Research

Brace for Volatility

Making sure that portfolios are aligned with risk tolerance and return objectives is critical in allowing asset owners to withstand volatility and to take advantage of opportunities that may arise.

The Value of ESG Data: Early Evidence for Emerging Markets Equities

Our examination of incorporation of environmental, social, and governance factors into the stock selection process for two major MSCI indexes finds evidence that ESG factors added value in emerging markets equities but not developed markets equities. Given our findings, investors evaluating managers would do well to focus on understanding if and how the manager incorporates ESG factors, for what reason and how consistently, and whether ESG-based stock selection has added value to their funds.

Latin American Private Equity Limited Partners Opinion Survey

Cambridge Associates partnered with the Latin American Private Equity & Venture Capital Association (LAVCA) to conduct an annual survey of global institutional investors currently assessing opportunities in Latin American markets. The survey report covers both domestic and international investors’ views of private equity in Latin America, based on responses from 133 limited partners.

Don’t Forget the Credit Spread!

While corporate plan sponsors are keenly aware of interest rate risk within their defined benefit plans, few fully appreciate the complex and significant risk posed by credit spreads.

The Foundation of Good Governance for Family Impact Investors: Removing Obstacles and Charting a Path to Action

Before incorporating impact investments into their portfolios, we encourage families to define the overall context for their impact investments. Our contextual framework—focused on purpose, priorities, and principles—establishes the base of impact strategy and guides the development of governance structures. These elements will help ensure that family values and decision-making processes are advantages rather than obstacles in pursuing impact investing goals and objectives

Keeping Underwater Endowments Afloat (and the Programs They Support)

When endowment funds slip “underwater” (below the historic dollar value of the original gift), institutions face a tradeoff between distributing anticipated budget support and restoring the endowment to its original value. Ultimately, the choice of underwater policy depends on the situation and needs of each institution in balancing endowment preservation with program support.

The 15 Percent Frontier

With virtually limitless choices along the asset allocation spectrum, an allocation to private investments greater than 15% has served many investors well. Are you on the right track?

CA Perspectives: Spring/Summer 2016

The spring/summer issue of CA Perspectives puts private investments in focus. In “Private Investments Are More Accessible Than You Think,” Craig Smith and Jill Shaw explain why private investing isn’t just for the largest investors. David Thurston and David Shukis discuss why investors with more than 15% in private investments have been the top performers over the long term in “Cambridge Conversations.” In “The Search for Tax-Efficient Alpha,” Philip Walton shares why private investments offer unique benefits for private investors. Our client profile of The Grantham Foundation for the Protection of the Environment, highlights how the Foundation uses private investments for returns and impact.

Hedge Fund-ing the Pension Deficit

Select hedge funds have provided attractive long-term returns with reduced equity beta and can be integral to pension investment strategies.