Investor approaches to mission-related investing (MRI) are as varied as the social and environmental outcomes they seek to achieve. Based on responses from 148 clients—54 of which are engaged in mission-related investing—this chart book explores trends in the structure, implementation, and governance of MRI programs; investor motivations and perceived challenges; and expectations for future growth in MRI investment activity.
Annual distributions from the endowment are a source of supplemental operating revenue for most endowed institutions, as an institution’s spending policy serves as a bridge that links the long-term investment portfolio and the enterprise. The data and analysis in this report cover a variety of spending topics including spending rule types, the endowment’s support of operations, and effective spending rates. This year’s report draws on a supplemental study Cambridge Associates conducted in April 2018 to dive deeper into some technical factors of spending policy, specifically focusing on spending from new endowment gifts.
For many pension plans, investment strategy is often structured with a liability-hedging portfolio and a growth portfolio, with the weight and composition of each determined by a strategic asset allocation or a de-risking glidepath. Within this overall structure, the construction and calibration of the liability-hedging portfolio is integral to effective pension asset management. This report focuses exclusively on the liability-hedging portfolio, delineating key considerations and best practices for single-employer defined benefit plans including those sponsored by corporations, health care institutions, non-profit organizations, and certain partnerships.
In this Edition: Are index providers now governance watchdogs?; After two years in the regulatory hot seat, prime funds’ assets fall and yields rise; Fintech companies moving from the shadows to the spotlight; Private funds fee and expense disclosure—still can’t disclose enough?
August’s edition summaries three articles related to portfolio management. The first article argues against using past performance in evaluating managers, suggesting that investors instead should focus on qualitative factors; the second suggests investors should not think that active portfolio management is either a zero-sum or negative-sum game; and the third advises analysts to move away from checklist-like approaches when evaluating managers.
July’s edition summaries three articles examining the drop in number of publicly listed US companies. The first discusses how the changing regulatory landscape has led to fewer companies going public; the second argues that the drop is structural and resulted in more concentrated industries; and the third reviews how M&A and IPO activity has impacted listings.
Investing in revenue development and fundraising while simultaneously pursuing goals for asset growth is a balancing act. This paper outlines the various funding mechanisms public universities can use to pay for development efforts, and the implications they have on the investment portfolio and enterprise as a whole.
Setting an appropriate spending policy is an important part of effective endowment management, as an institution’s spending policy serves as a bridge that links the long-term investment portfolio and the enterprise. The data and analysis in this report cover a variety of spending topics including spending rule types, the endowment’s support of operations, and effective spending rates. This year’s report draws on a supplemental study Cambridge Associates conducted in March 2017 to dive deeper into the topics of spending policy implementation and factors that may lead to policy changes.
In this Edition: Investment advisors and regulators step up focus on cybersecurity; A bit of paperwork helps advisors avoid inadvertent custody of client assets; Fiduciary Rule’s future starting to come into better focus; Puerto Rican bond holders may face long wait as island works through Title III proceedings; Merger & acquisition activity slows despite anticipated soft regulatory touch.
Recent policy proposals assume endowments can do more to reduce their reliance on student revenue, and thus the cost of a college education. Our analysis shows that while well intentioned, these proposals will affect endowment and organizational stability and intergenerational equity.