Investment Strategy

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Article

2023-12-31

Portfolio strategy Outlook Asset allocation No Optimizely Macro and market Multi-asset Collection

2023 Investment Strategy Outlook

To help think through the asset allocation outlook and implications for 2023, we offer views from iStrat, our investment strategy and solutions group.

Multiple authors

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Collection

2023-12-31

Thematic exposure Asset allocation Equity Outlook No Optimizely Economic cycle iStrat Article

Thematic investing: Long-term thinking for a short-term world

With economic conditions expected to remain volatile in the coming year, members of our Investment Strategy team suggest that thematic allocations may help reduce the importance of the cycle to portfolio returns.

Multiple authors

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Article

2023-12-31

Asset allocation Portfolio strategy Macro and market Outlook No Optimizely Active management Factors Innovation Volatility Equity Fixed income Multi-asset iStrat Article

The allocator’s landscape: Three areas of attention for 2023

Natasha Brook-Walters, Co-Head of Investment Strategy, discusses downside mitigation given the shifting equity/bond correlation, the impact of cyclical and macro volatility, and opportunities to position for long-term change.

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Natasha Brook-Walters

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Article

2023-12-31

Climate Alternatives Portfolio construction Video

Understanding the climate opportunity in alternatives

Portfolio Manager Alan Hsu highlights the potential inefficiencies created by traditional long-only climate strategies.

By

Alan Hsu

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Video

2023-11-30

Active management Asset allocation Equity Outlook Factors iStrat Multi-manager solutions No Optimizely Article

Equity allocation ideas after a year of factor extremes

Members of our Fundamental Factor Team discuss the role of defensive allocations as a complement to growth and value, the improved stock-picking environment, and the need for macro stress tests, among other topics.

By

Gregg Thomas , CFA

Chris Driscoll , CFA

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Article

2023-12-31

Government bonds Factors Fixed income iStrat Macro and market Quick Take Portfolio construction

Diversifying styles to survive today’s bond market

In a challenging year for fixed income markets, members of our Fundamental Factor team highlight a bright spot: the momentum factor in global government bond and corporate credit markets.

Multiple authors

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Quick Take

2023-11-30

Credit Inflation Interest rates Volatility Asset allocation Fixed income Quick Take

Three tailwinds that could power CLO equity in 2023 and beyond

Three members of our fixed income team argue that the headwinds currently facing CLO equity should give way to improved returns in 2023 and beyond.

Multiple authors

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Quick Take

2023-11-30

Insurance Multi-Asset Outlook Multi-asset Macro and market Inflation Volatility Interest rates Monetary policy Asset allocation Equity Fixed income Commodities Balance sheet Whitepaper

Inflation, rates, and volatility: The best defense is a good offense

Insurance Strategist Tim Antonelli shares his latest multi-asset views for insurers, including the need to balance defensive portfolio strategies with continued income and return generation.

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Whitepaper

2023-04-15

Hedge funds Interest rates Fixed income Manager selection Factors Alternatives iStrat Article

In a new era for interest rates, can hedge funds fill the role of fixed income?

Hedge funds could be valuable building blocks for a fixed income substitute portfolio, but how should the portfolio be constructed? Members of our Fundamental Factor Team share their views.

Multiple authors

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Article

2023-11-30

India EM equity Macro and market Asset allocation Equity Quick Take

India equity: An unsung long-term performance story

Despite strong long-term performance, Indian equities are often overlooked. That may be a mistake, say Equity Portfolio Manager Niraj Bhagwat and Investment Director Philip Brooks.

By

Niraj Bhagwat

Philip Brooks , CFA

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Quick Take

2023-10-31

Equity China Macro and market Asset allocation Quick Take

China equity: Is today's investor pessimism overdone?

The short answer is yes, say Equity Portfolio Manager Niraj Bhagwat and Investment Director Philip Brooks, who believe China may offer a short-term buying opportunity.

By

Niraj Bhagwat

Philip Brooks , CFA

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Quick Take

2023-10-31

Credit High yield EM debt Outlook Income Risk management Active management Portfolio strategy Economic cycle Fixed income Article

Credit market outlook: Partly sunny with a chance of good value

In his 2023 credit market outlook, Fixed Income Portfolio Manager Rob Burn highlights some potentially attractive opportunities in the wake of this year's market sell-off.

