Coming into 2023, investors were cautiously optimistic about 2023 market returns; cautious considering the broad losses across asset classes during 2022 but optimistic about more attractive valuations and the inherent upside potential stemming from these price points. Nine months into the year, which of these opportunities have been “treats” for investors, and which have been “tricks”?
In this edition:
The biggest trick of them all: Investment grade fixed income
But not all of fixed income has been a trick…
Tricks come in all sizes: U.S. small-cap equities
Trick, treat, or both? U.S. growth stocks
Currency movements still tricky
More treat than trick: Emerging markets
If you’re not surprised, it’s not a trick: Commercial real estate
On Wednesday, April 10, Luis Sierra, CFA will be speaking at the 2024 College Savings Plan Network Prepaid Tuition Plan Mini Conference, being held virtually.
Luis will be joining a panel entitled, “Well-Funded Plans: Where Do We Go From Here?” with several investment professionals, described as follows: Most Prepaid Plans are in the enviable position today of being overfunded in comparison to our future participant obligations. This session will look at how we arrived in this position by reviewing the forces that led us to this overfunding. Should something in our fundamentals change (e.g. unit price, underlying actuarial assumptions, asset allocation of our investments)? Then, we have to ask what do we do with the surpluses? And finally, do we change Plan elements going forward?
The College Savings Plans Network (CSPN), an affiliate of the National Association of State Treasurers (NAST), is a national non-profit association and the leading objective source of information about Section 529 College Savings Plans and Prepaid Tuition Plans — popular, convenient, and tax-advantaged ways to save for college. This MiniCon will discuss topical issues impacting prepaid plans and how states are continuing to adapt to keep their plans relevant in a changing world. For more information, please visit the event webpage.
Linsey discussed Marquette’s approach to manager due diligence regarding ESG integration in the investment process, explaining the “second tier” of information Marquette’s questionnaire seeks out covering the team overseeing individual strategies and the firm’s record of engagement through proxy voting and shareholder resolution.
An article by Amy Miller, Senior Research Analyst at Marquette, was featured in Evercore Private Fund Group’s annual State of the Market publication. The article, The Four Virtues of Private Equity, presents a framework of considerations for private equity investors to effectively navigate the market in 2024.
Amy’s paper proposes four virtues — prudence in discerning appropriate allocations and timing, temperance in exercising consistency in pacing, fortitude in remaining invested through periods of stress, and justice in aligning manager and investor interests — that reaffirm that private equity portfolios should prove resilient over the long term.
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
Watch the flash talks from Marquette’s 2023 Investment Symposium livestream on September 15 in the player below — use the upper-right list icon to access a specific presentation.
On Thursday, March 21, Ryan P. Tracy, CFP® will be speaking at the 11th Annual Mountain States Institutional Forum in Denver, Colorado.
Ryan will be moderating the opening panel discussion, “Macro-Outlook & Asset Allocation: The Next 12 Months at a Glance,” described as follows: Top thinkers and chief investment officers share their investment views about current U.S. asset allocation strategies and their projected macroeconomic outlook for the next 12 months. This panel will aim to answer the following questions including but not limited to:
How do our panelists account for these and other factors that could affect their global investment and business decisions related to operating an institutional organization?
With inflation rates approaching record highs, how will the markets react, and what sort of fiscal policy will be on the horizon?
Is there a place for thematic investing and how are behavioral and social finance considered?
For more information, please visit the event webpage.
Recorded earlier this year, Director of Research and Partner Greg Leonberger, FSA, EA, MAAA, FCA‘s Dakota Live! Allocator Interview is now available for viewing.
Greg spoke with Chris O’Grady, CIO and Partner at dakota, and Tim Dolan, Vice President, Institutional Sales, in the interview, titled “Building Client Trust.” Dakota Live! general calls allow listeners to access in-depth information about investment allocators through a live interview reviewing each allocator’s current needs, the details of their platform, key analysts, and their outlook on the industry.
Greg Leonberger is the Director of Research for Marquette Associates. Greg is responsible for creating the firm’s capital markets research and directing investment strategy and policies. He also serves as the chair of the investment committee. A partner of the employee-owned firm, Greg has been with the company since 2008. Greg joins us at Dakota Live! to take us through Marquette Associates’ manager research process and what they look for in asset management partners. Join us to learn how the firm’s approach to client service has made Marquette Associates so successful over the years.
This does not constitute an offer to sell, or a solicitation of an offer to buy, any interest in any investment vehicle, and should not be relied on as such. Marquette is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Marquette including our investment strategies, fees and objectives can be found in our ADV Part 2/Form CRS, which are available upon request and on our website. Forward-looking statements cannot be guaranteed. Past performance is not indicative of future results. Investing comes with risk. The content herein is not an endorsement nor a testimonial for Marquette.
On Tuesday, December 5, Nat Kellogg, CFA will be joining Nasdaq eVestment’s quarterly Institutional Trends Webcast.
Nat will be providing consultant commentary alongside Nasdaq eVestment’s Russ Elliott, Head of Asset Management, Market Intelligence, and Michele Shauf, Head of Client Experience Strategy, Investment Intelligence. The webcast briefs traditional managers on the state of the global institutional market using eVestment data, covering:
Where assets are moving and the key flow drivers by universe and geography
Where abrupt changes in flows direction may indicate inflection points
Where investors in North America, Europe and APAC are concentrating their research activity, in advance of allocation decisions
The state of ESG: AUM, flows and allocator interests
New facets of ESG data, including universes ranked by carbon emissions
For more information and to watch the replay, visit the event webpage.
Commercial real estate is increasingly being dubbed the next shoe to drop as markets assess the fallout from the regional banking turmoil. Amid higher rates and tighter credit conditions, private real estate is now facing the same repricing dynamics that hit the equity and bond markets last year, and while further write downs are expected, the headlines are likely overblown. Fundamental and financing issues are largely concentrated within the office sector — which will likely see a correction over a longer time period but be manageable for most core real estate funds — while other sectors, including industrial and multifamily, are actually set to benefit over the next few years.
This newsletter analyzes the current commercial real estate investment landscape including valuations, fundamentals, debt markets, and private real estate returns.
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
On Thursday, September 21, Linsey Schoemehl Payne will be speaking at the Midwest Investors Annual Meeting hosted by LinkBridge Investors in Chicago.
Linsey will be joining a panel session entitled, “Institutional Investors Roundtable Discussion,” with several investment professionals, addressing the following question: What type of investment structure are institutional investors looking for and where is the greatest potential for growth?
The Midwest Investors Annual Meeting gathers the world’s leading managers along with institutional and private wealth investors from Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin to learn from and alongside industry thought leaders. For more information, visit the LinkBridge Investors website.
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