Why Did I Diversify?
While simple 100% U.S. equity and stock/bond portfolios have outperformed highly diversified portfolios recently, highly diversified portfolios have delivered consistently superior returns over decades.
Research Publications Archive
Securities Lending: What a Difference Five Years Makes
Although the rate of increase has remained relatively constant over the past six years, total student charges, which include tuition, fees, and room & board charges, continue to rise. Our annual compendium of student charges includes high-to-low rankings, annual percentage increases, a comparison of rates of increase to inflation, and an appendix providing a 20-year…
Fiscal Year 2013 in Review
Equities surged ahead during the fiscal year, while commodity-related assets and high-quality bonds struggled.
U.K. Historical Capital Market Returns: 1900-2012
An extensive examination of long-term trends and returns in U.K. equities, gilts, and Treasury bills.
Growth Equity Is All Grown Up
Growth equity has matured and evolved into a distinct asset class with different characteristics from both venture capital and private equity, and may represent an attractive alternative for certain investors. For those old enough to remember the commercials, U.S. growth equity could perhaps be called the Reese’s Peanut Butter Cup of the private investment world….
Positioning for an Eventual Return to Temperance
A mid-year update on our views, focusing on the macroeconomic factors that impact short-term market moves and the valuations that influence long-run results.
Japan: Still Awaiting Confirmation on Fundamentals
Despite the recent sell-off, Japanese equities are up considerably since last October given the promise of Abenomics; however, we remain tactically neutral given valuations and significant structural headwinds.
Mean-Variance Assumptions: An Introduction
This paper describes our approach to developing input assumptions for use in mean-variance analysis. Appendices cover the weaknesses of other approaches, as well as taxable considerations.
Comparative Debt Issuance Practices
This survey-based report provides information on the general characteristics of clients’ outstanding debt, including tax status, interest rate type, sources used for debt service, credit enhancements, and plans for refinancing or new issuance.
Pension De-Risking in a Low-Rate Environment—A Better Solution
After assessing the current environment of extremely low interest rates and its implications for defined benefit plans, we articulate our view on how to develop a flexible de-risking framework that takes into account today’s low yields. We contrast this to the more formulaic and mechanical “glide path” concept advocated by many pension industry participants. Defined…