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Rob Burn , CFA

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Article

2023-12-31

Asset allocation Inflation Monetary policy Outlook Multi-Asset Outlook Volatility Multi-asset Article No Optimizely

Multi-Asset Outlook — Higher rates for longer: What does it mean for markets?

For central banks, the inflation fight is on, but the policy and market responses will vary in the coming months. Nanette Abuhoff Jacobson and Supriya Menon discuss the implications for equities, bonds, and commodities.

By

Supriya Menon

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Article

2023-11-30

Impact Sustainability Portfolio strategy Sustainability policies Equity Fixed income Impact investing Quick Take

Impact measurement and management: addressing key challenges

Our IMM practice leader describes common impact investing challenges and suggests ways to overcome them.

By

Oyin Oduya , CFA

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Quick Take

2023-10-31

Interest rates Inflation Credit Asset allocation Fixed income USA Quick Take

Bank loans: Can issuers overcome higher interest expenses?

The short answer, according to Fixed Income Portfolio Managers Jeff Heuer and David Marshak, is that many can. And, they believe bank loans can outperform many other fixed-income sectors over the next 12 months.

Multiple authors

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Quick Take

2023-01-31

Monetary policy Interest rates Inflation Economic cycle Portfolio strategy Equity Fixed income Multi-asset USA Quick Take

The Fed wants to crush inflation, but at what cost?

Following a higher-than-expected inflation print and the Fed's latest rate hike, Global Investment Strategist Nanette Abuhoff Jacobson considers potential implications for fixed income and equities.

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Quick Take

2022-12-31

Thematic exposure Digital transformation Financials Emerging markets Equity Article No Optimizely Unique Perspectives

Thematic investing focus: The accelerating drive for financial inclusion

The global effort to expand access to financial services is getting a boost thanks to the digitalization trend and the growing consumer acceptance of technology, creating a range of investment opportunities.

Multiple authors

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Article

2023-09-30

Thematic exposure Equity Active management Article

Wanted: A better definition of thematic investing

Multi-Asset Portfolio Manager Brian Garvey and colleague Manny Hunjan believe the prevailing definition of thematic investing is overly narrow and offer a potential solution.

By

Brian Garvey

Manny Hunjan

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Article

2023-09-20

Alternatives Insurance Portfolio construction Alternatives investing Asset allocation Balance sheet Article

The road less traveled: An insurer’s path to investing in alternatives

Insurance Multi-Asset Strategist Tim Antonelli lays out a sturdy yet flexible framework to help global insurers navigate the alternative investments space.

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2023-09-30

Asset allocation ESG Fixed income Sustainable investing Impact Quick Take

Sustainable fixed income: Key terms allocators should know

ESG integration versus sustainable investing: What’s the difference? We explain a few key distinctions that are important for allocators to understand.

By

Anand Dharan , CFA

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Quick Take

2023-06-30

Monetary policy Inflation Risk management Macro and market Equity Fixed income Multi-asset Quick Take

The shifting equity/bond correlation: Implications for portfolio construction

Multi-Asset Strategist Nick Samouilhan looks at what's driving the change in the all-important equity/bond relationship and what can be done about it.

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Quick Take

2022-12-31

Inflation Monetary policy Commodities Asset allocation Multi-asset USA Quick Take

Investment takeaways from the latest inflation data

With 2022's structural inflation story still very much intact, now may be a particularly opportune time for investors to add real-asset and inflation-sensitive exposures to their portfolios.

By

Jake Coyne , CFA, CAIA

Willa Sun

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Quick Take

2022-11-30

Macro and market China Geopolitical Top of Mind COVID Portfolio strategy Multi-asset Equity Article

Has China’s investment landscape permanently shifted?

Multi-Asset Strategist Adam Berger and Macro Strategist Santiago Millán consider key policy-related questions hanging over the Chinese market and share some near- and long-term investment views.

