Social Investing
This paper examines various approaches to social investing, explores whether social investing is incompatible with fiduciary responsibility, and outlines steps necessary to develop a social investing program.
Investment Planning
Investing in Clean Energy and Technology
“Cleantech” provides an evolving investment opportunity that could potentially offer lower correlation to and different risk characteristics than traditional investments. This report presents an overview of the investment outlook for cleantech investing as well as analysis of market size and growth potential; performance characteristics; major risks; and implementation considerations, among other factors.
Cambridge Associates’ Benchmarking Survey: A Statistical Summary
A compilation of survey responses from the April 2005 Investment Policy and Benchmarking Survey sent to endowed clients with assets over $100 million as of March 31, 2005. The survey queried institutions on their practices for (1) benchmarking their portfolios and investments across asset classes, (2) performance attribution, and (3) risk evaluation.
Benchmarking: An Introduction
Benchmarks are used to measure a portfolio’s performance relative to some relevant yardstick. This report is an in-depth discussion of benchmarking objectives, compositions, and managers. It also includes a lengthy discussion of benchmarking within the different asset classes.
Better Beta Boxes? Unconventional Approaches to Asset Allocation
A detailed report on the emergence of unconventional asset allocation (UAA) products in the markets. This report discusses the philosophy, common characteristics, advantages, and disadvantages of UAA. It also looks at the different methods of applying UAA and the roles it can fill in a portfolio.
Auditing Alternative Investments
In July 2006, the American Institute of Certified Public Accountants issued a “Practice Aid” to guide the auditors of institutions with investments in alternative assets. This report is a review of the implications of the Practice Aid based on discussions with major auditing firms, careful examination of the Practice Aid, and Cambridge Associates` familiarity of…
Revisiting Tactical Asset Allocation
This paper details the emergence and growth of global tactical asset allocation (GTAA) and makes a case for GTAA in the current market environment. Strategy implementation, sources of risk, and manager fees are also addressed. Exhibits include a history of tactical asset allocation, “beta” and “alpha” bets taken by GTAA managers, and contact information for…
US Pension Plans: Investment Considerations for Endowment Professionals
This paper provides a framework for assessing nonpublic defined benefit pension plans by examining the key characteristics of pension liabilities, various risks to consider during the asset allocation process, and risk immunization. Exhibits cover pension fund performance, liquidity constraints, liability duration, and a comparison of asset allocation differences between pensions and endowments.
The Best Offense Is a Good Defense
A detailed discussion of how investors should protect their portfolios and allocate their assets during a bear market. Exhibits include cumulative wealth analyses, U.S. equity returns, price-earnings ratios, and global equity market valuations.
Rebalancing
While rebalancing may provide a slight enhancement in returns, its primary goal is to keep asset class weights at or near target allocations in order to control risk and reduce portfolio volatility. This report outlines characteristics of the most common rebalancing strategies and issues to consider when establishing and setting a rebalancing policy.