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.
Europe
With Peak Brexit Stress Seemingly Passed, Should UK Investors Boost Sterling Allocations?
No, sterling-based investors should not change their currency hedge ratios or their allocations to sterling-denominated assets based on potential Brexit outcomes.
Alternative Risk Premia: A Diversifying Option for Investors (Euro Edition)
Elevated equity market valuations and potentially rising bond yields suggest the return environment for traditional risk assets could be difficult. Faced with this challenge, institutional investors are seeking alternative sources of return. Alternative risk premia strategies—which harvest well-established risk premia and market anomalies across asset classes—may fit the bill.
Could the Equity and Bond Markets Both be Right About the Macro Outlook?
Yes. While equity and bond markets don’t often rise in tandem like they have lately, history suggests that both recent moves could be warranted if central bank stimulus successfully extends the cycle. But that is a big “if”; several moving parts cloud the macro outlook, and markets are assuming that central banks can reverse the recent economic slowdown.
Stress and Losses Among Middle-Market Senior and Unitranche Loans: Introducing Cambridge Associates’ New Database
As part of our ongoing commitment to alternative credit, Cambridge Associates (CA) began compiling a database of credit stress and losses in one of the largest strategies within private credit, senior debt (i.e., direct lending). Our initial outreach in the United States and Europe yielded data from 11 senior debt funds tracking material document modifications (which we use as a proxy for credit stress, greater detail below) and loss rates in bilateral and clubbed middle-market lending.
Has the US-China Trade War Ensnarled the Euro Area?
Yes. The seemingly ever-expanding US-China trade war has undercut economic activity in the euro area, challenging earnings expectations and the bloc’s currency.
With Brexit Stress Peaking, Should Investors Tactically Increase Exposure to UK Equities?
No, we don’t believe the politics of Brexit are conducive to tactical asset allocation.
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.
Brexit’s Crescendo and UK Investors: Tuning Out the Noise
Though developments and headlines associated with the UK’s Article 50 negotiations with the EU to exit the trading bloc have been fitful, their impact thus far on the underlying fundamentals of the UK economy and sterling-denominated assets, particularly UK equities, has been moderate. Because Brexit is a political process with two-way tail risks, it warrants close monitoring but is not a good foundation for a tactical investment position By the same token, UK investors should avoid factoring in expectations of specific potential Brexit outcomes into strategic decisions regarding currency exposures.
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.