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Santiago Millán , CFA

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Article

2023-08-31

Economic cycle Inflation Portfolio strategy Interest rates Monetary policy Multi-asset Quick Take

Positioning for a “pricey” recession scenario

Client Portfolio Manager Jitu Naidu and Fixed Income Strategist Amar Reganti offer portfolio positioning ideas for the potential recession scenario that may lie ahead.

By

Jitu Naidu

Amar Reganti

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Quick Take

2022-11-30

Inflation Asset allocation Europe Volatility Monetary policy Equity Multi-asset Alternatives Article

High inflation and slow growth in Europe: How should investors respond?

Multi-Asset Strategist Supriya Menon explores the asset allocation implications of high inflation and slow growth in Europe.

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Supriya Menon

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Article

2023-08-31

Credit Macro and market Portfolio strategy Diversification Quick Take

Global convertibles: Unprecedented times call for unconventional solutions

Fixed Income Portfolio Manager Michael Barry and Investment Director Raina Dunkelberger argue that global convertible bonds are well suited to today's uncertain market environment.

By

Raina Dunkelberger , CFA

Michael Barry

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Quick Take

2022-11-30

Monetary policy Interest rates Volatility Portfolio strategy Multi-asset Quick Take

What can history teach us about today's markets? A framework for drawing comparisons

Members of our Investment Strategy Group explain how they identify similarities to past market environments and what their approach is signaling about today's conditions.

By

Alex King , CFA

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Quick Take

2022-11-30

Top of Mind Inflation Commodities Asset allocation Energy Article

Is the commodities rally built to last?

Commodities were the only major asset class that performed well in the first half of 2022. Multi-Asset Strategist Adam Berger and Commodities Portfolio Manager David Chang consider whether there’s more upside from here.

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David Chang , CFA

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Article

2023-08-31

Credit Investment grade Economic cycle High yield Portfolio strategy Quick Take

Fixed income: Relative value opportunities amid growth slowdown

In the face of this year's fixed income market turmoil, Fixed Income Portfolio Manager Rob Burn sees attractive opportunities for investors with longer-term time horizons.

By

Rob Burn , CFA

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Quick Take

2022-10-31

Asset allocation Alternatives Hedge funds Alternatives investing Article

Recalibrating alternative allocations for a new market reality

As allocators cope with economic uncertainty and market volatility, Multi-Asset Strategists Cara Lafond and Adam Berger explain how alternative investments could potentially play a role in improving portfolio resilience and returns.

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Cara Lafond , CFA

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Article

2023-08-31

Top of Mind Inflation Asset allocation Monetary policy Multi-asset USA Article

Will the Fed send the US economy into a recession?

Multi-Asset Strategist Adam Berger and US Macro Strategist Juhi Dhawan consider the broad impact of Fed rate hikes and how asset allocators should respond.

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Juhi Dhawan , PhD

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Article

2023-07-31

Asset allocation Yield Multi-asset Inflation Volatility Article

Insurers: Strengthen your core in the second half

Insurance Multi-Asset Strategist Tim Antonelli shares his latest multi-asset insights for global insurers, including his view that core fixed income holdings — US interest rates and investment-grade corporate bonds — should stack up well against most risk assets in the second half of 2022.

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2022-12-31

Factors Manager selection Alternatives Alternatives investing Fixed income Hedge funds Multi-manager solutions Article

Can hedge funds behave if fixed income doesn’t? A manager-selection view

Our Fundamental Factor Team proposes an alternative approach for analyzing hedge funds and constructing multi-manager hedge fund portfolios intended to fill the roles of fixed income.

Multiple authors

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Article

2023-07-31

Credit Interest rates Portfolio strategy Quick Take

Don’t be surprised if CLO equity surprises to the upside

Members of our fixed income team, including Portfolio Manager Alyssa Irving, believe CLO equity could be poised to outperform many other risk assets over the next few years.

Multiple authors

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Quick Take

2022-10-31

Outlook Alternatives Hedge funds Alternatives investing Asset allocation Manager selection Portfolio construction Volatility Fixed income Private equity Article

Mid-2022 Alternative Investments Outlook

As allocators cope with economic uncertainty and market volatility, Multi-Asset Strategist Cara Lafond explains how alternative investments could potentially play a role in improving portfolio resilience and returns.

