VantagePoint: China – Reassessing Risks and Opportunities

As the second largest economy in the world, China remains an important destination for global investor capital. Yet, the pace and scope of China’s regulatory crackdown are causing concern. In this edition of VantagePoint, we review the nature of regulatory developments and their impact on the investment opportunity set. We believe that dedicated, strategic allocations to Chinese assets are still warranted. Investors should carefully consider their sector exposure and evaluate managers’ capabilities in the current regulatory and geopolitical environment.

October 2021

Does the ECB Strategy Review Represent an Overhaul of Euro Area Monetary Policy?

The results of the strategy review were more about clarifying and making explicit how European Central Bank (ECB) policy is currently run, rather than signalling a radical departure for monetary policy in the single currency bloc.

August 2021

Don’t Discount Fixed Income Investing for US Pension Plans

While alpha is commonly recognized as a key lever in maintaining or improving funded status, it is often mistakenly limited to purely equity or lower-liquidity investment opportunities. For plan sponsors, this can be a costly misconception. Cambridge Associates’ research shows that active fixed income management can contribute valuable alpha, resulting in significant benefits to plan outcomes.

August 2021

Is China Targeting Foreign Investors Amid the Tech Crackdown?

No. While the ongoing regulatory crackdown on technology companies in China is unsettling markets, it is not specifically targeting foreign investors.

July 2021

VantagePoint: Can Value Outperformance Endure?

In this edition of VantagePoint, we explore the historical drivers of the value risk premium to determine if there have been any fundamental changes since 2007, the start of the global financial crisis, and to understand conditions that must be present for a sustained period of value outperformance.

July 2021

Investing for a Net-Zero World: A Guide for Investors

Investors are increasingly pursuing climate change–related agendas for both better investment outcomes and alignment with their stakeholders’ beliefs. This paper provides a high-level overview of the net-zero investing topic and considers practical implementation options for investors.

July 2021

Will Talk of the Fed Tapering Cause Another Bond Tantrum?

No. While the Federal Reserve’s discussion of tapering asset purchases signals a shift toward tighter monetary policy, both the Fed and markets learned valuable lessons from the 2013 Taper Tantrum; the impact on bond yields should be limited.

June 2021

Implementing Sustainable and Impact Investing in Investment Portfolios

Implementing sustainable and impact investing (SII) themes in investment portfolios can seem complex, leaving many investors new to SII wondering how to begin. This paper provides insight into building resilient portfolios that will contribute to and thrive in a more sustainable and equitable future.

May 2021