Services Tags: Asset Allocation

2015 Market Preview

January 2015

Similar to previous years, we offer our annual market preview newsletter. Each year presents new challenges to our clients, and 2015 is no different: U.S. equities are at all-time highs, uncertainty reigns for international equities, and to everyone’s surprise, interest rates fell dramatically in 2014…but are poised to rise from historic lows over the next year. In the alternative space, real estate remains a solid contributor to portfolio returns, and private equity delivered on return expectations, though dry powder is on the rise. Hedge fund results were mixed, but have shown to add value in past rising interest rate environments. Further macroeconomic items that bear watching for their potential impact on capital markets include the precipitous fall in oil prices, the strengthening U.S. dollar, job growth, and international conflicts.

Download PDF

2015 Market Preview Briefing

A briefing on our 2015 Market Preview 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 – Thursday, January 15, 2015 – 1:00-1:45 PM CT

Please join Marquette’s asset class analysts for a live webinar briefing on 2015 capital market expectations. Potential market drivers and general outlooks will be discussed for the overall U.S. economy, 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 during the final 15 minutes of the webinar, as time allows.

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.

Portfolio Strategies for a Rising Interest Rate Environment

2014 Marquette Investment Symposium session

In this presentation from our 2014 Investment Symposium, we explore current interest rate levels, our perspective as consultants, and strategic solutions for mitigating the effects of rising rates on portfolios.

Recorded Friday, September 12, 2014
2014 Marquette Investment Symposium

Please contact us for access to this video.

Emerging Markets: The Case for Sub-Asset Class Diversification

March 2014 Investment Perspectives

The purpose of this newsletter is not to debate whether one index provider’s methodology is superior to another index provider’s; there are several papers in the market place that expertly do this in great depth. Rather, we wish to highlight that given the broad choice of core equity EM mandates that are available in the marketplace, investors should look to be on the same definitional page as their chosen or desired asset manager(s) as to what constitutes “emerging market” exposure.

Download PDF

Emerging Market Debt

This paper explores EMD as an asset class, focusing on the benefits and risks. Further, EMD characteristics and their impact on portfolio dynamics are discussed. Recommendations as well as guidance toward making an allocation to the asset class are included.

Due to risks, uncertainty, and overall lack of credit quality, institutional investors have not historically included emerging market debt (“EMD”) in their portfolios. However, the investment landscaped has changed over the past few years. Driven by low interest rates and deteriorating fundamentals in the United States and other developed countries, investors’ interest in EMD has skyrocketed in recent years.

This paper explores EMD as an asset class, focusing on the benefits and risks. Further, EMD characteristics and their impact on portfolio dynamics are discussed. Recommendations, as well as guidance toward making an allocation to the asset class, are included.

Download PDF

Emerging Markets: A Crisis of Confidence

February 2014 Investment Perspectives

After a disappointing 2013 and a significant sell-off to begin 2014, many investors are questioning their ongoing allocations to emerging markets (“EM”). Since 2013, EM countries have consistently underperformed their developed market counterparts, with equities losing 8.8% and local currency debt declining 12.5%. This compares to the S&P 500 and the EAFE which have returned 27.2% and 20.1%, respectively, over the same time period.

Download PDF

2014 Market Preview

January 2014

Similar to previous years, we present our annual market preview newsletter. Each year presents new challenges to our clients, and 2014 is no different: We are coming off a banner year for U.S. equities, low interest rates continue to stymie fixed income investors, and while developed market equities enjoyed a strong 2013, emerging market stocks sputtered. In the alternative space, real estate and hedge funds proved accretive to portfolio returns, while growing dry powder in the private equity space is starting to raise a few eyebrows.

Download PDF

3Q 2013 Market Briefing

A briefing on our 3Q 2013 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 25, 2013 – 1:00-1:45 PM CT

Please join Marquette’s asset class analysts for a live webinar briefing on our 3Q 2013 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.

The State of Real Estate: Location, Location, Location…Where Are We?

October 2013 Investment Perspectives

Core real estate has been an attractive investment since the market’s recovery began in the first quarter of 2010. In this three-and-a-half-year period, the NCREIF Property Index (“NPI”) has returned a stunning 50.7%. Given this 13.1% three-year annualized return and unrelenting appreciation gains reported quarter after quarter, investors may wonder if they are too late to enter into private real estate or if their current investments are poised for a downturn. This newsletter will address these very issues by examining the health of the real estate market as suggested by the key indicators of performance, fund leverage and cash balances, transaction volume, asset values, income environment, and investor appetite.

Download PDF

Navigating the Low Rate Environment for Healthcare Organizations

September 2013 Investment Perspectives

Despite the recent increase in long-term interest rates, the low rate environment is now more than four years old and continues to create challenges for investors. While interest rates are notoriously volatile the current low rate environment and negative real yields on risk free securities is unprecedented in its duration. Given the Federal Reserve’s clear indication that it will not raise interest rates until there is a substantial drop in unemployment or increase in inflation, it appears the current low rate environment is unlikely to change in the near future. While this creates challenges for all institutional investors, it creates a unique set of challenges for non-profit health care organizations (“HCOs”).

Download PDF