SEC Adopts Reforms Aimed at Enhancing Private Investment Transparency and Investor Protection

On August 23, 2023, the U.S. Securities and Exchange Commission adopted the most extensive reforms for the private investment industry since the Dodd-Frank Act of 2010. The reforms include many noteworthy aspects that we, and the industry, are still reviewing closely. Below are a few key changes: Fee & Expense Transparency. The new rules require […]

August 2023

Does Fitch’s Recent Ratings Downgrade of US Sovereign Debt Change Our View on Treasuries?

No, we continue to believe investors should hold US Treasuries in line with policy allocations. While the recent decision by Fitch Ratings to downgrade the sovereign credit rating of the United States added upward pressure on Treasury yields, we do not expect it will have a lasting impact. Looking forward, growing fiscal deficits and increased […]

August 2023

US Limits Semiconductor, Quantum Computing, and AI Investments in China

On August 9, 2023, US President Biden issued an Executive Order (EO) limiting US investments in China in three technology sectors—semiconductors and microelectronics, certain artificial intelligence systems, and quantum information technologies—in 2024 and beyond. The administration narrowed the scope of the order since it was first conceptualized, choosing not to limit biotechnology and green technology […]

August 2023

Is Now a Good Time to Invest in the Energy Transition?

Yes, the transition to a low-carbon economy is producing a myriad of productive ways to put capital to work. Considerable capital will be needed to fund the massive investment required over coming decades. Investors looking to maximize impact should invest in strategies that lean into recent policy initiatives (e.g., the Inflation Reduction Act [IRA]) and […]

August 2023

VantagePoint: Investing in a Low-Carbon Future

The transition to a low-carbon economy consistent with the 2015 Paris Agreement to limit global warming requires ambitious technological advancements and continued scaling of existing technologies. Such a massive economic transition by 2050, with meaningful progress by 2030, would be unprecedented but is not impossible, with adequate focus and funding. Indeed, significant progress has been […]

July 2023

Is Now a Good Time to Allocate to Private Credit Strategies?

Yes. Despite elevated macro uncertainty, it is an opportune time to allocate to private credit. Rising interest rates, reduced competition from traditional lenders, and improving documentation mean these should be attractive vintages for direct lending. In a similar vein, credit opportunities funds are finding rich pickings thanks to growing risk aversion, rising distress, and the […]

July 2023

Does the Recent Rally in AI-Linked Growth Stocks Mean Value Is Doomed?

No. While the exciting developments in artificial intelligence (AI) have been a bright spot for equity markets this year, we do not think value will continue to lag growth. In fact, we expect it will outperform over the next several years. Growth indexes have already retraced nearly all of last year’s underperformance relative to value. […]

June 2023

Don’t Count Out Government Bonds Just Yet

Historically, we have recommended investors hold high-quality government bonds as a counterbalance in equity-heavy portfolios. However, in recent years, some investors have reduced their exposure to government bonds, given their low yields, in favor of cash. This was prescient in 2022. Global equities returned -16% in local currency terms, but government bonds also suffered steep […]

June 2023