Multiple authors

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Article

2023-08-31

Manager selection Portfolio construction Hedge funds Multi-manager solutions Alternatives Fixed income Alternatives investing Quick Take

Using hedge funds to perform the role of fixed income: An alternative approach

Member of our Fundamental Factor Team offer a role-based framework that may help better align manager research, portfolio construction, and potential investment outcomes.

Multiple authors

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Quick Take

2022-10-31

Outlook Asset allocation Multi-asset Equity Fixed income Commodities Thematic exposure Inflation Article

Mid-2022 Asset Allocation & Investment Strategy Outlook

We explore the market implications of central bank policies, rising prices, and slowing growth and offer incremental steps to improving a portfolio’s return potential.

Multiple authors

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Article

2023-07-31

Asset allocation Thematic exposure Equity Quick Take

Stepping-stone investment ideas: A bridge over troubled waters?

Multi-Asset Strategist Adam Berger offers incremental investment ideas that may help asset owners improve a portfolio's return potential.

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Quick Take

2022-10-31

Outlook Fixed income Equity Factors Multi-manager solutions Large cap Inflation Value vs growth Monetary policy Volatility Manager selection Article

Mid-2022 Asset Class Outlook

We offer perspectives on growth and value equities and explore ideas for shoring up your fixed income flank amid the evolving economic and market environment.

Multiple authors

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2023-07-31

Fixed income Sustainability ESG Portfolio strategy Quick Take

Sustainable fixed income investing entering the mainstream

This short piece explores the continued rise of sustainable fixed income investing and links to a more in-depth white paper on the topic.

Multiple authors

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Quick Take

2022-12-31

Portfolio strategy Multi-asset Asset allocation Alternatives Equity Fixed income Private equity Public pension (DB) Whitepaper

Closing the return gap: A new set of “stepping stone” ideas

Multi-Asset Strategist Adam Berger offers incremental, flexible investment ideas that can be combined to help asset owners pursue their goals amid declining capital market return expectations.

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Whitepaper

2023-06-30

Inflation Portfolio strategy Multi-asset Macro and market Commodities Equity Fixed income Article

Sticky inflation, weaker growth: A volatile mix

As central bank policy, rising prices, and slowing growth roil the markets, Nanette Abuhoff Jacobson and Supriya Menon explore the implications for equities, bonds, and commodities.

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Supriya Menon

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2022-10-31

Credit Government bonds Portfolio strategy Inflation Quick Take

A transition year for agency MBS?

Following a challenging period for agency MBS, members of our securitized team now see attractive opportunities in the space and believe actively managed strategies may be the best way for many investors to capitalize.

Multiple authors

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Quick Take

2022-07-31

Climate Asset allocation EMEA Multi-asset Event replay

Climate from the allocator's perspective

How do different asset allocators within Wellington incorporate climate change into their investment process as markets, data and regulation continue to evolve?

Multiple authors

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Event replay

2023-05-31

Asset allocation Multi-asset Defined contribution (DC) Quick Take

Making the money last: Research insights on the decumulation challenge

Our Investment Strategy team considers the unique challenges of decumulation strategies, including sequencing and longevity risk, and offers thoughts on best practices in portfolio construction, process design, and implementation.

Multiple authors

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Quick Take

2023-04-30

Credit Interest rates Risk management Monetary policy Quick Take

Empirical duration: reason for optimism on risk assets?

While rising rates often produce negative bond returns, combining the concept of empirical duration with a positive outlook on the credit cycle may bode well for some fixed income sectors' return prospects going forward. Investment Analyst Will Prenits and Investment Director Tobias Ripka explain.

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Will Prentis

Tobias Ripka , CFA

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Quick Take

2022-07-31

Defined contribution (DC) Multi-asset Asset allocation Retirement Income Article

Demystifying decumulation: A practical guide

Investors seeking a sound decumulation strategy must consider a host of variables, including risks that weren’t on the radar when they were accumulating assets. Members of our Investment Strategy team consider the interaction between portfolio withdrawals and specific characteristics of the portfolio’s realized return. They also offer thoughts on successful decumulation strategies, focusing on portfolio construction, process design, and implementation.

