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U.S. inflation reached an annualized rate of 7.0% in December 2021, its fastest pace in nearly four decades. Even the core price index, which excludes the volatile categories of food and energy, climbed to 5.5%. The question is whether inflation will peak in the coming months, as balance sheets are drained and supply chain pressures abate, or wheth...

The sustainable and impact investing industry continues to scale, affording investors an increased level of influence on public and private markets. The most pronounced investor opportunity is expected to be in climate change and the future of work, two areas with significant implications for investment portfolios and for society. The industry is l...

As outlined in the 2022 Capital Markets Assumptions, long-term return expectations for traditional assets remain muted. Alternative investment solutions may offer an opportunity to increase portfolio returns by taking advantage of the remarkable post-pandemic economic evolution in a targeted way through public and private markets.

Overall, the results of the 2022 10-year capital market assumptions are mixed depending on the asset class when compared to last year’s assumptions as the global recovery gains traction. We see weaker equity market returns due to slowing growth rates and stretched valuations. Fixed income asset class returns will once again be extremely limit...

In this 12th annual survey, the focus was on the back office areas and internal fund operations. The results highlight other trends and key insights in the hedge fund industry: growth in assets and funds; an opportunity for smaller, newer managers; investors boosting their hedge fund allocations; how traditional hedge funds are coping with cry...

Investors rode the wave of strong equity returns in 2021. While public equity fueled impressive investment returns, private equity and venture capital performance took portfolios to the next level. Although there was a lot to celebrate with private capital funds, all was not rosy at the end of 2021, with two-thirds of IPOs trading below their IPO p...

The polarizing and often misunderstood cryptoasset landscape has grown exponentially in recent years. While there are substantial risks associated with these young assets, they continue to grow in importance along with its blockchain technology. This paper reviews some of the space’s pressing issues, considers cryptoassets in a portfolio setting, a...

The ESG-labeled bond issuance has been significantly growing and is likely to persist, along with investor interest in this segment of the fixed income markets. What can responsible investors in this market expect in the year to come? Sustainable bonds should play an increasingly important role.

In this segment of The Market in Five Charts, Chief Investment Officer Rick Pitcairn addresses the Ukraine crisis and its impact on capital markets through the following lens:US equity market is resilientEuropean dependence on Russian oil Cooling equity market speculation is one of the US Fed’s desired outcomesUS Fed policy is made more ...

The tailwinds that greeted commodities in 2021 have moderated, but they are not gone. Faced with strong economic growth and high inflation, the market expects the Fed to run down its balance sheet and begin hiking interest rates. In addition, a shift in consumer habits has left most commodity markets priced for a deficit, which may require an exten...

Most of us are familiar with the Consumer Price Index (CPI) as the headline measure of inflation. However, at the January 2012 Federal Open Market Committee, the Fed declared it would use the Personal Consumption Expenditure price index (PCE). Since the indexes are calculated differently in weight, scope, and formula, it will yield different measur...

U.S. inflation is at its highest in four decades due to COVID-19-induced spending on goods, supply-chain issues, fiscal stimulus from the government, and very accommodative monetary policy from the Federal Reserve. But unlike last time when inflation was high, some key drivers of the current inflation are expected to fade. However, several forces a...

Index investing has been a boon to investors seeking accessible, diversified portfolios. However, many index-based portfolios have become notably more concentrated in recent years, in terms of both individual stock positions and sector representation. Given this reality, it’s understandable why many investors are looking at other options to b...

People care about ESG, want ESG outcomes and will make major decisions on where to invest, where to work, and what to buy based on those outcomes. So, when companies make claims about their ESG performance, it should be easy for stakeholders to verify those claims. But the reality is that ESG reporting is often opaque, subjective, and even outright...

The notable increase in consumer prices has sparked concerns around the effect of inflation on investor’s portfolios, wealth plans, and ability to fund goals. For investors, the best offense remains a good defense, and it is not too late to revisit your portfolio with an eye toward protection against the impact of inflation. We answer nine qu...