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.
Our clients’ needs change, and we can change with them. Our staff extension model complements our clients’ internal resources and provides them with additional expertise to help identify and implement the best investment ideas for their portfolios.
We often work with clients who have significant investment staff to augment their in-house support with our robust manager networks and deep portfolio construction and asset class expertise. Working with each client to customize a service arrangement, we can serve as a sounding board to clients’ investment staff on portfolio risk exposures, manager ideas and introductions, implementation plans including forward calendars, and upcoming investment opportunities.
This service model is designed to evolve with each client’s needs over time and typically works well for clients who don’t have the same level of resources and infrastructure across asset classes as a fully built investment office.
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.
Our Latest Insights
Yes, because rising concentration reflects rising valuations for the largest stocks, which are likely to serve as a headwind to index returns. Further, the growing market share of these companies increases the potential for rising regulatory oversight.
Investors have predominantly relied on developed markets sovereign bonds for defense in balanced portfolios, but low rates have diminished their diversification characteristics.
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.
Healthcare systems appear to have navigated the most severe financial impact of the pandemic. We believe the present time provides an opportunity to reset investment strategy and recalibrate portfolios as necessary.
Register today for our Private Investments Summit on March 11th from 10:30am – 3:00pm ET. Join us as we uncover how investors can maintain long-term focus on private investments, while enduring volatility from all sides. If you’re interested, please email email@example.com
Mary Pang, Head of the Global Private Client Practice, discusses the unique considerations families face when investing for the long term, how wealth owners think about creating legacies with their assets, and the role private clients are playing in navigating and effecting change by investing for social impact.