Multiple authors

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2023-04-30

Active management Manager selection Equity Quick Take

Nobody’s perfect: The case for a long-term strategy in active management

While many asset owners recognize the value of a long-term mindset, it can be challenging to resist short-term instincts in volatile environments like the one we’ve seen in recent months. But asset owners who have a strategy to help them stay focused on the long term may avoid a number of potentially costly behaviors, including abandoning a thoughtfully selected allocation to a manager after a relatively short period of underperformance.

Multiple authors

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Quick Take

2022-07-31

Inflation Europe Portfolio strategy Yield Monetary policy Interest rates Quick Take

Helping European investors navigate inflation fears

The recent shift to a higher inflation regime, with resulting expectations of tighter monetary policy and rising interest rates, presents a material challenge for European fixed income investors. Against this backdrop, Investment Analyst Will Prentis and Investment Director Tobias Ripka believe investment flexibility is key.

By

Will Prentis

Tobias Ripka , CFA

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Quick Take

2022-07-31

Liability-driven investing Multi-asset USA Asset allocation Private pension (DB) Article

Nearing the finish line: Ideas on end-state investing for corporate DB plans

As corporate plans approach their fully funded “end state,” new goals will need to be set. Members of our LDI team share their research on this transition and the required realignment of asset allocation strategies, including changes in return-seeking and liability-hedging portfolios and key liquidity considerations.

By

Amy Trainor , FSA

Jacqueline Yang , CFA

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2023-04-30

Active management Factors Portfolio construction Risk management Equity Fundamental equity Quick Take

Beware of benchmark concentration

We discuss the outperformance of megacap stocks and offer perspective on how active managers may approach the challenge of being underweight those stocks.

By

Gregg Thomas , CFA

Noah Comen , CFA

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Quick Take

2022-06-30

Credit Interest rates Portfolio strategy Inflation Quick Take

Four potentially powerful tailwinds for the securitized sector

In his latest Top of Mind session, Multi-Asset Strategist Adam Berger addressed a wide range of what-if scenarios on the minds of our clients. See what he has to say on Russia, China, cryptocurrencies, the IPO market, and many other topics in this brief article.

Multiple authors

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Quick Take

2022-06-30

Government bonds Credit Macro and market Quick Take Portfolio strategy USA

An inside look at today’s municipal market

After a year in which municipal bonds posted respectable returns (Figure 1), many clients have been seeking forward-looking guidance on the market as a whole and (increasingly) on particular sectors of it. Here are my latest thoughts as of this writing on the outlook for the rest of 2022.

By

Tim Haney , CFA

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Quick Take

2022-05-31

Macro and market Asset allocation Multi-Asset Outlook Inflation Interest rates Monetary policy USA Russia Japan Equity Fixed income Multi-asset Commodities Article

For markets, it’s complicated

As markets grapple with the war in Ukraine, inflation worries, and a host of other issues, Nanette Abuhoff Jacobson and Daniel Cook offer their thoughts on the investment implications for equities, commodities, and fixed income.

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Daniel Cook , CFA

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2022-10-31

Factors Fixed income Asset allocation Portfolio construction Article

Better balance in bonds: How a factor framework and a barbell approach could help

For investors seeking diversification in their credit portfolios, members of our Fundamental Factor team propose a portfolio construction and manager selection process designed to source complementary manager alpha-generation styles and help “smooth out” the path of fixed income alpha.

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Brendan Fludder , CFA

Noah Comen , CFA

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Article

2023-02-28

Climate Asset allocation Portfolio construction Sustainable investing Equity Quick Take

Adapting our capital market assumptions to the realities of climate risk

As the momentum behind decarbonisation and net-zero objectives builds around the world, asset owners are increasingly engaged in addressing the investment implications of climate change. The focus thus far has largely been on implementation at the security- and manager-selection levels, but there is a growing recognition of the need to factor climate change into broader investment policy and asset allocation decisions. To help with this process, our Investment Strategy Team, in partnership with our Climate and ESG teams, recently completed a comprehensive effort to integrate climate risks into our capital market assumptions (CMAs).

