Category: White Paper

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.

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.

Stress Testing Portfolios for Inflation

Examines different asset classes’ performance during times of high, rising, falling, unexpected, and expected inflation.

High inflation continues to be a worry for investors, most especially how it could lead to portfolio losses. The following paper examines different asset classes’ performance during times of high inflation, rising inflation, unexpected inflation, and expected inflation. Historical data is analyzed to identify investment themes that offer protection from both high and unexpected levels of price escalation.

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Private Equity Position Paper

The first of a two part series, this paper provides an overview of the private equity asset class as well as recommendations and allocation guidance.

This paper is meant to provide an overview of the private equity asset class, an analysis of the qualitative and quantitative factors that should be used to assess private equity funds and determine their appropriate use in a portfolio, and lay-out and justify Marquette Associates’ position on the use of private equity funds in client portfolios. Recommendations as well as guidance towards making an allocation to the asset class are also included.

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Senior Secured Loans Position Paper

A comprehensive overview of the senior secured loans asset class, including history, return profile, risk analysis, valuation, and how to invest.

Senior secured loans have become increasingly attractive to institutional investors over time because of their floating rate coupon. Prior to 2008 they further appealed to investors because of their perceived low volatility. Though the volatility profile has evolved, senior secured loans are still an attractive asset class for many institutional investors. This paper offers a comprehensive view of the asset class, including history, return profile, risk analysis, and how to invest in senior secured loans.

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Hedge Fund Position Paper

The first of a two part series, this paper provides an overview of the hedge fund asset class as well as recommendations and allocation guidance.

This paper is meant to provide an overview of the hedge fund asset class, an analysis of the qualitative and quantitative factors that should be used to asses hedge funds and determine their appropriate use in a portfolio, and lay-out and justify Marquette Associates’ position on the use of hedge funds in client portfolios. Recommendations as well as guidance towards making an allocation to the asset class are also included.

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Real Estate Position Paper

The first of a two part series, this paper provides an overview of the commercial real estate asset class as well as recommendations and allocation guidance.

The following paper constitutes the first of a two part series on commercial real estate. This first paper seeks to establish a fundamental understanding of the asset class. More specifically, the various styles, benefits, risks, mechanics, and benchmarks relevant to commerical real estate investments are examined, with an emphasis on quantitative and qualitative illustrations. Recommendations as well as guidance toward making an allocation to the asset class are also included.

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Please also reference our 2018 Update of this position paper.

TIPS Position Paper

Analyzes the asset class in detail, and offers a recommendation for investors interested in adding the asset class to their portfolios.

Given the amount of fiscal and monetary stimulus enacted to revive the United States economy, many are concerned about inflation emerging as a credible threat to the economic recovery. While such a threat is not foreseeable in the near future, unexpected inflation can negatively impact portfolios. However, several asset classes can protect against higher than expected inflation. Treasury Inflation Protected Securities (“TIPS”) is one asset class which offers inflation protection. The following paper analyzes the asset class in detail, and offers a recommendation for investors interested in adding the asset class to their portfolios.

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Understanding Currency Overlay

As portfolios have expanded to include international investments, investors must be aware of the currency risk inherent in foreign assets. Currency overlay programs provide a mechanism to mitigate currency risk. This paper examines how currency overlay programs can be used to reduce the currency risk embedded in foreign denominated portfolio allocations.

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