Services Tags: Investment Consulting

Patrick McDowell Joins CFA Institute’s GIPS Standards for OCIO Working Group

Launching September 1st, CFA Institute has announced the creation of the GIPS Standards for OCIOs Working Group to provide input into the development of GIPS® standards guidance for OCIOs. Marquette’s Patrick McDowell, CPA, CAIA was selected to join the 15-member Working Group, which will be responsible for helping to identify the requirements within the GIPS® Standards for Firms that are challenging to apply to the OCIO business as well as developing a consultation paper.

Per CFA Institute, “Firms comply with the GIPS® standards to fulfill their ethical duty to fully disclose and fairly present performance, advance fair competitive practices within the industry, and respond to the demands of prospective clients and investors.” For more information about CFA Society, visit their website.

James Wesner Speaking at ALTSMIA 2022 12/12

On Monday, December 12th, James R. Wesner, CFA will be speaking at ALTSMIA, an education-focused alternative investment event developed by CFA Society Miami, CFA Society of South Florida, CAIA Association, Miami Finance Forum, and Markets Group in Miami, Florida.

Jamie will be moderating a panel entitled, “What is the Outlook on the US Real Estate Market Now,” with several industry professionals. Diversification in a U.S. real estate portfolio has been difficult in the midst of extreme uncertainty in the last two years. This panel will discuss short-term opportunities as well as who will have to wait until later in the post-COVID world for improved prospects; how a core real estate manager can access and maximize fundraising interaction, and how ESG and sustainable investing have become more accessible within the asset class. 

ALTSMIA is specifically designed to provide relevant, education-focused content for individuals who manage, advise, allocate to, or oversee alternative investments. With leading allocating and management firms, the agenda will include topics such as global asset allocation, risk management, private markets, real assets, alternative beta strategies, private equity, hedge funds, ESG, crypto, and more. For more information, please visit the event webpage.

Flirting With a Bear Market: How Did We Get Here, and What Comes Next?

Quite simply, this has been the worst start to a year since the 1930s:

  • One of only 19 quarters since 1976 when both bonds and stocks posted negative returns;
  • One of only six of those quarters when bonds have underperformed stocks;
  • The worst four-month return for the S&P 500 since 1939.

2022 to date has featured a myriad of macroeconomic factors coming to a head: inflation at its highest level since the 1980s, the Federal Reserve responding with aggressive rate hikes, and increasing concerns about the health of the consumer leading to a possible recession. An evolving pandemic, a war in Eastern Europe, and draconian lockdown policies in the world’s second-largest economy and largest manufacturing hub have further added to the problem and complicated the solution. With these macro headwinds and uncertainties driving markets year-to-date, Marquette’s fixed income, U.S. equities, and non-U.S. equities teams discuss the impacts on their asset classes and weigh in on the outlook from here.

Read > Flirting With a Bear Market: How Did We Get Here and What Comes Next?

 

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.

Q1 2022 Market Insights Video

This video features an in-depth analysis of the first quarter’s performance by Marquette’s research team, reviewing general themes from the quarter and risks and opportunities to monitor in the coming months.

 Our Market Insights series examines the primary asset classes we cover for clients including the U.S. economy, fixed income, U.S. and non-U.S. equities, hedge funds, real estate, infrastructure, private equity, and private credit, with presentations by our research analysts and directors.

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Nichole Roman-Bhatty Speaking at RCRI 2022 Annual Conference 10/5

On Wednesday, October 5th, Nichole Roman-Bhatty, CIMA® will be speaking at the 2022 Resource Center for Religious Institutes (RCRI) Annual Conference, “A Synodal Church: Together in Service to the Church’s Mission,” in Dallas, Texas.

Nichole will be presenting a workshop for attendees alongside Ruadhri Duncan, Partner at Sarasin & Partners, and Therese Kieve, Stewardship Analyst at Sarasin & Partners, titled, “Incorporating the Values of the SDGs into Your Portfolio.” The three will address how the UN’s Sustainable Development Goals provide a framework for impact investing, including discussion of:

  • Utilizing the values of the SDGs to frame an Impact Investment Policy Statement and how that translates to the underlying investments of the portfolio;
  • How managers can incorporate sustainable investing values into their investment philosophy;
  • How managers actively engage the companies in the portfolio to drive positive change; and
  • How to measure the impact on companies/society driven by sustainable investments.

