Author: cvernon

Global Equity Position Paper

The following paper examines global equity as an asset class, focusing on justifications and concerns for investing globally rather than via a traditional partitioned U.S. and non-U.S. approach. Furthermore, relative performance, risks, and meaningful outperformance from active management are also considered. Ultimately, this paper strives to investigate the theoretical reasons for global investing and whether these same arguments hold true in reality.

As economies and capital markets become increasingly more integrated, interest in global equity investing has soared over the past few years, making some U.S. institutional investors question the traditional partitioned approach of U.S. and non-U.S. equity allocations. Over the last ten years, allocations to global equity mandates (as a percentage of new commitments to global and international funds) have risen from 6% in 2000 to almost 40% by 2011.1 In essence, U.S. investors have increased global equity mandates as a percentage of their total equity allocations, meaning a shift from a partitioned U.S., non-U.S. approach to a global program.

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3Q 2012 Market Environment Briefing

A briefing on our 3Q 2012 Market Environment report, covering the overall U.S. economy, fixed income, U.S./non-U.S. equity, hedge funds, private equity, real estate and infrastructure.

Live Webinar – Friday, October 12, 2012 – 1:00 PM CT

Please join Marquette’s asset class analysts for a live webinar briefing on our 3Q 2012 Market Environment report. This webinar series is designed to brief clients on the market as soon as possible after quarterly market data becomes available.

The overall U.S. economy will be discussed, along with fixed income, U.S./non-U.S. equity, hedge funds, private equity, real estate and infrastructure.

Live webinar attendees will be able to submit questions to the presenters and vote in audience polls during the event. Questions will be answered as time allows during the Q&A session towards the end of the webinar.

If you are unable to attend the webinar live, you can also view it afterward on demand. Registrants will automatically receive a follow-up email shortly after the end of the webinar to notify them of webinar recording availability.

Please contact us for access to this video.

Global Bonds Position Paper

Over the last several years institutional investors have adjusted their fixed income portfolios to include significant allocations to global bonds. This trend represents a regime shift from prior years when bond portfolios were mostly concentrated on U.S. issuers. However, as the trend has gained momentum, so has the need to truly understand global bonds and how they can impact a portfolio. In this paper, we outline our position on investing in global bonds from the perspective of a U.S.-based investor.

The following paper examines global equity as an asset class, focusing on justifications and concerns for investing globally rather than via a traditional partitioned U.S. and non-U.S.
approach. Furthermore, relative performance, risks, and meaningful outperformance from active management are also considered. Ultimately, this paper strives to investigate the theoretical reasons for global investing and whether these same arguments hold true in reality.

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Portfolio Rebalancing Guide

Failure to rebalance a portfolio can lead to a much different risk and return profile than suggested by the original asset allocation. Although straightforward in concept, the topic of rebalancing is not always understood, most especially its importance in times of market stress. In this paper, we address the most common rebalancing programs utilized by investors, and investigate the advantages of each.

Regularly rebalancing portfolios is one of the key duties of trustees and other fiduciaries responsible for managing institutional portfolios. Asset allocations are set to provide a predetermined risk/reward profile that fits a fund’s objectives and constraints. Portfolios are rebalanced when they drift away from policy target in order to maintain the risk/reward profile implicit in the original asset allocation. How often should clients rebalance their portfolios? What guidelines should clients use to determine when to rebalance? What are the costs and benefits associated with rebalancing? This paper takes a rigorous look at rebalancing, and provides some guidelines for implementing a rebalancing policy.

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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

Please contact us for access to this video.