Services Tags: OCIO

BREXIT: The Results and What’s Next

June 2016

On June 23rd, the United Kingdom (UK) shocked markets with its vote to leave the European Union (EU). The Remain vote lost to the Leave vote, 48.1% to 51.9%, with a strong turnout throughout the UK. Younger voters sided with the Remain camp by a wide margin, while older voters supported the Leave camp (Exhibit 2). In the weeks leading up to the referendum, global equity/credit markets and the British pound experienced positive price movement in anticipation of a Remain verdict. Using polling information and odds makers as indicators, investors were caught off guard at the Brexit result, leading to dramatic losses for risk assets on June 24th.

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Is the High Yield Market Expecting a Rise in Defaults?

May 2016

Given the depressed oil prices earlier in the year coupled with the recent credit rally, we have gotten many questions from clients about the future direction of default rates, particularly for high yield bonds. In early February, the question was about how high default rates would rise as a result of low oil prices and their subsequent impact on high yield issuers, particularly those in the energy sector. Now, as credit has rallied, investors are wondering if expected default rates are too pessimistic in light of the rally and rise in oil prices. This newsletter contemplates the current implied default rate for high yield bonds and how successfully it has predicted actual default rates, all in an effort to further examine the state of the high yield market. Ultimately, the goal is to provide our clients with guidance on how current conditions in the market could impact their portfolios over both short and long term investment horizons.

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Is Now the Time to Buy Emerging Market Equities?

March 2016

Over the last five years, emerging market (“EM”) equities have struggled to keep up with their developed market (“DM”) counterparts. Losses were extended into 2015, when this asset class lost 14.9%. Given the poor performance, it is not surprising that emerging market equities currently offer the most attractive valuations. The S&P 500 and MSCI EAFE trade at roughly 7–10% above their ten-year averages while the MSCI EM index trades 17% below. Given these valuations, when should investors expect a pick-up in performance?

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Secure Choice: The Next Chapter in the U.S. Defined Contribution Story

February 2016

In this latest Marquette Defined Contribution paper, we build on the similar themes of governance and evolving best practices by emphasizing that positive challenges lie ahead for trusted stewards of defined contribution plan assets; particularly, as defined contribution assets continue to grow, new types of DC plans emerge, best practices evolve, and an increasingly diverse population is gaining access to defined contribution plans. Consequently, those of us that are entrusted as fiduciaries have an opportunity to place segments of our country’s workforce on a steadier path towards retirement readiness.

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2016 Market Preview

January 2016

Similar to previous years, we offer our annual market preview newsletter. Each year presents new challenges to our clients, and 2016 is off to a volatile start with equity markets down significantly, oil dropping below $30, the Fed poised to further increase interest rates, and fears of a China slowdown rippling through the markets. However, other headlines will emerge as the year goes on, and it is critical to understand how asset classes will react to each new development and what such reactions will mean to investors. The following articles contain insightful analysis and key themes to monitor over the coming year, themes which will underlie the actual performance of the asset classes covered.

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Responsible Investing for Social Impact

Impact investing is one of the fastest growing spaces in the investment marketplace — offering market-rate returns alongside social and environmental benefits.

Please join us for a discussion on creating social impact through responsible investing with members of our impact investing group. Key topics from our recently published newsletter will be covered.

Attendees will be briefed on:

  • The history of socially responsible investing (SRI)
  • Different approaches to responsible investing
  • Impact investing program implementation
  • First steps for new impact investors

A question and answer session will follow.

Live Webinar – Tuesday, August 18, 2015 – 1:00-1:45 PM CT

Please contact us for access to this video.

Creating Social Impact Through Responsible Investing

August 2015 Investment Perspectives

A growing population of socially conscious investors has energized socially responsible investment (SRI) strategies in the past decade. The Forum for Sustainable and Responsible Investment defines SRI as the process of integrating personal values and societal concerns into investment decision making. SRI has increased in the U.S. from $639 million in 1995 to $6.6 trillion in 2014. These assets account for roughly 17% of total dollars under management in the U.S.

This newsletter outlines a brief history of SRI, approaches to implementing an SRI program including positive and negative screening and shareholder activism; impact investing; example products and solutions in equities, fixed income, and real estate; investor concerns around performance and fiduciary liability, and considerations for implementing a sustainable investing program.

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Defined Contribution Plan Stewardship: History & Opportunities

Defined contribution (DC) plans have grown to become the most commonly used employer-sponsored retirement savings vehicle in the U.S. — and fiduciary duty guidance is rapidly evolving as well. Please join us for a discussion on defined contribution plan stewardship with Greg Leonberger, director of research, and Kweku Obed, senior investment consultant. Key topics from our popular DC white paper, Defined Contribution Plans: A Look at the Past, Present & Future, will be covered.

Attendees will be briefed on:

  • The growth of defined contribution plans
  • Best practices evolution & the PPA as catalyst
  • Behavioral finance & the fiduciary duty of investment choice simplification
  • The robust governance & monitoring imperative

A question and answer session will follow.

Live Webinar – Tuesday, March 31, 2015 – 1:00-1:45 PM CT

Please contact us for access to this video. 

2015 Market Preview Briefing

A briefing on our 2015 Market Preview report, covering the overall U.S. economy, fixed income, U.S./non-U.S. equity, hedge funds, private equity, real estate and infrastructure.

Live Webinar – Thursday, January 15, 2015 – 1:00-1:45 PM CT

Please join Marquette’s asset class analysts for a live webinar briefing on 2015 capital market expectations. Potential market drivers and general outlooks will be discussed for the overall U.S. economy, fixed income, U.S./non-U.S. equity, hedge funds, private equity, real estate and infrastructure.

Live webinar attendees will be able to submit questions to the presenters and vote in audience polls during the event. Questions will be answered during the final 15 minutes of the webinar, as time allows.

If you are unable to attend the webinar live, you can also view it afterward on demand. Registrants will automatically receive a follow-up email shortly after the end of the webinar to notify them of webinar recording availability.

Please contact us for access to this video.