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.
With returns shrinking in the market, there are several reasons to pursue a co-investment program. We have the experience, market knowledge, and manager network to help clients implement a process that is customized to their unique investment needs.
Co-investing may offer significant benefits including enhanced returns, reduced fees, J-curve mitigation, and increased risk management. But implementing a sound co-investment program comes with significant challenges. We have a specialized team with deep co-investment and direct investment experience to help clients navigate these challenges and reap the benefits of a carefully executed co-investment strategy.
Co-investments are one of only a handful of control levers within an LP’s toolbox, and we encourage all private market investors, regardless of size, to consciously consider implementing a co-investment program.
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.
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.
Register today for our Private Investments Summit on March 11th from 10:30am – 3:00pm ET. Join us as we uncover how investors can maintain long-term focus on private investments, while enduring volatility from all sides. If you’re interested, please email email@example.com
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.