The RCRI National Conference brings together members of RCRI for a program that includes 40 workshops covering topics related to finance, canon and civil law, and planning for institutes in transition. For more information, please visit the event webpage.

Low Volatility: Factor or Fad?

The beginning of 2022 represented a change of pace for equity investors, as increased geopolitical and macroeconomic uncertainty drove the S&P 500 to its first negative quarter in two years. In light of recent performance trends and the potential for continued asset price fluctuation, market participants may be interested in assessing the viability of strategies with lower risk profiles that still offer the potential for long-term gains similar to those of the S&P 500. One such strategy is low volatility equity investing. Though it has fallen somewhat out of favor in recent years, low volatility is a generally accepted risk premia factor (akin to value, size, quality, etc.), meaning investors can theoretically expect to earn excess returns by allocating to lower volatility equities over the long run. This newsletter seeks to understand the rationale and evidence for this premium, explain recent performance of low volatility stocks, and examine the prospects of the style going forward.

Read > Low Volatility: Factor or Fad?

 

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.

OCIO Momentum Continues

One of the most significant evolutions in our business over the last decade has been the growth of our Outsourced Chief Investment Officer (“OCIO”) services platform. What at first seemed like chance requests over a decade ago from a handful of clients looking for additional help managing their portfolios has become increasingly mainstream. More than half of our prospective client engagements last year inquired about OCIO services. Our experience is certainly reflective of a broader industry trend as OCIO assets under management have grown from $90 billion to an estimated $2.7 trillion over the last fifteen years.¹ Given the industry growth and increased interest in OCIO services from our client base, we thought we’d share our experience as to why institutions are asking about OCIO and what the major challenges are that Marquette has helped these clients solve.

Read > OCIO Momentum Continues

 

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.

Life During Wartime: Assessing the Market Impact of the Russia/Ukraine Conflict

Recent days have seen an escalation of political tensions in Eastern Europe, and on February 24th, Russian forces began conducting large-scale military operations in Ukraine. These actions have drawn widespread condemnation from the international community, with NATO repositioning troops along its eastern flank and both the United States and European Union announcing intentions to impose sanctions on a variety of Russian financial institutions. The conflict has also threatened the stability of global markets, particularly those areas of the world economy that are most sensitive to energy and the performance of emerging market countries. The aim of this newsletter is to assess the ramifications of Russian actions vis-à-vis the broad market and determine the potential implications of further escalation of the conflict going forward, including:

  • Equity index performance
  • Index exposure to Russia and Ukraine
  • Commodity market expectations
  • Central bank policy and inflation impacts
  • Historical impact of similar exogenous shocks on equities

Read > Life During Wartime: Assessing the Market Impact of the Russia/Ukraine Conflict

 

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.

Brian Wrubel Speaking at Institutional Investor Roundtable for Consultants & Institutional Investors 6/22

On Wednesday, June 22nd, Brian Wrubel will be speaking at Institutional Investor’s Roundtable for Consultants & Institutional Investors, originally scheduled for October 2021, in Chicago.

Brian will be joining a main stage panel entitled, “How Consultants Are Providing an Edge,” with several investment professionals. The panel will address the following: The steady growth of evolving partnership models – OCIOs, direct and co-investments – continues to prompt a big question for investors: beyond manager selection, what role do consultants play?

  • In the evolving landscape, where are consultants adding value? How is that being measured?
  • How can consultants add value to allocators who are building out their own investment teams?
  • What tangible or intangible “assets” do consultants bring that can’t be accessed elsewhere?

The Consultants Roundtable will bring together large and boutique investment consultants and institutional investors of all types and sizes to discuss investment management in a post-pandemic era. For more information, visit the event webpage.

In Context Video: Is the 60/40 Portfolio Dead Forever?

In this video, the authors of our recent white paper discuss the 60/40 model portfolio — a long-time approach to portfolio construction that generally consists of a 60% allocation to equities and a 40% allocation to fixed income. From the decades of success the 60/40 portfolio has experienced (and why) to skepticism about its future viability in light of the current low interest rate and expensive equity market environment and how organizations may still be able to meet their return targets, we seek to answer if the 60/40 portfolio’s efficiency is a thing of the past.

Marquette’s In Context series brings our latest research to your screen, with discussion led by the authors behind Marquette’s papers and newsletters. From current events and trends to portfolio strategy and the broader economic landscape, we explore the questions investors are asking with consideration and the context you need to know.

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

 

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. 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, which is available upon request.