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.
We offer a comprehensive outsourced CIO (OCIO) service that allows clients to focus on their fiduciary responsibility and strategic goals. Our OCIO approach is built upon three core elements that we believe are critical to a successful investment program:
- An integrated partnership between the investment team and the client
- A customized portfolio built to reflect the needs of the client
- Access to managers that leverages both Cambridge Associates’ and the client’s reputation in the marketplace
With nearly 20 years of experience as a discretionary management provider, we serve as a fully resourced investment office that replicates the best practices of leading in-house investment offices. Our outsourced CIO teams are accountable for portfolio strategy, implementation, day-to-day management, and operations. Our OCIO teams are backed by a global research platform and robust operational infrastructure, providing clients with access to world-class ideas with the ability to execute in a timely and operationally efficient manner.
This service model is available for total or partial portfolios and typically works well for clients who would prefer to spend their time on establishing portfolio guidelines and monitoring the performance of the portfolio while delegating day-to-day portfolio decisions.
In this edition of VantagePoint, we review the drivers of inflation globally and conclude that widespread inflation concerns are likely overdone. For investors concerned about the risks of inflation, we refresh our analysis on the complex relationship between asset classes and inflation and dig deeper into the implications of higher inflation on equities.
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This paper discusses recent trends in US commercial real estate fundamentals and looks ahead to what might be in store for the remainder of 2021. Overall, we are reluctant to sound overly bullish about the broad asset class, as the outlook for some sectors is unclear. Still, for investors looking to immediately deploy capital, we highlight two categories of opportunities.
During the past decade, nonprofit healthcare providers have undergone a wave of accelerating consolidation. When systems combine, the new entity created will have new financial health metrics. A fresh review of how a transaction will impact the newly combined long-term investment pool (LTIP) is crucial. This paper examines key variables to assess and specific examples of how a LTIP might restructure post-merger.
While colleges and universities have faced several financial fissures due to the disruptions of COVID-19, their endowments have been a source of financial stability. Four key financial indicators tell this story: operating margins were compressed, tuition discounts grew, institutions borrowed more debt, and endowment spending was consistent. In this note, we review these financial pressures and the endowment implications that emerged in Cambridge Associates’ second annual Endowment Radar Study of private college and university finances.
Listen in to hear Cambridge Associates’ thought leaders discuss the current macro environment and potential catalysts that could increase inflation. We also cover portfolio construction considerations for concerned investors. Visit website.
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.
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.