Insights

The US Yield Curve Inverted! Should Investors Underweight Risk?

Although an inverted yield curve is not a sign we welcome, it also is not a clear indicator of an imminent equity market downturn. Instead of underweighting risky assets, we suggest investors take this opportunity to refresh plans to manage through the next bear market.

April 2019

Revving Pension Plans’ Funding Engines

Many corporate defined benefit plans experienced significant funded status gains in recent years. Recent capital markets volatility, however, has set many plans a few steps back, re-focusing plan sponsors on both protecting long-term funded status gains and closing the asset-liability deficit. Given increased volatility in global equity markets, relatively high valuations in many market segments, and the late stages of the economic and credit cycles, optimizing the plan’s growth engine is more critical, and challenging, than ever.

April 2019

Ready, Steady, Co-Invest

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.

March 2019

With Brexit Stress Peaking, Should Investors Tactically Increase Exposure to UK Equities?

No, we don’t believe the politics of Brexit are conducive to tactical asset allocation.

March 2019

Should Investors Chase the Rally in China A-Shares?

Yes, but only if you can tolerate the volatility. Chinese A-shares have surged in 2019, rising nearly 23% as of March 8. In 2018, A-shares’ -29% return was one of the worst among major markets, but renewed optimism this year over US-China trade negotiations sparked the sharp rebound.

March 2019

The Case for Dedicated China Exposure

While we have advised a gradual approach to investing in China, today we believe that investors should take a systematic and comprehensive approach, overweighting Chinese assets relative to their index weights. Looking past the uncertainty and negativity, investors will find a large investment opportunity set, a robust universe of public and private managers, and appealing public equity valuations.

March 2019

Should Investors Be Worried About the Private Real Assets Fundraising Frenzy?

Investors navigating the robust fundraising environment should be selective when making commitments in 2019.

March 2019

Should Investors Fret About Declining Earnings Estimates?

Investors shouldn't sweat the recent downgrades to global earnings forecasts. Although analysts have cut their expectations substantially since September, they still expect most regions to grow in the mid-single digits in 2019.

February 2019