Services Tags: Investment Consulting

Trump Bypasses Congress with Coronavirus Relief Executive Actions

This past Saturday, August 8th, President Trump issued several executive actions that serve as an emergency COVID-19 aid package. The package includes three memoranda that provide assistance for the jobless, a payroll tax deferral, and an extension of the student loan payment moratorium and an executive order that provides rental and mortgage assistance to mitigate evictions and foreclosures. The executive actions came about because of a stalled Congress as negotiations over the last two weeks fell apart last Friday, August 7th, between the Senate Republicans with their $1 trillion proposal and the House Democrats with their $3.5 trillion proposal.

This newsletter puts these executive actions into context with earlier federal stimulus packages, including an overview of how each action will be implemented and expected economic and financial impacts.

Read > Trump Bypasses Congress with Coronavirus Relief Executive Actions

 

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.

Aimee O’Connor Quoted on RIA Services

On May 14, Aimee O’Connor, CFP®, was quoted in a FundFire article on the growth of Registered Investment Advisor (RIA) service offerings in the investment consulting industry.

In the article, Consultants’ Latest Target? RIAs in Need of Investment Help, Aimee commented on the area as being a competitive market and added that, “The more consultants try to swim in the private client, high-net-worth area, the easier it is to leverage what they already have internally. It’s a natural extension.” Marquette began servicing RIA clients in 2017; for more information, please reach out to Aimee or by using our contact page.

To read the article, visit the Fund Fire website (subscription required).

2020 Halftime Market Insights Video

This video features an in-depth analysis of the second quarter’s performance and coincides with our 2Q Asset Allocation Update newsletter, reviewing risks and opportunities heading into the second half of the year.

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.

Kweku Obed Featured on eVestment Podcast

On May 12, managing director Kweku Obed, CFA, CAIA was featured on eVestment’s The Source podcast.

Kweku spoke about Marquette’s manager search process, including our four-phased approach to manager evaluation and how Marquette sources and uses both quantitative and qualitative data to make recommendations for customized client portfolios. Kweku also discussed Marquette’s philosophy toward various investing strategies for clients such as active vs. passive management, the role of alternatives and private equity in portfolios, and ESG/SRI factors.

To listen to the podcast, please visit the eVestment website.

 

Second Quarter Review of Asset Allocation: Risks and Opportunities

The second quarter of 2020 proved to be as eventful as the first, with slow economic results being largely ignored as markets rallied. GDP growth for the quarter is expected to come in at -35.5% YoY, though 3Q GDP projections indicate a significant rebound is expected as the country begins to reopen to “the new normal.” In addition, the unemployment rate came in at 11.1%, down from the April peak above 14%. Below are some highlights from the quarter:

  • Countries around the globe began reopening businesses amid fears of a second wave of COVID-19 infections.
  • Daily infections reached a new high in the United States at more than 50,000 per day, causing some states to roll back their reopening plans.
  • Weekly initial claims for unemployment insurance have continued to trend downwards.
  • Additional fiscal and monetary stimulus are expected in the second half of the year, bolstering markets.

COVID-19 has proven to be a potentially long-lasting concern as it remains to be seen whether we are in for a V-shaped or U-shaped recovery. Economic data is improving slowly, though markets have seemed to shrug off some of the negative news as the S&P 500 moved into positive territory over the one-year period. Though it may have fallen into the background due to COVID-19, 2020 is a presidential election year. Uncertainty surrounding the election will undoubtedly have an impact on forward-looking expectations. In this newsletter, we analyze what all of this means for each asset class.

Read > Second 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.

Financial Factors in Selecting Plan Investments Proposed Rule

On June 23rd, 2020, the U.S. Department of Labor released a proposal to amend certain fiduciary regulation around the consideration of economically targeted investments, or those that incorporate environmental, social, and governance factors.

The purpose of this legislative update is to provide some background on ESG integration and the subsequent DOL guidance on these issues as well as a summary of the Proposed Rule and its impact on ERISA plans.

Read > Financial Factors in Selecting Plan Investments Legislative Update

For additional Marquette coverage on sustainable investing, reference our recent newsletter, Sustainable Investing in a Post-COVID World, and white paper, The Future of Investing: Sustainability and ESG Integration.

 

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.

Target Date Funds Education Featured in Benefits Magazine

Marquette research was featured in the December 2019 edition of Benefits Magazine. The article, To or Through: Evaluating TDF Glide Paths, explores different target date fund (TDF) glide paths and how they may affect retirement savings outcomes.

While there is much debate about whether “to” or “through” glide paths better serve plan participants, the multitude of offerings allows for a best-fit solution that can address the specific characteristics and needs of the participant group. TDFs should be evaluated according to the benefits and risk exposures of the specific fund as well as the characteristics of the group, and as the steepness and length of derisking periods have large effects on participant outcomes, glide paths are a critical component of the evaluation process.

For more of Marquette’s TDF coverage, read our white paper, Target Date Funds: Preparing Participants for Retirement.

Benefits Magazine, the monthly publication of the International Foundation of Employee Benefit Plans, covers benefit issues affecting multiemployer, single employer and public employee plan representatives.

Download PDF> To or Through: Evaluating TDF Glide Paths

 

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.

 

 

Lee Martin and Kit McCarty Presenting at PSACC Conference 11/14

On Thursday, November 14, Lee H. Martin, Ph. D. and Kit McCarty, CEBS, REBC, AIF®, C(k)P® will be presenting at the Pennsylvania State Association of County Controllers Conference in Lancaster, Pennsylvania.

Lee and Kit will be participating in a roundtable discussion on 457(b) Defined Contribution Plans. The panel will cover PA County 457(b) plans specifically, including their history, benchmarking, and the RFP process and fiduciary oversight. The panel will also examine two county case studies in regards to 457(b) plan transition and engaging and educating 457(b) plan participants.

The Pennsylvania State Association of County Controllers Conference offers a variety of educational opportunities as well as a chance for Controllers, Deputies, staff, and Solicitors to share fellowship.

Don’t Mind the Gap

On the surface it looks disjointed. We are in the midst of what is likely the worst recession since the Great Depression, but the stock market has rallied back in a matter of weeks and currently sits just 10% off all-time highs. Treasury yields appear to be pricing in an extended period of softness, and high yield spreads have only started to show signs of recovery. While the future is always an unknown, it feels as if we are facing a new level of uncertainty with many more moving parts.

In this newsletter, we explore equity market dynamics to help reconcile the apparent gap between the recent good news from equity markets and overwhelmingly negative news from the economy and bond markets.

Read > Don’t Mind the Gap

 

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.