After assessing the current environment of extremely low interest rates and its implication for defined benefit schemes, we articulate our view on how to develop a flexible de-risking framework that takes into account today's low yields. We contrast this to the more formulaic and mechanical 'glide path' concept advocated by so many pension industry participants. Read the U.S. report and the U.K. report.
This report discusses the landscape of the U.K. social investment market, with a focus on impact investing; reviews the barriers to the growth of the market and potential solutions; and outlines a decision-making framework to help investors evaluate and implement social investments within a diversified investment portfolio. While this report is focused on the social investment market in the U.K., investors outside of the U.K. may find it helpful to read this report to learn about the innovative impact investment opportunities available in the U.K. market and to understand the decision-making framework we propose, which could be helpful to investors in other markets. Read the report.
Cambridge Associates views liability driven investing as a holistic risk-budgeting framework useful to many types of institutions in overseeing asset pools that support institutional liabilities. This paper provides an overview of how institutions, specifically defined benefit pension plans, can employ a robust liability driven investing framework to better manage pension-related risk while maximizing risk-adjusted returns. Read the report.
While emerging markets have historically been viewed as a high-beta play on economic growth, this report makes the case that today they deserve a diversified investment approach similar to that used for developed markets, particularly for investors with meaningful emerging markets overweights. Read the highlights.
The spring edition of our client newsletter, C|A Perspectives, features stories on the evolution from asset allocation to risk allocation; the potential investment opportunities created by new resources in the energy sector; family philanthropy; and Woods Hole Oceanographic Institution's pension plan.