Economic and Market Review: Key Considerations for Equity Investors The outlook we laid out last quarter remains unchanged, and yet the debate about whether we are in a bull or bear market has been as volatile as the market itself.
The outlook we laid out last quarter remains unchanged, and yet the debate about whether we are in a bull or bear market has been as volatile as the market itself. Bullish investors felt vindicated for a while, and offered
More displaced workers seem ready to come back into the labor force, but employers may need to watch their highly compensated “stayers.” One of the key economic side effects of the COVID-19 pandemic and lockdowns was the wholesale departure of
Traditional environmental, social and governance (ESG) analysis has tended to focus on fundamental or “bottom-up” factors. However, we believe that the systemic nature of climate risks demands an expanded “top-down” approach that informs broad asset allocation decisions as well as
Against a background of structurally higher inflation and declining growth, exacerbated by Russia’s invasion of Ukraine, the Asset Allocation Committee’s (“AAC”) views have become more risk-averse. They have also realigned with what we see as a new investment regime, signs
CIO Roundtable – The World after Coronavirus As 2020 draws to a close, the leaders of our investment platforms gathered to talk about the evolution of the investment environment over the past 12 months and the key themes they anticipate
Attempts to flatten but lengthen the growth curve of COVID-19 infections through social distancing and self-isolation will hopefully save lives and keep healthcare systems running. The price to pay is a steep reduction in economic activity. In this quarter’s Outlook,
Shifting assets from public to private equity in and around recent major downturns has been a rewarding strategy. The spread of the coronavirus has upended the economic cycle and the long public equity bull market. Acknowledging that the length and
As the COVID-19 virus spread around the world, sending markets into turmoil, our Asset Allocation Committee (“the AAC” or “the Committee”) met by video conference because governments were telling citizens not to leave their homes. These are extraordinary circumstances, and
How the new richness and accessibility of data, and advances in data science, are enhancing both quantitative and traditional fundamental investment research—and sparking a revolution in active management. Spreading from its origins in technology and retail, data science is now
White Paper To maintain book yield, many insurers are shrinking the risk-free asset allocations in their investment portfolios in favor of growing allocations to alternatives. Against this background, a well-designed strategic asset allocation (“SAA”) framework could help companies navigate risk
Based on 12-Month Outlook for Each Asset Class The balance of risks has changed. Some global trade-related risks have abated and manufacturing sentiment appears to be stabilizing. But political risks are rising, including in the U.S., and valuations are high.
This quarter’s Outlook is all about how surfaces can hide complexity and opportunity. Record highs and lows in stock indexes and government bond yields inform cautious high-level asset class views. We see opportunities, however, to take advantage of underlying market
With stock markets fueled by extraordinary central bank intervention in the wake of the Global Financial Crisis, passive equity strategies have seen great success in terms of performance, fund flows and press coverage. Often overlooked in the haste to declare
White Paper With stock markets fueled by extraordinary central bank intervention in the wake of the Global Financial Crisis, passive equity strategies have seen great success in terms of performance, fund flows and press coverage. Often overlooked in the haste
Fundamental Laws The proportion of asset classes that ended 2018 in the red was unprecedented, driven by two structural transitions: from quantitative easing to quantitative tightening, and from a globally synchronized to a multi-cycle growth dynamic. In 2019, we expect
Our Emerging Markets Debt team has been analyzing ESG indicators for sovereigns for eight years, and started working with Sustainalytics five years ago to build ESG coverage of its corporates universe. During that time, it has continually enhanced its ESG
A Critical Point in the Cycle Going into the fourth quarter, the Asset Allocation Committee (AAC, “the Committee”) reflects upon how unusual 2018 has been for financial markets. One of its most notable features has been some extreme divergences between
A Critical Point in the Cycle Going into the fourth quarter, the Asset Allocation Committee (AAC, “the Committee”) reflects upon how unusual 2018 has been for financial markets. One of its most notable features has been some extreme divergences between
With the end of 2017 near, the leaders of our investment platforms gathered to talk about the evolution of the investment environment over the past 12 months and what they expect for 2018. Joe Amato: The optimism of the “reflation
Asset Allocation Committee Outlook 2Q18 Volatility is back. In our last Asset Allocation Committee Outlook, we anticipated continued market momentum and a subsequent return to choppier markets after a long period of calm. We got the momentum in January, and
