest the answer is several more years, a similar timeline to other markets. But as we know, markets have a tendency to surprise.
This report reviews portfolio returns, asset allocation, investment management structures, and payout characteristics for 113 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.
When endowment funds slip “underwater,” institutions must evaluate the tradeoff between distributing anticipated budget support and restoring the endowment to its original value.
For investors seeking regional diversification and differentiated exposure to emerging markets, Latin American private equity and venture capital warrants serious consideration.
No, but we do expect UK commercial property prices to re-rate to a lower level as investors grapple with the consequences of the Brexit vote.
History implies there is more downside for the pound; we expect the currency to remain volatile and range bound as the long road to Brexit is just starting.
Investors should take seriously the prospect that Brexit is different from the crop of recent crises. Given that a substantial (and growing) constituency across EU countries now supports a breakup, the risks of real departures from the Eurozone no longer seem so remote.
With serious political risks and the possibility of contagion if left unresolved, a solution to the Italian banking crisis that avoids substantial hits to bank bondholders and creditors is likely.
Investors grappled with the trajectory of global growth and the dramatic increase in negative-yielding debt in the year ended June 30, 2016. This brief chart book looks at returns and other market metrics for fiscal year 2016.
The spring/summer issue of CA Perspectives puts private investments in focus. In “Private Investments Are More Accessible Than You Think,” Craig Smith and Jill Shaw explain why private investing isn’t just for the largest investors. David Thurston and David Shukis discuss why investors with more than 15% in private investments have been the top performers over the long term in “Cambridge Conversations.” In “The Search for Tax-Efficient Alpha,” Philip Walton shares why private investments offer unique benefits for private investors. Our client profile of The Grantham Foundation for the Protection of the Environment highlights how the Foundation uses private investments for returns and impact.