Services Tags: Investment Consulting

Kweku Obed Speaking at NCPERS Chief Officers Summit 6/13

On Thursday, June 13, Kweku Obed, CFA, CAIA will be speaking at the NCPERS 2019 Chief Officers Summit: Where Leaders Engage in Chicago.

The Chief Officers Summit is designed to prepare CEOs and CIOs to drive their organizations forward in the face of constantly evolving opportunities and challenges. Kweku will be participating in a “Pros & Cons of Portfolio Complexity” panel with several other consulting and asset management professionals and plan sponsors. Additionally, on June 14, Kweku will be a panelist on the session entitled, “Getting More Value from Your Investment Consultants.”

Founded in 1941, the National Conference on Public Employee Retirement Systems (NCPERS) is the principal trade association working to promote and protect pensions by focusing on advocacy, research, and education for the benefit of public sector pension stakeholders.

For additional information, please refer to the NCPERS event page.

April 2nd Update: A Quarter That Will Go Down in History

With March officially in the books, the following is a brief summary of what has transpired in the capital markets since our update early last week. As expected, the coronavirus has exploded across the U.S. and continued its spread across Europe as well. At the time of writing, the number of cases is approaching 1 million worldwide and has exceeded 200,000 here in the United States. Stocks finished their worst quarter ever on Tuesday and volatility continues to haunt the markets. While the worst may still not yet be behind us, we hope that the growing number of shelter in place edicts and more consistent social distancing may help to stem the coronavirus outbreak across the world. Please note that all return data in the following discussion utilizes the quarter end date of March 31st, 2020.

Read > April 2nd Update: A Quarter That Will Go Down in History

 

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.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act

In the early hours of March 25th, the Senate and the Trump administration reached a deal on the $2 trillion stimulus package aimed at cushioning the fall for U.S. businesses and consumers in the wake of the coronavirus pandemic. The bill was approved by the Senate late on March 25th, passed through the House on March 27th, and was signed by Trump the afternoon of March 27th. The size of the package is over 9% of the U.S. GDP and is greater than the three major relief packages passed during the 2008 crisis combined.

This legislative update summarizes the key elements of the CARES Act and concludes with an assessment of the expected impact of this stimulus package.

Read > The Coronavirus Aid, Relief, and Economic Security (CARES) Act

 

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.

Following China’s Lead?

Year-to-date, China has suffered the least among global equity markets, down 18%. In comparison, the U.S. and Eurozone have produced losses greater than 30%. Why have Chinese equities outperformed? Does that performance provide us with any insights into future expected returns? In this newsletter, we will examine several data points to provide some possible answers to these questions, including a look at coronavirus case counts, the latest PMI numbers, and monetary and fiscal measures.

Read > Following China’s Lead?

As always, please reach out to your consultant or our research team for more details about any of the information in this newsletter. For more Marquette coverage on COVID-19, please view the Coronavirus Updates topic on our Research page.

 

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.

An Analysis of Bear Markets and Recoveries

After reaching a high of 3,386 on February 19th, the longest bull market in history officially made a record fall into bear market territory in the span of just 16 trading days and only a few days after its 11th anniversary. The S&P 500 has now been in a bear market, defined as a decline of 20% or more, for nearly a week. So when should we expect the market to hit bottom? And when will this decline end?

This newsletter uses historical data to provide guidance and explanation of bear markets and their subsequent recoveries, including a detailed look at S&P 500 performance, small-cap performance, volatility, and valuations. While no one knows the specifics of how the future will play out, the data we’ve compiled offers perspective on what the typical bear market correction is, how far we are from that level, worst case scenarios, and possible opportunities to buy equities at attractive prices.

Read > An Analysis of Bear Markets and Recoveries

 

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.

Back to Square One: Fed Cuts Rates to Zero, Market Responds

In response to the Fed’s emergency rate cut of 100 basis points over the weekend that brought the target fed funds rate to 0.00%–0.25%, the S&P 500 plunged 12% on Monday (March 16th). This is likely a sign that the markets believe that monetary stimulus is not enough to stave off a coronavirus-triggered recession.

The following newsletter includes Marquette’s assessment of the situation as well as perspectives on liquidity, fiscal stimulus, positioning, and expectations for the economy and financial markets in the coming months.

Read > Back to Square One: Fed Cuts Rates to Zero, Market Responds

 

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.

The Oil Price War and Coronavirus: What Does it Mean for Bond Returns?

This weekend’s clash between Saudi Arabia and Russia at the OPEC meeting launched an oil price war that saw prices plummet over 20% with oil now trading at approximately $35 per barrel. This is salt on the wound for the global markets as coronavirus cases roughly tripled last week in the U.S., Europe, and the rest of Asia outside of China. Somewhat predictably, the S&P 500 suffered its biggest drop yesterday (March 9th) since 2008, dropping 7.6%; this was the 19th largest drop in its history.

This newsletter updates investors on yesterday’s market turbulence and in particular provides a projected outlook for core bonds’ expected returns in 2020. While the path forward from yesterday is unknown, the analysis included should hopefully provide investors some guidance on potential paths and returns for the remainder of the year.

Read > The Oil Price War and Coronavirus: What Does it Mean for Bond Returns?

 

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.

March 2: Coronavirus Update and Portfolio Guidance

Last week was a painful one for the equity markets as fears about the coronavirus drove investors out of stocks and markets into correction territory. The following newsletter summarizes last week’s developments and provides specific commentary on what to watch for across the major asset classes that constitute investor portfolios.

Read > March 2: Coronavirus Update and Portfolio Guidance

As always, please reach out to your consultant or our research team for more details about any of the information presented in this update. For more Marquette coverage on coronavirus, reference our previous newsletter (January 28) and Chart of the Week posts (February 13, February 21, February 26).

 

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.

The Future of Investing: Sustainability and ESG Integration

With 2020 underway, sustainable investing continues to be a trending topic, although the concept of incorporating environmental, social, and governance (ESG) metrics into an investment thesis is not new. ESG integration is returns-focused and incorporates long-term sustainability factors into the investment research process to identify companies with higher return potential.

In this white paper, we examine the current ESG landscape, including the various movements that have preceded ESG integration, recent strides by American corporations, fiduciary guidance, and the growing response by investment managers to meet investor demand, especially in reporting and performance measurement. We also present our approach to incorporating ESG into our manager evaluation process and the best practices our team looks for when performing due diligence for ESG-mandated strategies.

Read > 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.

Eric Gaylord Speaking at Investment Management Institute DC Literacy Summit 2/13

On Wednesday, February 13, Eric Gaylord, CFA, will be speaking at Investment Management Institute’s first DC Literacy Summit in Stamford, Connecticut.

Eric will join two other panelists in a discussion entitled, “How Should Employee Education Work?” reviewing the role, process, and practical use of education for defined contribution plan participants.

The DC Literacy Summit brings together institutional investors, consultants, and asset managers to exchange ideas and solutions for program structure and development, particularly with new participants and younger employees. IMI is a leading education and research organization servicing institutional investors and wealthy families internationally.

For more information, please visit the event web page.