By

Ben Cooper , CFA

Patrick Wattiau

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Quick Take

2022-05-31

USA Asset allocation Quick Take Equity Value vs growth

Regime change likely to challenge modern market structures

Recently, I wrote about the rotation from growth to value and why some of my colleagues and I expect volatility, more than a smooth transition of leadership, to define markets. The thesis is rooted in the fact that seismic macro questions loom over markets and are likely to trigger violent fluctuations in investor conviction. Earlier this month, Macro Strategist John Butler dissected one of these questions: Will the negative correlation between stocks and bonds turn positive?

By

Trevor Noren

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Quick Take

2022-05-31

China Macro and market Risk management Quick Take

Macro survey: Nervous about China

Respondents to our latest internal survey think the markets may be complacent about risks in China and emerging markets more broadly. Every quarter for the past six years, the Wisdom of Wellington team has surveyed around 100 of our Wellington colleagues across different investment disciplines and locations to get their views on what we see as the key macro questions of the day. The results can pinpoint where the firm’s views differ from the consensus and can also reveal significant shifts in our collective thinking.

By

Ben Cooper , CFA

Juhi Dhawan , PhD

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2023-02-28

EM debt Macro and market Risk management Credit Quick Take

Fixed income: Turn to nontraditional sectors for greater return potential in 2022

As discussed in our 2022 credit sector outlook piece, Break with tradition in 2022, we see opportunities in a few nontraditional credit sectors that stand out to us as having a higher probability of generating excess returns in the months ahead.

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Rob Burn , CFA

Campe Goodman , CFA

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2022-04-30

Climate Risk management Sustainability Multi-asset Sustainable investing Article

Hedging climate risk: The best defense is a good offense

Climate risks have the potential to create a long-term return drag on investment portfolios. We suggest a straightforward approach to hedging the deleterious effects of climate change.

By

Erika Murphy , CFA, CAIA

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2023-02-28

Volatility Macro and market Public pension (DB) Endowments & foundations Family office Insurance Private pension (DB) Union (Taft Hartley) USA China Multi-asset Emerging markets Inflation Portfolio construction Article

What if…? Contemplating five big questions for 2022

Could there be policy, inflation, or market surprises in 2022? Multi-Asset Strategist Adam Berger weighs the possibilities and the portfolio implications.

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2023-02-28

Inflation Utilities Interest rates Monetary policy Portfolio construction Global Industry Research Equity Fundamental equity Subadvisory Article

How to reposition portfolios for inflation with listed infrastructure

With the risk of structurally higher inflation increasing, Tom Levering and Ken Baumgartner assess whether allocating to listed infrastructure may help mitigate the impact of inflation.

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Ken Baumgartner , CFA

Tom Levering

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2023-01-31

Multi-asset Climate Portfolio strategy Inflation Sustainable investing Article

Integrating climate change into capital market assumptions: our approach and findings

Members of our Investment Strategy team explain how they are incorporating climate-related inputs, including physical and transition risks, into their capital market assumptions and outline the impact of these changes at the asset-class level.

Multiple authors

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2023-01-31

Outlook Private equity Macro and market Manager selection ESG Climate Alternatives investing Article

2022 Alternative Investment Outlook

Our 2022 Alternative Investment Outlook looks at 5 areas of focus for the coming year and explores private equity markets and ESG opportunities.

Multiple authors

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Article

2022-12-31

Outlook Yield Commodities Interest rates Inflation Portfolio construction Risk management Article

2022 Fixed Income Outlook

Our fixed income outlook for 2022, examines our views on inflation and interest rates and the role central banks will play in the coming year.

Multiple authors

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Article

2022-11-15

Health care Thematic exposure Macro and market Energy Utilities Factors Outlook EM equity ESG Disruption

2022 Equity Outlook

Our 2022 Equity Outlook explores opportunities in equity income and emerging markets, along with trends in health care and technology for the coming year

Multiple authors

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2023-01-27

Portfolio policy Alternatives investing Equity Alternatives Article

When public and private equity converge: An allocator’s guide

Multi-Asset Strategist Cara Lafond believes the time has come to recalibrate private equity portfolios to keep up with the evolution of the equity ecosystem. She offers a case for a more holistic view of public and private allocations, a fresh look at how allocators access growth, and the use of private and crossover strategies in innovative sectors.

