As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.
Asset Class Mandates
Diversification is an important dimension of an institutional portfolio, but managing each asset class allocation takes specialized expertise and resources.
For more than four decades, we’ve been providing expert investment advice, cultivating deep manager networks, and analyzing robust data across traditional and alternative asset classes, including private equity, venture capital, hedge funds, real assets, public investments, private credit, co-investments, and impact investments.
This service model works well for clients who want to leverage our investment skill and deep manager networks in one or more specific asset classes. And as with our total portfolio solutions, we can manage asset class mandates on either a discretionary or a non-discretionary basis.
Investors are facing a challenging period for earning what they spend and achieving adequate portfolio diversification. With most DM sovereign bond yields near or below zero, expected returns for bonds are at all-time lows and diversification qualities are constrained. In this edition of VantagePoint, we evaluate defense and diversification options to identify a modern approach to diversification in this low-yield era.
Our Latest Insights
Yes, because rising concentration reflects rising valuations for the largest stocks, which are likely to serve as a headwind to index returns. Further, the growing market share of these companies increases the potential for rising regulatory oversight.
Investors have predominantly relied on developed markets sovereign bonds for defense in balanced portfolios, but low rates have diminished their diversification characteristics.
Private investors and wealthy families face distinct portfolio management complexities. Our latest paper details how we build and manage portfolios to meet each private client’s long-term goals.
The virtual Private Investments Summit features a series of sessions where Cambridge Associates and industry thought leaders examine approaches to harnessing the long-term nature of private investments for program benefits while maintaining a consistent path through an ever evolving and volatile market environment. To view the session replays, visit the website link below.
Healthcare systems appear to have navigated the most severe financial impact of the pandemic. We believe the present time provides an opportunity to reset investment strategy and recalibrate portfolios as necessary.
Mary Pang, Head of the Global Private Client Practice, discusses the unique considerations families face when investing for the long term, how wealth owners think about creating legacies with their assets, and the role private clients are playing in navigating and effecting change by investing for social impact.