Client Type: Endowments & Foundations

CA Institute May 2020
Foundation Spending Strategies Vary for 2020

In April 2020, Cambridge Associates conducted a survey of our foundation clients to gauge sentiment about spending for the current year and to understand potential sources of flexibility and liquidity in light of the COVID-19 pandemic. This year has brought tremendous disruption and uncertainty, but foundations are approaching these challenges with responsive philanthropy and a long-term view, so they can support important causes in 2020 and beyond.
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CA Institute May 2020
Endowment Governance Part 1 – The Job Description

The “secret sauce” to long-term investment success is, in most cases, the governance that guides and oversees the investment program. In this series, we discuss the roles and responsibilities of governance; highlight the steps to build a diverse and collaborative committee, and outline the culture of a well-functioning committee.
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CA Institute May 2020
Endowment Governance Part 2 – Building the Team

The “secret sauce” to long-term investment success is, in most cases, the governance that guides and oversees the investment program. In this series, we discuss the roles and responsibilities of governance; highlight the steps to build a diverse and collaborative committee, and outline the culture of a well-functioning committee.
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CA Institute May 2020
Endowment Governance Part 3 – Process and Engagement

The “secret sauce” to long-term investment success is, in most cases, the governance that guides and oversees the investment program. In this series, we discuss the roles and responsibilities of governance; highlight the steps to build a diverse and collaborative committee, and outline the culture of a well-functioning committee.
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Research Note April 2020
Benefits of Global Diversification

Investors are now grappling with the impact of the COVID-19 pandemic, which has sent global equities into bear market territory as the threat of a severe recession weighs on the global economy. These are challenging, uncertain times for equity markets. As investors work to ensure their portfolios will be robust through this downturn and are positioned for the eventual rebound, we offer a review of the critical benefits of global equity diversification and examine considerations related to home bias, rebalancing strategies, and currency impacts.
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Research Note April 2020
Life After Zero: Reassessing the Role of Sovereign Bonds with Negative Nominal Yields

Nominal high-quality sovereign bond yields throughout developed markets have plummeted toward zero, increasing the likelihood that most developed markets may soon need to contend with negative yields, and leading investors to question whether high-quality sovereign bonds are still the best form of insurance. In light of these developments, we examine the historical safe-haven characteristics of high-quality sovereign bonds and assesses whether they remain a viable safe-haven asset.
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VantagePoint April 2020
VantagePoint: Is It Time to Overweight Equities?

In periods of market stress, it can be difficult to rebalance, much less overweight risky assets like equities. In this paper, we review our approach using multiple lenses: magnitude and duration of drawdowns relative to history, cheapness of valuations, and presence of pre-conditions for markets to begin their ascent. Such an approach can help investors tune out the emotion and dial in on the hard data and most probable outcomes even in the face of great uncertainty. While opportunities are developing across many markets, investors should hold off on broad overweights to risky assets at this time.
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Research Note March 2020
The Complex Relationship Between Inflation and Asset Prices

March 23, 2020— As we write in March 2020, COVID-19 is spreading across much of the world, undercutting economic activity. While how this situation will unfold is not entirely clear, we have long believed that the best way to guard against future uncertainty is to have a well-constructed portfolio. One key component in that is understanding the relationship between asset prices and inflation.
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