By

Cara Lafond , CFA

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2022-12-30

Fixed income Macro and market Manager selection Risk management Factors Global Industry Research Quick Take

Navigating narrow bond markets: how diversified is your fixed income alpha?

Understanding an active manager’s path and style of alpha generation should be a critical part of anyone’s fixed income manager evaluation process, says Brendan Fludder of our Fundamental Factor Team.

By

Brendan Fludder , CFA

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2022-07-28

Distribution Equity Sustainable investing Global Stewards Climate Net zero Portfolio construction Event replay

Tying ESG to alpha — in practice

In a climate-driven capital cycle, companies that prioritise the environment and formulate clear climate strategies can become market leaders.

By

Yolanda Courtines , CFA

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2022-10-31

Multi-asset Portfolio strategy Liability-driven investing Portfolio construction Asset allocation Retirement USA Article

Setting ROAs for 2022: A guide for US corporate and public plans

How are pension plans adjusting their ROA assumptions? How do those assumptions line up with our long-term capital market assumptions? Find out in this annual update.

Multiple authors

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Article

2022-10-31

Outlook Equity Fixed income Commodities Inflation Volatility Asset allocation Risk management Net zero Multi-asset Article

2022 Multi-Asset Outlook

In our 2022 Asset Allocation Outlook, we expect markets to focus on central bank efforts to tame inflation look at 5 post-pandemic essentials for 2022.

Multiple authors

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Article

2022-12-31

Multi-asset Macro and market Public pension (DB) Subadvisory Union (Taft Hartley) Endowments & foundations Single Balance sheet Alternatives Equity Fixed income Portfolio policy Opportunities and risks Climate Article

Changing “weather” patterns in alternatives and climate

Multi-Asset Strategist Adam Berger offers a forecast on the future of alternative and climate-related investing, with insights on manager selection, public/private allocations, climate-aware capital market assumptions, and a range of other topics.

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2022-11-30

Climate Sustainable investing Equity Net zero Portfolio construction Opportunities and risks Fundamental equity Enduring Assets Article

Roadmap to net zero

We outline a potential roadmap to help investors transition towards a net-zero emissions portfolio and highlight two strategies that may serve as potential building blocks.

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2022-09-30

Fixed income Portfolio strategy Opportunities and risks Inflation Volatility Economic cycle Article

A credit strategy designed for all seasons

Today’s fixed income allocators face a variety of challenges. Against this backdrop, Multi-Asset Strategist Cara Lafond and Investment Directors Amar Reganti, Chris Perret, and Andrew Bayerl make the case for having an “all-weather” credit portfolio composed of carefully chosen building blocks.

Multiple authors

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Article

2022-11-15

Emerging markets China Macro and market Portfolio policy Equity Quick Take

Should China equity be a stand-alone allocation?

As China’s role on the world stage looms larger, should investors separate the country from the rest of their emerging markets (EM) equity allocation? Three of our multi-asset strategists provide their research-based take, along with some practical considerations.

Multiple authors

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2022-05-31

Liability-driven investing Fixed income Portfolio strategy Private pension (DB) Article USA

The evolution of derisking: Assessing new and time-tested liability-hedging ideas

As defined benefit plans contemplate the best path to their eventual “end state,” members of our LDI team update their liability-hedging research with a blend of traditional benchmark ideas and new opportunities to capitalize on changing market conditions and a broader investment universe.

Multiple authors

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Article

2022-09-30

Carbon emissions Sustainability Portfolio strategy Equity Fundamental equity Sustainable investing Climate Article

Climate conundrum: Will carbon constraints affect the pursuit of other portfolio objectives?

Members of our Fundamental Factor Team share their research on the potential for trade-offs when carbon goals are integrated into outcome-oriented, factor-based portfolios.

By

Katrina Price , CAIA

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Article

2022-10-31

Insurance Economic cycle Multi-asset Portfolio strategy Fixed income Whitepaper Insurance Multi-Asset Outlook

Strong but slowing growth: A tale of two narratives

Markets appear to be caught between two hard-to-reconcile narratives: The pace of economic growth looks poised to slow, but the level of growth is likely to stay relatively strong. Multi-Asset Insurance Strategist Tim Antonelli and Investment Strategy Analyst Daniel Cook offer insights for global insurers at this point in the cycle.

