Asset management and investment banking firms across the globe continue to develop a variety of liability driven investing (LDI)–focused products and solutions for the pension plan community; however, there remains broad confusion over the meaning of LDI. While most of these products and customized solutions attempt to hedge liability-related interest rate and inflation risks, such…
While the long-term case for Asia ex Japan remains compelling and equity valuations are still reasonable, in the near term we continue to see greater risks on the downside. We view Japanese equities as inexpensive and Australian equities as reasonably priced, albeit more expensive than developed markets equities as a whole.
This report provides commentary and exhibits based on a survey of our U.S.-based endowment clients on aspects of operations management, with a focus on six categories: finance office staffing; liquidity; debt; financial reporting and accounting; performance reporting; and regulatory, tax, and legal matters.
Global equity markets generally posted sizable losses in 2011 – with the notable exception of the United States – as the deepening European debt crisis dragged returns down worldwide, while major developed bond markets (e.g., the United States, the United Kingdom, and Germany) posted blockbuster returns.
European equity valuations are reasonable from a historical perspective—pessimism about sovereign finances and a slow recovery may be fully priced in.
This paper highlights key provisions of the major U.S. financial act signed into law in July 2010, focusing on issues related to alternative investments and managers. With more than 60 mandated federal studies due over the next several years and at least 200 new regulations that have yet to be written, the final regulatory landscape…
Given that the global economic outlook is highly uncertain and valuations are not particularly cheap, we once again find ourselves in the role of urging institutions to develop spending contingency plans now, to prepare for the day when their spending policy may dictate cuts, as opposed to being forced to make such decisions hastily, under…
While European equity valuations are reasonable from a historical perspective, market pricing doesn’t provide much cover for risks stemming from sovereign finances and the halting economic recovery.
Even as we focus on the investment challenges of the new decade, it is useful to consider the past ten years. This report briefly covers the performance of various asset classes in the 2000s before delving into lessons learned and observations relevant in the years ahead.
While there are some good reasons that demand for fixed income assets has increased, the subsequent price appreciation has made compelling investments harder to find. However, while we view sovereign bonds from many developed countries as very overvalued, our outlook on credit is more nuanced.