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.
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.
Although OCIO has become a buzzword across the broad investment community, many defined benefit plan sponsors have questions about how an OCIO affects a pension plan sponsor’s role as fiduciary and which elements are key to a successful OCIO relationship. Here, we answer 7 common plan sponsor questions on outsourcing.
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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.
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.
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.
Diversity is not just about gender or ethnicity—it is about having different perspectives, different points of reference, and different experiences. Homogeneous investment teams are more susceptible to groupthink, missing out on unknown opportunities, and being blind to some risks. Investors should consider diversity in the investment decision-making process, as we expect a diversity of thought and talent will lead to better investment outcomes than a process that ignores this important issue.
Yes. We believe the underperformance of Japanese small-cap stocks in recent years will reverse, boosted by attractive relative valuations, stronger balance sheets, and growing pressure from shareholders and regulators.
The importance of digitisation has grown during the pandemic, as people have relied more on digital platforms, video streaming, and cloud storage. Investment across the digital infrastructure value chain continues to rise in response, and should increasingly be a priority for real asset investors.