By

Daniel Cook , CFA

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2022-01-31

Multi-asset Opportunities and risks Portfolio policy Public pension (DB) Article

Investing for the long term (in a short-term world)

With short-term behavior evident across the financial landscape, Multi-Asset Strategist Adam Berger explores the intuitive and quantifiable advantages of being more long term, and he offers seven habits that can help asset owners cultivate a long-term mindset.

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2022-09-30

Emerging markets Fixed income Portfolio policy China Article Opportunities and risks

Chinese government bonds: How do they measure up in a multi-asset framework?

As China’s bond market continues to grow in size and liquidity, we consider the potential role the country’s government bonds can play in diversifying a broader sovereign portfolio, improving yields, and offsetting equity risk.

By

Alex Muir

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Article

2022-08-31

Carbon emissions Climate Portfolio construction Sustainable investing Equity Europe Fundamental equity Article

Tangible steps to decarbonise portfolios

We explore why equity investors need to start reducing exposure to climate risk and outline a balanced approach to moving portfolios towards net zero.

By

Portfolio Advisor Team

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2022-09-30

Equity Stewardship Portfolio strategy Opportunities and risks Sustainable investing Distribution Article

People, planet, profit: investing with a stewardship mentality

An investment strategy with a long-term mindset focused on companies that weigh the interests of all stakeholders and generate strong returns on capital can potentially deliver good investment returns while helping to address ESG concerns.

By

Yolanda Courtines , CFA

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Article

2022-07-31

Carbon emissions Climate Sustainability Equity Sustainable investing ESG Risk management Article

Has climate transition risk been priced into equities?

The recent runup of some “green” equities has investors questioning whether climate transition risks have been priced in. But the lack of Scope 3 emissions data and wide variation in the quality of companies’ climate transition plans leave gaping inefficiencies that active investors can still exploit.

By

Erika Murphy , CFA, CAIA

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Article

2022-05-31

China Equity Portfolio policy Emerging markets Article

Split decision: Should investors separate China from EM equities?

Many investors are contemplating whether to separate China from the rest of their emerging market equity allocation. Members of our Investment Strategy Group argue that the key decision point is not China’s dominance of the emerging market index, but the extent to which a standalone China allocation can be viewed as similar to an EM ex-China allocation. In this paper, they evaluate the similarity of the two allocations using a variety of metrics, from correlations to factors to sector composition.

By

Carolina San Martin , CFA

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Article

2022-07-31

Equity Balance sheet Portfolio policy Article Opportunities and risks

Why global insurers should take a closer look at REITs

Insurance Strategist Max Davies, Investment Director Will Lee, and Investment Specialist Ethan Sales look at the potential benefits of REITs for global insurers, plus why now may be an opportune time to consider this often unsung asset class.

Multiple authors

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Article

2022-07-31

Sustainability Multi-asset Climate Opportunities and risks Portfolio strategy

Update on key sustainability initiatives

We highlight progress on key sustainability initiatives: interim targets for our net-zero commitment, inclusion of location data in climate disclosures, and expanding our compliance with SFDR.

By

Andria Weil

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2021-12-31

Alternatives investing Long-short Asset allocation Article

Rethinking growth and where long/short directional strategies fit in

With allocators looking for opportunities to recalibrate their growth exposures, Multi-Asset Strategist Cara Lafond shares her “best fit” criteria for long/short directional strategies and explains why the financial sector appears to check all the boxes.

By

Cara Lafond , CFA

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Article

2022-07-31

Equity Article Fundamental equity Global Industry Research Active management Sustainability Thematic exposure

A theme is not an index

We explore the case for active thematic investing and highlight the importance of avoiding theme-washing.

By

Andrew Sharp-Paul

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Article

2022-06-30

Multi-asset Inflation Portfolio policy EMEA Article Americas APAC Opportunities and risks

A source-based approach to managing inflation risk

Multi-Asset Strategists Nick Samouilhan and Adam Berger present a source-based investment “playbook” that asset allocators can follow as they seek to neutralize the looming threat of higher inflation.

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