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.
December 2020
As many had expected, the US presidential election turned into more of a process than an event. Whatever the outcome, history has shown that markets are fairly agnostic to which political party holds power in the United States.
November 2020
For many US pension plan sponsors, the déjà vu of falling discount rates and volatile equity markets again raises the question of how best to hedge pension liabilities, if at all. The issue of liability hedging is especially pertinent in today’s complex and asymmetrical interest rate environment.
October 2020
The current health crisis is creating extraordinary financial disruptions for nonprofit enterprises, leading stakeholders to ask if the endowment can come to the rescue of revenue shortfalls and often growing costs. How should an institution evaluate this, and what are the long-term implications of boosting spending beyond policy levels? First, we consider whether it is […]
October 2020
Nonprofit institutions have not been spared from the impact of COVID-19. In June 2020, when many endowed institutions were completing fiscal year 2020 and on the brink of a new fiscal year, we issued a survey that focused on endowment spending and other sources of liquidity for these institutions.
October 2020
Do investors stand to gain more from a Trump victory or a Biden win in November’s US general election? Presidents often have a mix of market-friendly and market-unfriendly policies. Mitigating factors, such as a divided government, can offset market concerns or enthusiasm relating to one specific candidate’s policies. Investors should not tweak portfolios based on election prognostication.
September 2020
In this episode, we discuss the heightened focus on sustainable investing as well as a few key trends that will have implications for investment portfolios. We also talk green-washing within the industry and how to identify asset managers who are incorporating sustainability into their investment process effectively.
September 2020
In this segment, Margaret shares her thoughts on the endowment model given the COVID-19 crisis and whether she believes it’s possible for an institution to achieve a 5% real return in the current market environment. She discusses investing in industry “disruptors,” the importance of diversification, and the debate around growth vs. value.
September 2020