While many options exist as a result of the Special Financial Assistance (SFA) program for underfunded multiemployer pension plans, a plan-specific, holistic approach that combines multiple investment strategies is most likely to generate optimal outcomes. This paper provides a guide to plan sponsors as they seek to make the most effective use of their SFA program capital.
A healthcare system’s investment structure is intentionally aligned to match varying enterprise needs over the short, intermediate, and long term. Most have gravitated toward the use of tiers—pools of capital delineated as available immediately (operating cash), within the next few years (short-duration bonds), or strategically over time (long-term investment pools). However, the need for capital flexibility and liquidity has grown as the demands of providing care have become more complex. Fortunately, higher interest rates have made the return profile of highly liquid, short-duration tiers more attractive. As a result, we expect many hospitals will benefit from allocating any new funds that come available to short-term tiers, given the yields available in short rates and superior liquidity.
No, it’s not over, but the worst of it is past us. After the liquid token market’s remarkable January, some called an early spring.
In fiscal year 2022, endowments faced a challenging market environment one year after they had seen the best investment returns in decades. Our annual report based on a survey administered to our endowment clients summarizes returns, asset allocation, and other investment-related data for 316 institutions for the fiscal year ended June 30, 2022. We also review peer data on topics such as investment policy, portfolio manager structures, spending, and investment office staffing and governance.
Climate tech has gained popularity among investors in recent years, but those familiar with the space recognize it as an evolution from clean tech solutions developed in the 2000s. In this paper, we explore the development of this growing investment theme, look at its evolution into a financially compelling investment opportunity, and discuss how investors can best take advantage of this opportunity.
Southeast Asia, also known as ASEAN (The Association of Southeast Asian Nations), was a relative safe haven for investors in 2022. In this paper, we analyse the factors that have supported ASEAN equities, including the country/sector composition of the ASEAN market, the earnings outlook for the region, and the currency basket. We also show that the ASEAN market looks different today versus 2013, when the region experienced headwinds due to elevated valuations coupled with a collapse in commodity prices and the Federal Reserve’s tapering cycle.
Calendar year 2022 witnessed multi-decade record inflation and central banks responded with rapidly tightening monetary policy. Rising rates saw the correlation between bonds and equities turn positive, contributing to large declines across most asset classes. Funds flows diverted away from growth and momentum strategies, and yield curves flattened with the ten-year/two-year yield curve becoming inverted in most developed markets, signaling economic uncertainty ahead.
Yes, we expect US small-cap equities will outperform US large-cap equities this year. Our view is based on the belief that the large valuation spread that exists will likely narrow and that large company earnings are likely more at risk of missing expectations than small company earnings.
Investors should use the entire investment toolbox to build diversified exposure to climate solutions.
Just one year after the best investment returns endowments had seen in decades, fiscal year 2022 brought about the most challenging market environment since the Global Financial Crisis of the late 2000s. Our annual survey-based report of 158 US colleges and universities includes commentary and analysis of investment performance, asset allocation, and related trends. We also review peer data on topics such as investment policy, portfolio manager structures, spending, and investment office staffing and governance.