Japan – The Long Road to Recovery
We continue to be neutral on Japan despite low valuations, as the catalyst for outperformance remains elusive.
Research Publications Archive
Emerging Markets Equities: Balancing Fire and Ice
While emerging markets equities remain attractive in the long term, the short-term risks posed by the European debt crisis and the potential for a global recession to pressure earnings growth merit caution. We recommend remaining at policy target allocations and considering building overweights on further weakness.
European Equities: Not Expensive But Not Compelling
European equity valuations are not expensive, but political risks justify a discount and the lack of easy fixes to Europe’s sovereign debt crisis may make volatility a recurring feature of the market.
The Lowdown on Low Vol
While the theory behind low-volatility equity strategies is sound, funds seeking to provide equity-like returns with lowered volatility are neither new nor unique. Further, investors should tread cautiously given the mushrooming number of entrants in the field and the diversity of approaches.
Master Limited Partnerships
This report provides an in-depth overview of energy master limited partnerships. This evolving asset class has a number of unique features, including market niche and favorable tax treatment for taxable investors. We review the development of the asset class, investment characteristics from the perspective of both taxable and nonprofit investors, current valuations, and industry growth.
Can U.S. Corporate Profit Margins Continue to Defy Gravity?
Equity investors are right to be focused on corporate earnings, given that a lackluster recovery and slowing global growth may weigh on sales. However, profit margins may be of lesser concern, due to index mechanics and the limited correlation between margins and returns. S&P 500 companies have enjoyed a stunning rebound in profits since the…
European Update: Kicking an Ever Bigger Can
While recent efforts by European authorities to expand rescue packages for peripheral countries are a step in the right direction, market volatility is likely to remain elevated until more comprehensive solutions are put on the table.
Failure to Raise the U.S. Debt Ceiling: Implications for Investors
This short piece communicates our position on the investment implications of the standoff on the US debt ceiling.
Fiscal Year 2011 in Review
Summary highlights for various asset classes for the fiscal year ended June 30, 2011.
An Overview of Private Equity Investing in the Mining Sector
This primer discusses the basics of investing in the global mining sector and identifies the key drivers of value and the potential risks associated with investing in the sector.