Author: cvernon

Portfolio Rebalancing Policy: A Fiduciary Duty in Good Markets & Bad

Live webinar to discuss our upcoming paper on rebalancing and guidelines for implementing a rebalancing policy.

Portfolios must be rebalanced to maintain the risk/reward profile set in the original asset allocation. But how often should portfolios be rebalanced? And what guidelines should be used to determine when to rebalance? As institutional investment stewards, trustees and their investment consultants have a fiduciary duty to set a clear policy on portfolio rebalancing.

Register now to join us for a live webinar to discuss our upcoming paper on rebalancing [Ed: updated in 2018] and guidelines for implementing a rebalancing policy. We’ll address key questions to consider and discuss in more detail with your consultant.

 

Live Webinar – Wednesday, May 16, 2012 – 1:00-1:45 PM CT

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LDI Position Paper Part 2 (of 2)

LDI Position Paper Part 2 (of 2). Intended as a resource for plan sponsors who have decided to implement an LDI strategy, and covers the practical issues surrounding implementation and maintenance, along with risks.

Over the last five years, Liability Driven Investing (“LDI”) has grown in popularity as an investment strategy for pension plan sponsors. Our two part position paper series on LDI takes a close look at LDI strategies, with an emphasis on the “if” and “how”: deciding IF an LDI strategy is appropriate for a given pension plan, and if so, HOW it should be implemented. In Part I, we examined the motivations for LDI strategies, and which types of plans are best suited to adopt an LDI mandate. Part II is intended as a resource for plan sponsors who have decided to implement an LDI strategy, and covers the practical issues surrounding implementation and maintenance, along with risks. Ultimately, the following paper should help plan sponsors decide if an LDI strategy is appropriate for their plans.

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LDI Position Paper Part 1 (of 2)

LDI Position Paper Part 1 (of 2).  Examines the motivations for LDI strategies, and which types of plans are best suited to adopt an LDI mandate.

Over the last five years, Liability Driven Investing (“LDI”) has grown in popularity as an investment strategy for pension plan sponsors. Our two part position paper series on LDI takes a close look at LDI strategies, with an emphasis on the “if” and “how”: deciding IF an LDI strategy is appropriate for a given pension plan, and if so, HOW it should be implemented. In Part I, we examine the motivations for LDI strategies, and which types of plans are best suited to adopt an LDI mandate. We also cover a progressive series of LDI portfolios to demonstrate how they can help control funded status risk. Ultimately, the following paper should help plan sponsors decide if an LDI strategy is appropriate for their plans.

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Commodities Position Paper

Explores commodities as an investment, focusing on investment vehicles, the sources and attributes of historical risk and return, and commodities’ place in an investment portfolio.

Skyrocketing commodity prices combined with the poor performance of equities have led to an increased interest in commodity allocations. Commodities have not historically been part of an institutional investor’s asset allocation, and some even question whether commodities are an asset class.

This paper will explore commodities as an investment, focusing on investment vehicles, the sources and attributes of historical risk and return, and commodities’ place in an investment portfolio. Commodities as an investment are introduced and then the mechanics of long-only futures positions are explained. Next, the drivers of individual commodity returns and portfolios of commodity positions are examined. Finally, commodities are analyzed in the context of a balanced portfolio.

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Commodities: Institutional Asset Class Ascending

A briefing on the commodities asset class and key points from our newly published position paper.

Skyrocketing commodity prices combined with the poor performance of equities have led to an increased interest in commodity allocations. Commodities have not historically been part of an institutional investor’s asset allocation, and some even question whether commodities are an asset class.

Register now to join us for a live webinar to discuss commodities as an institutional asset class with senior research analyst Eric Przybylinski and director of research Greg Leonberger. We’ll explore commodities as an investment, focusing on investment vehicles, the sources and attributes of historical risk and return, and commodities’ place in an investment portfolio.

We’ll brief participants on key points from our newly published position paper, including:

  • An introduction to commodities as an institutional asset class
  • The mechanics of long-only futures positions
  • Drivers of individual commodity returns and portfolios of commodity positions
  • Commodities as part of a balanced portfolio

 

Live Webinar – Thursday, March 1, 2012 – 1:00 PM CT

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The Emergence of Infrastructure

A briefing on the infrastructure asset class and key points from our newly published position paper.

Join us for a live webinar to discuss the asset class with our infrastructure authority Elizabeth Francis and investment consultant Miguel Zarate.

