No, we do not believe investors should add a new overweight to public energy at this time. Political machinations and virus-induced uncertainty are weighing on oil prices at present, and it seems unlikely that both of these obstacles will soon be lifted. Instead, investors should closely monitor positioning to ensure their current level of energy exposure is intentional.
In 2019, 54% of active global managers underperformed the MSCI World Index (gross of fees), with the median manager underperforming by 44 basis points. This a companion piece to the US chart book already published.
Yields on ten-year Treasuries dropped below 50 basis points (bps) today for the first time in history as COVID-19 fears spread. While we cannot rule out a recession, given the uncertainties associated with the virus and its impact on economic activity, we believe today’s low yields are less about long-term growth forecasts and more about expectations of further Federal Reserve easing, risk aversion, and liquidity preferences.
The US Federal Reserve cut its policy rate by 50 basis points today, highlighting the serious challenges facing the global economy. Still, we don’t believe investors should cut risk. Very few have an informational edge regarding COVID-19’s market impact, and investors could be left underexposed when and if markets rebound.
For the sixth straight year, the majority of active mid- to large-cap managers underperformed in 2019, with 62.0% lagging the benchmark (gross of fees). This chart book is our annual summary of the absolute and relative performance of managers that report to our database.
This report summarizes returns, investment policy, asset allocation, and related trends for 319 endowed institutions. Included are exhibits on asset class returns, performance attribution, risk analytics, policy portfolio benchmarking, and uncalled capital commitments. The analysis is broken down by size of assets under management and by institution type. The report also contains sections on investment…
Global equities sold off sharply this week as cases of COVID-19 spread rapidly outside of China (particularly in Korea, Italy, and the Middle East). While the spike in volatility has been abrupt, the current market sell-off is arguably a needed correction.
Yes, and they have been for some time. