Services Tags: Investment Consulting

2021 Market Preview Video

This video coincides with our 2021 Market Preview newsletters and provides a high-level summary of each, including analysis of last year’s performance as well as trends, themes, opportunities, and risks to watch for in 2021.

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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Tech Bubble Revisited? Contrasting the Current Landscape with the Dot-Com Boom and Bust

Continued strong performance of technology-oriented stocks through disparate economic environments, elevated valuations, and increasing concentration within the growth space have caused many to draw parallels between present-day conditions and those of the late 1990s. Some feel as though investor exuberance surrounding innovative companies is irrational, and that 2021 could bring with it a paradigm shift in terms of sentiment and market leadership.

This newsletter seeks to assess the extent to which the current equity landscape mirrors the Dot-com Bubble with an analysis of performance, sector concentration, profitability fundamentals, and valuations.

Read > Tech Bubble Revisited? Contrasting the Current Landscape with the Dot-Com Boom and Bust

 

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.

Additional Relief Stimulus to Bridge Gap as Vaccine Distribution is Underway

While the recent approval and rollout of the Pfizer and Moderna vaccines would be expected to assist in the gradual economic recovery from the COVID pandemic, the Federal Reserve emphasized last week that approximately six months of both monetary and fiscal stimulus are needed to bridge the gap between now and adequate vaccine distribution to support herd immunity by 2H21. As such, Congress over the weekend finally reached an agreement on an approximate $900 billion fiscal stimulus package, and after passing through both houses Monday, President Trump is expected to sign it into law today.

The package includes aid for many Americans including $300 per week in federal unemployment benefit enhancements and $600 individual stimulus checks, as well as support for small businesses, healthcare, transit, schools, and vaccine rollout. In this paper, we will begin with an assessment of the stimulus packages to date, followed by highlights on key aid to individuals, businesses, and governments in this latest package. Next, we will discuss an interpretation and analysis of this relief deal in the context of key financial market and economic indicators. Finally, we will conclude with a look to next steps.

Read > Additional Relief Stimulus to Bridge Gap as Vaccine Distribution is Underway

 

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 TIPS Be an Effective Inflation Hedge for Portfolios?

With the COVID vaccine’s worldwide distribution and adoption starting last week, many investors are aiming to project an inflation outlook driven by the return of furloughed workers and impending economic recovery and adjust portfolios with inflation protection in mind.

In this newsletter, we examine how key asset classes in institutional portfolios behave in rising or declining inflation environments, and ultimately determine the best asset classes that serve as inflation hedges while also providing strong total return and efficiency ratios. In particular, we investigate if TIPS (Treasury Inflation-Protected Securities) offer superior inflation protection compared to other common portfolio constituents.

Read > Can TIPS Be an Effective Inflation Hedge for Portfolios?

 

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.

Cash Balance Product Alternatives & Recommendations in the Current Ultra-Low Yield Environment

With short-term interest rates seemingly stuck at unprecedented low levels, a key challenge for investors today is how best to obtain compelling yields for cash balances as part of an overall portfolio while maintaining safety and principal protection.

In this newsletter, we examine the current ultra-low yield environment and what options investors may consider in their approach to structuring an optimal cash allocation.

Read > Cash Balance Product Alternatives & Recommendations in the
Current Ultra-Low Yield Environment

 

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.

Why Will Yields Remain Low After COVID and What Can Investors Do About It?

As we head into the 2020 year-end holiday season on the heels of positive vaccine news and an all but formally concluded presidential election, investors are turning their attention to what the state of the world economy and financial markets might look like as we potentially return to normal in 2021 and beyond. One key question being asked is where interest rates and bond yields might be headed.

In this newsletter, we explore why we are in such an ultra-low yield environment as well as what key structural transformations need to take place for rates to meaningfully rise to higher levels. Last, we devise a recommended plan of action for how asset owners can address this persistent ultra-low yield environment — even after a COVID recovery — in order to achieve return or volatility targets.

Read > Why Will Yields Remain Low After COVID and What Can Investors Do
About It?

 

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.

Defined Contribution Plan Legislative Update – 4Q 2020

While legislators have been focused on negotiating the next round of stimulus and dealing with the implications of the recent election cycle, the U.S. Department of Labor (DOL), as the primary regulator of the Employee Retirement Income Security Act (ERISA), has been fairly active with issuing proposed changes and final rules that may impact many of our defined contribution plan clients in the past several months.

This legislative update covers recent communications regarding private investments in defined contribution plans, proxy voting guidelines, ESG considerations (an update to an earlier Proposed Rule), and 2021 contribution limits.

Read > 4Q 2020 DC Legislative Update

 

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.

 

What Does the Biden Win Mean for Financial Markets?

On Saturday, November 7th, Joe Biden was declared the winner of the presidential election and will become the 46th president of the United States in January. Markets were surprisingly positive last week despite the uncertainty around results as multiple states were too close to call until all the votes had been tallied. While there is still pending litigation in certain states, it seems highly unlikely that these actions will reverse the election result. Thus, market participants have turned their attention to what the market can expect from a Biden-led White House coupled with a split Congress, while the coronavirus pandemic marches on.

In this newsletter, we tackle this question for each of the “traditional” asset classes: Fixed Income, U.S. Equities, and Non-U.S. Equities. The impact on alternative asset classes such as hedge funds, real assets, and private equity are more nuanced and will be covered in our 2021 market preview to be released in January.

Read > What Does the Biden Win Mean for Financial Markets?

 

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.

Dave Smith Speaking at Institutional Investor Virtual Roundtable 5/21

On Thursday, May 21st, Dave Smith, CFA will be speaking at a virtual roundtable hosted by Institutional Investor’s Institutional & Alternatives Investor Institutes.

Dave will be moderating a session focused on Endowments & Foundations: “For E&Fs, the Pandemic’s Effects Reach Far Beyond Portfolio Losses. What Does the Rest of 2020 Look Like?” As many endowments and foundations are facing operational variables on top of challenges in portfolio management, the panel will explore how E&Fs are thinking about the long term in the wake of coronavirus and how E&F investors might secure liquidity from a largely illiquid portfolio.

The Roundtable will bring together health care funds, endowments and foundations, public pension plans, and insurance investors to discuss how asset allocators and investment consultants are dealing with the disruption caused by COVID-19.

For more information, please visit the Institutional Investor Institute website.

Marquette Awarded Greenwich Quality Leader in Overall U.S. Investment Consulting

CHICAGO, April 29, 2020 – Marquette Associates, Inc. has been designated as a 2019 Greenwich Quality Leader within the large investment consultant category.

“More than ever, we remain dedicated to the highest caliber of client service and strive to be a trusted advisor to our clients for the long-term,” said Brian Wrubel, Marquette’s chief executive officer and president. “As an independent investment consultant, client interests are at the heart of everything we do – we are grateful for their recognition and will continue to make every effort to exceed their expectations in the years ahead.”

About the 2019 Greenwich Award
In the second half of 2019, Greenwich Associates conducted interviews with 1,100 senior professionals across nearly 900 institutional investors in the United States. Study participants were asked to provide quantitative and qualitative evaluations of their investment consultants, which were used by Greenwich Associates to calculate a score on the Greenwich Quality Index for each consultant named. Consultants with scores that top those awarded to competitors are named Greenwich Quality Leaders.
For more information about Greenwich Quality Leaders in U.S. Investment Consulting, please visit the Greenwich Associates website.

About Marquette Associates
Marquette Associates is a Chicago-based, independent investment consulting firm that guides investment programs with a focused client service approach and careful research. Marquette has served a single mission since 1986 – enable institutions to be more effective investment stewards. Marquette places client fiduciary duties first through complete independence and 100% employee ownership. The firm currently serves more than 415 clients with over $238 billion in assets – from public funds, unions, and corporations to endowments, foundations, and other non-profits.
For more information, please contact Brian M. Wrubel at 312.527.5500 or bwrubel@marquetteassociates.com.

 

DISCLOSURE:

The Greenwich Quality Leaders Awards are conducted by Greenwich Associates, a third-party firm that has no affiliation with Marquette Associates, Inc. (“Marquette”), and are based on quality ratings provided by clients of investment consultants. Between July and October 2019, Greenwich Associates conducted interviews with 1,100 senior professionals at 896 of the largest tax-exempt funds, 11 of whom reported retaining Marquette in the United States. These organizations included corporate and union funds, public funds, endowments and foundations, insurance general accounts, and healthcare organizations, with either pension or investment pool assets greater than $150 million. Consultants like Marquette receive the study results in exchange for providing Greenwich Associates with evaluations of investment managers. Marquette did not pay Greenwich Associates any compensation for inclusion in this study. Study participants were asked to provide quantitative and qualitative evaluations of their investment consulting providers. Based on those responses, Greenwich Associates calculates a score on the Greenwich Quality IndexSM for each consultant named. Consultants with scores that top those awarded to competitors are named Greenwich Quality Leaders. Three consulting firms, including Marquette, were recognized as Quality Leaders for large investment consultants in the U.S. The rankings presented are not necessarily representative of any single client’s experience, but rather represent the collective views of Marquette’s sampled clients. Rankings do not represent an endorsement of Marquette. Past performance is no guarantee of future results. For more information on Greenwich Associates and the study, please visit www.greenwich.com.