We’ll brief participants on key points from our newly published infrastructure position paper [Ed: note 2018 update], including:

  • History of infrastructure – From its early beginnings in the 1980s to its current day role in an institutional portfolio
  • Benchmarking infrastructure investing – The challenges of investing in a less established asset class with a limited performance history
  • The case for infrastructure in institutional portfolios – From the growing opportunity set to diversification and hedging against inflation
  • Infrastructure related risks – Understanding the variety of risks that may adversely affect infrastructure investments
  • Infrastructure manager due diligence – With more than 270 firms and 450 funds, manager selection is critical to maximizing returns
  • Recommendation – Including open-end vs. closed-end funds and why this long-term investment is well matched for some pension funds

 

Live Webinar – Wednesday, November 30, 2011 – 10:00 AM CT 

Who should attend: Institutional investment stewards, investment managers

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Infrastructure Position Paper

Examines the infrastructure asset class in great detail, from its early beginnings in the 1980s to its current day role in an institutional portfolio.

Infrastructure is a relatively new asset class to institutional investors and over the last five years has emerged as a sustainable addition to client portfolios. The following paper examines the asset class in great detail, from its early beginnings in the 1980s to its current day role in an institutional portfolio. In particular, the nuances of infrastructure, as well as its unique characteristics are discussed in an effort to cultivate a thorough understanding of the asset class. Recommendations as well as guidance towards making an allocation to the asset class are also included.

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Please see our 2018 Update to this Infrastructure position paper.

Investment Manager Search Stewardship

Live webinar to discuss a best practice approach to fulfilling your fiduciary duty to meet the investment manager search stewardship “Big 3” – high alpha, high integrity and low fees.

Many institutional investment programs suffered major losses during the 2008-2009 financial crisis due to poor products and even outright fraud. Lack of a disciplined investment manager search due diligence process was almost always the root cause.

Register now to join us for a live webinar to discuss a best practice approach to fulfilling your fiduciary duty to meet the investment manager search stewardship “Big 3” – high alpha, high integrity, and low fees.

Continuing the conversation from our last webinar, Investment Stewardship 2011: Fiduciary Duty in An Uncertain Decade, we’ll dive deeper into two key fiduciary responsibilities that lead to high alpha, high integrity, and low fees:

  • Quality control – Get to know managers with thorough due diligence steps to avoid fraud and poor products. We’ll review a five-step process for fulfilling your manager search fiduciary duty in detail.
  • Cost control – Keep costs from eroding performance by actively negotiating so-called “industry standard” fees. We’ll review a case study where the institution realized significant cost savings through fee analyses and aggressive negotiation.

 

Live Webinar – Friday, July 22, 2011 – 1:00 PM CT
Investment Manager Search Stewardship
The Fiduciary Duty of High Alpha, High Integrity & Low Fees

Who should attend: Institutional investment stewards, investment managers

Please contact us for access to this video.

High Yield Position Paper

Clarifies the myths about the asset class, and sheds light on the benefits and risks of high yield bonds.

High yield bonds are a relatively new asset class in the institutional world and consequently not always understood. The following paper seeks to clarify the myths about the asset class, as well as shed light on the benefits and risks of high yield bonds. Critical topics such as return distribution, correlation to the credit cycle, and how to access the asset class are covered. Throughout the paper, a premium is placed on establishing a thorough explanation of the asset class and why high yield bonds should be included in institutional portfolios.

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Please see our 2017 High Yield Position Paper update.

Investment Stewardship 2011

Discusses today’s emotional market volatility and a focused approach to meeting the requirements of investment stewardship in 2011 and beyond.

In the wake of the 2008-2009 financial crisis, institutional investment stewards are faced with more complex fiduciary duties than ever.

Join us for a live webinar to address today’s emotional market volatility and discuss a focused approach to meeting the requirements of investment stewardship in 2011 and beyond.

This webinar will review the three key fiduciary responsibilities that lead to successful investment programs in good markets and bad:

  • Risk control – Stay off the greed-fear roller coaster with complete clarity on asset allocation and a conviction to rebalance as needed.
  • Quality control – Get to know your managers with thorough investment manager search due diligence steps to avoid fraud and poor products.
  • Cost control – Keep costs from eroding performance by actively negotiating so-called “industry standard” fees.

 

Live Webinar – Wednesday, May 25, 2011 – 1:00 PM CT
Investment Stewardship 2011
Fiduciary Duty in An Uncertain Decade

Presenters: Brett Christenson, CFP®, CFA and Greg Leonberger, FSA

Please contact us for access to this video.