Outlook 2019: More Risk for Less Return?
Although we are more cautious heading into 2019 than we were 12 months ago, we still think a roughly neutral allocation to risk assets is the right approach.
Investment Planning
Investment Publications Highlights: Fourth Quarter 2018
Fourth quarter’s edition summarizes five articles on environmental, social, and governance (ESG) data.
Mission Critical: Maximizing the Impact of Healthcare System Investments
The most effective investment strategy will acknowledge the uncertainty associated with future cash flows, but avoid being overly conservative so as not to impair future cash flow generation.
VantagePoint: Fourth Quarter 2018
Because the US economy has entered the late stage of the economic cycle, investors should consider the prospect of a bear market recession, even though one does not seem imminent.
Alternative Risk Premia Funds: An Attractive Diversifier? (Sterling 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 (ARP) strategies – which harvest well-established risk premia and market anomalies across asset classes – may fit the bill. ARP…
Investment Publications Highlights: Third Quarter 2018
Third quarter’s edition summarizes five articles on portfolio risk. The first article highlights the trade-offs among diversification, active risk, and excess return in active equity allocations; the second analyzes asset class correlations during tail events; the third highlights how the current state of trading liquidity could exaggerate the next downturn; the fourth argues that hedge funds do protect investors during market shocks; and the fifth reviews how commodity long/short indexes improve a traditional portfolio’s risk-adjusted return.
Rising from the Ashes: Key Developments Since the Global Financial Crisis
In this report, we briefly highlight five key post-GFC developments and discuss how investors might adapt their portfolios to these changes.
Time for a Reset? Rethinking Contributions Policy
While the focus on making contributions prior to the mid-September tax deadline is important for corporate defined benefit plan sponsors, it should be the first step in establishing a dynamic contribution roadmap. Especially given potentially mounting contribution requirements ahead, plan sponsors should take this opportunity to view their contribution policy as one available lever—along with asset returns, liability hedges, and benefit management—in navigating the pension plan to a strong financial position.
VantagePoint: Third Quarter 2018
Climbing the wall of worries is getting tougher. There is room for markets to progress, but caution is required at this stage in the cycle. Markets must overcome four main forces: monetary policy tightening, US dollar strength, a China growth slowdown, and trade friction.
Investment Office Staffing, Oversight Costs, and Governance
This publication, based on our biennial Investment Office Organization and Governance survey of small, medium, and large endowments and foundations, offers a snapshot of responses in three key areas: investment office staffing, oversight costs, and governance.