September’s publication summarizes three articles related to market sentiment. The first highlights how news articles can be used to predict future market returns; the second argues that when sentiment across markets becomes more correlated future returns are likely to be more correlated as well; and the third argues that sentiment is an integral part of asset pricing.
Policy benchmarking is a critical component of building and managing a successful investment program. In this paper we set out our comprehensive benchmarking framework and then zero in on the policy benchmark as the primary reference point for evaluating investment decisions.
VantagePoint is a quarterly publication from our Chief Investment Strategist summarizing CA’s total portfolio advice.
How much faith can investors put in the signs given by various “predictive” indicators? In this brief, we look at five indicators that have been in vogue in recent years, and review their track record.
May’s publication summarizes three articles on factor-based investment strategies. The first demonstrates the difference between theoretical factor returns and the factor returns realized by mutual fund managers, the second examines the robustness and implementation costs of multiple factors, and the third finds that factor timing strategies fail to add value to a diversified multi-factor portfolio.
Investments with the potential to earn returns competitive with equities—without a dependence on economic growth—are especially valuable diversifiers for portfolios.
Within impact investing, real assets investments constitute one of the largest opportunity sets. This report presents findings from our analysis of the financial performance of 55 private real assets impact investing funds across three sectors: timber, real estate, and infrastructure. We find that risk-adjusted market rates of return are achievable in impact investing, but note that as with conventional funds, manager selection is key to success.
Although the election results provide a powerful “risk-on” catalyst in the short term, the underlying long-term problems facing France and the Eurozone are unlikely to go away under a Macron presidency, so the old adage “sell in May and go away” may be vindicated yet again.
We don’t think so. Investors with diversified portfolios already have some cushion if equities sell off, and trying to time the market by buying derivatives or substantially reducing equity exposure is rife with behavioral risks.
Adaptive and sophisticated strategies are necessary to serve the unique features, constraints, and needs of multiemployer plans. In this note, we explore some of the key challenges that many multiemployer plans face, discuss how to invest in light of these challenges, and provide thoughts on governance and the overall role of the investment advisor in the multiemployer context.