Insights

EU Crosses Rubicon With Recovery Fund Agreement

On July 21, EU leaders reached agreement on a €750B COVID-19 recovery fund, composed of grants and loans, and settled on a €1.074T budget for the next seven-year period.

July 2020

Will Virus-Linked Risks Overwhelm Small-Cap Equities?

No, we’re optimistic about this diverse collection of companies, and we think investors without dedicated allocations should establish toe-hold positions in developed markets (DM) small-cap equities funded from DM mid- to large-cap peers.

July 2020

Improving Investment Returns: Manager Sizing With Active Risk

By considering the return profile of a manager along with its size in the portfolio, active risk provides additional insight to risk management decisions, helps build better portfolios, and contributes to better governance.

July 2020

Racial Equity Investing: The Time Is Now

In 2018, we reviewed the state of social equity investing, with a focus on racial equity investing. The themes we highlighted then are even more relevant today. In this paper, we discuss the renewed sense of urgency around racial equity investing and put forward three actions investors can take to address the inequities inherent in our society.

July 2020

Will the Increase in Remote Working Sink Office Real Estate?

While increased remote working will certainly be a headwind for office demand, the notion that it will result in the “death of the office,” as some reports have suggested, seems unlikely given a number of mitigating factors.

July 2020

The Materiality of Sustainability for Investors

Sustainability trends—including climate change, multi–stakeholder driven society, resource degradation, demographic challenges, and technological revolution—have already impacted investment performance. Investors that incorporate these risks and opportunities into their decision-making frameworks are likely to be better prepared for the future than their peers.

June 2020

Room to Run for Muni Bonds

In this paper, we aim to assess the potential upside and looming risks for munis in the aftermath of the pandemic-induced muni sell-off and subsequent policy-driven rally. Despite the recent volatility, in our view, munis continue to be an attractive alternative to both Treasuries and high-quality corporates for long-term taxable investors.

June 2020

Have Global Equities Bottomed?

Investors should maintain a healthy degree of skepticism about the ability of the global economy and risky assets to manage a V-shaped recovery.

June 2020