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.

Halftime Market Outlook: A Mixed Bag

Last week, we hosted our “Halftime” Market Insights Webinar. As the host, my job was to introduce the analyst for each section and then summarize his or her comments before moving to the next speaker. After the fourth section, I found myself using the term “mixed bag” for the third time; it was at that moment that I knew I had my title for this letter!

Of course, “mixed bag” is an overused and unoriginal cliché to describe a perspective that features both positive and negative elements. If we focus solely on the first half of the year, it is hard to find much good news at all between negative economic growth, historically high inflation, and hefty losses in both the equity and bond markets. Even the good news is rooted in how bad things are…after all, how much longer can inflation stay above 9%? Could the equity market REALLY drop another 20% the second half of the year? Alas, our “mixed bag” descriptor admittedly relies on the assumption that conditions should improve at least somewhat for the remainder of the year, though likely not enough to reverse the damage inflicted during the first half. On an absolute and relative basis, growth and return figures should be better, but it is naïve to think that all of the bad news is behind us.

In this edition:

  • Inflation expectations
  • Consumer and business sentiment
  • The S&P 500’s worst six-month start to a year since 1970
  • Recession probability
  • The Agg’s worst start to a year ever
  • Bonds go back to being bonds

Read > Halftime Market Outlook: A Mixed Bag

 

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.

2022 Halftime Market Insights Video

This video is a recording of a live webinar held July 20th by Marquette’s research team, featuring in-depth analysis of the first half of 2022 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.

Sign up for research alerts to be notified when we publish new videos and invited to future webinars.
For more information, questions, or feedback, please send us an email.

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.

The Business Cycle Diaries

Even the casual observer of market dynamics is likely aware that the world economy appears to be on uneven footing. Elevated price levels, increasingly restrictive monetary policy, and geopolitical turmoil have plagued securities markets during the first half of the year and are now dampening expectations for global GDP growth going forward. Given this myriad of macroeconomic challenges, many investors are now assessing the possibility of a prolonged slowdown in economic activity for both the United States and the rest of the world.

The aim of this newsletter is to gauge the extent to which the global economy is at risk of such a downturn by examining the state of the current domestic business cycle, inferring its likely next stage, and reviewing which asset classes and investing styles tend to be the most attractive during each phase of the cycle.

Read > The Business Cycle Diaries

 

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.

Can Bond Investors Outsmart the Market?

While it is generally accepted that successfully and consistently timing the equity market is a loser’s bet, the same sentiment is not heard as often in the bond market. However, timing interest rates is just as difficult as equity markets and can lead to the same patterns of underperformance over multiple market cycles. Nonetheless, the recent rate volatility may be a temptation to shorten duration in anticipation of further rate rises. The following analysis examines why this strategy could be difficult to execute successfully, and why we recommend that clients stay the course and remain invested in line with their investment policies.

Read > Can Bond Investors Outsmart the Market?

 

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.

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.

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.

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.

Sign up for research alerts to be notified when we publish new videos here.
For more information, questions, or feedback, please send us an email.