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.
Advice in Brief The global economic acceleration that began last spring has strengthened, the global profit recession is over, and inflation is increasing, but remains at manageable levels. The environment is generally supportive for risk assets, but diversification is still needed, given myriad economic and geopolitical concerns. Given the sharp rally in global equities, we…
An extended bull market can tempt even the savviest investors into abandoning their long-term discipline. Resisting the impulse to switch horses in the middle of the race is hard, but necessary—the most important trait of successful investors is their ability to maintain discipline in sticking to a long-term strategy during good times and bad. Diversified portfolios—structured to earn returns comparable to their rate of spending at tolerable levels of risk—have benefitted long-term investors and grown their purchasing power for decades, and we have no reason to expect a different outcome when today’s bull market inevitably corrects.
March’s publication summarizes three articles on the current political landscape in Europe. The first explores structural challenges to the euro area’s stability; the second highlights potential outcomes related to the United Kingdom’s exit negotiations with the EU; and the third reviews five shifts beyond politics that are impacting European markets.
We doubt it. But, price levels are likely to rise gradually in the months ahead, as the rebound in energy commodities continues to impact measurements.
February’s publication summarizes three articles on the potential impacts of US corporate tax reform. The first estimates the impact that certain proposals may have on the S&P 500’s earnings per share, the second highlights how a border adjustment tax may lead to a temporary spike in inflation and prompt rates to sell off, and the third examines potential risks to Asian exporting countries.