Services Tags: Asset Allocation

2020 Market Preview Video

This video coincides with our annual Market Preview newsletters and includes a recap of 2019’s performance and what investors can expect heading into 2020. 2019 was certainly a profitable year for investors as traditional and alternative asset classes delivered positive returns. As we enter 2020, there are a litany of questions facing global markets ranging from the U.S. election to trade disputes to global monetary policy, all of which will undoubtedly influence investment returns.

This video is part of our Market Insights series, a quarterly presentation designed to brief clients on the market as soon as possible after quarterly market data becomes available. Members of our research team discuss the overall U.S. economy, along with fixed income, U.S. and non-U.S. equity, hedge funds, private equity, real estate, and infrastructure.

For more information, questions, or feedback, please send us an email.

Nat Kellogg Speaking at SBAI Institutional Investor Roundtable 11/28

On Wednesday, November 28, Nat Kellogg, CFA, will be speaking at the Standards Board for Alternative Investments (SBAI) Institutional Investor Roundtable in Chicago.

Nat will be joining the “Allocator Panel,” featuring senior representatives from various investment managers, funds, and consultants. The discussion will focus on two main topics:

Allocation priorities

  • Alpha vs. beta
  • Search for Alpha – where next?
  • Alignment and fees – what is the state of play?

Governance of pension funds – outsourcing versus internalising – an eternal circle?

  • Where to draw the line?
  • Benchmarking of internal capabilities
  • How much experience to retain?
  • Does size matter?
  • Implications for alternatives allocation

The SBAI brings together managers, investors and other industry parties to tackle topical issues through practical case studies and interactive discussions, with the belief that responsible standards of practice strengthen the alternative investment industry for the benefit of both investors and managers.

For more information, please visit the SBAI events page.

Alternatives 101 Video Series

Our Alternatives 101 video series covers each of the major alternatives asset classes, with guidance provided by several of Marquette’s research analysts and directors. In contrast to traditional investments, alternatives investing includes asset classes other than stocks, bonds, and cash (reference our Investing 101 series for more information about traditional investing concepts). This series aims to introduce trustees, staff, and other investors to the key terms and concepts they may encounter when investing in these typically less familiar asset classes.

The series covers:

View each talk in the player below— use the upper-right list icon to access a specific presentation.

For more information, questions, or feedback, please send us an email.

Private Equity Position Paper – 2019 Update

This position paper explores the fundamentals of private equity as an asset class. Particularly, we examine the subcategories of venture capital, growth equity, buyout, direct lending/ mezzanine debt, and distressed, and the investment styles within them; mechanics of investing in private equity including fund structure, commitment period, cash flow, and the J-curve; investor fees and performance; and recent trends. Recommendations and guidance towards the investment manager search process and making an allocation to the asset class are also included.

Download PDF > Private Equity Position Paper

 

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.

Third Quarter Review of Asset Allocation: Risks and Opportunities

The third quarter saw mixed results for financial markets. Economic fundamentals generally remain strong but signs of deterioration are starting to emerge. Unemployment currently hovers around 3.5%, and inflation is near the Fed’s target of 2%. However, 3Q GDP growth was under 2% (though the 1.9% figure exceeded the 1.7% estimate), and the PMI index has been below 50 since August (a reading under 50 is indicative of contraction in the manufacturing sector). Overall, the most important global trends we see are the following:

  • The U.S.-China trade conflict continues to weigh heavily on both countries as talks remain ongoing;
  • The Federal Reserve (“Fed”) reversed course by cutting interest rates and further cuts are still possible;
  • The U.S. Treasury yield curve inverted briefly, which historically has signaled a recession over the subsequent 12–24 months;
  • Brexit negotiations were extended to January 31, 2020, therefore further perpetuating the uncertainty around the UK’s exit from the EU;
  • Negative interest rates continue to grow in prevalence around the world.

The impact of these shifting dynamics is explored further in this newsletter as we review third quarter performance and expectations going forward for each of the major asset classes.

Read > Third Quarter Review of Asset Allocation: Risks and Opportunities

 

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.

Jeremy Zirin Speaking at 2018 Central States Institutional Forum 3/20

On Tuesday, March 20, Jeremy Zirin, CAIA, will be speaking at the Markets Group 5th Annual Central States Institutional Forum in St. Louis.

Jeremy will join the panel, “Evolving Infrastructure Environment”, and explore how investors are assessing the infrastructure’s longer-term impact on returns and positioning their portfolios to avoid potential risks.

Following the financial crisis, strategies to incorporate infrastructure into the portfolio construction and asset allocation processes continue to evolve as governments seek partnerships and third-party financing to develop energy, water, transportation and social projects critical to economic growth. The panelists will also examine specific strategies investors are using to integrate infrastructure investments into portfolios.

For more information, please visit the Markets Group event page.

Marquette Speaking at PartnerConnect East Event 3/20

On Tuesday, March 20, Marquette will be speaking at the PartnerConnect East 2018 conference in Boston.

As a speaker on Buyouts Magazine’s Panel 5, Derek Schmidt, CFA, CAIA will present on capital call loans, focusing on the pros and cons of this particular portfolio funding strategy.

Hosted in conjunction with PE HUB Network, Buyouts Magazine, and Venture Capital Journal, the flagship conference is designed to connect limited partners, fund managers and service providers to information about critical market issues. For more information, please visit the PartnerConnect East website.

Investing 101 Video Series

Our Investing 101 video series covers the fundamentals of investing. This series aims to create a knowledge base for trustees, staff, and other investors of the key terms and concepts that they encounter most frequently, with guidance provided by several of Marquette’s research analysts and directors.

The series covers:

Marquette encourages open dialogue with our consultants and research team. For more information, questions, or feedback, please send us an email.

Mike Spychalski Speaking at NIAFPD Annual Conference 1/26

On Friday, January 26, Mike Spychalski, CAIA, will be speaking at the Northern Illinois Alliance of Fire Protection District’s (NIAFPD) 25th Annual Conference in Oak Brook, IL.

Mike will lead a discussion called “Managing Risk & Setting Asset Allocations in Pension Portfolios”. The conversation will focus on challenges associated with managing portfolio risk and returns given current market conditions.

The NIAFPD event is an educational conference designed for trustees, commissioners, chief officers and administrative staff. Attendees will have the opportunity to gather and exchange ideas and information pertaining to fire protection districts.

For more information, please visit the NIAFPD event page.

Marquette Speaking at Diverse and Emerging Manager Forum 1/26

On Friday, January 26, Marquette will be speaking at the Diverse and Emerging Manager Forum and Reception in Houston.

As a panelist at the event hosted by the National Association of Securities Professionals (NASP), Samantha Grant will share perspectives on asset allocation, dispelling the myth of alternatives versus traditional investing and providing insight into potential upcoming business opportunities.

The forum invites investment professionals to hear from plan sponsors, industry practitioners, and policymakers on ways to position their firms to remain competitive as the diverse and emerging manager landscape continues to evolve.

For more information, please visit the NASP forum event page.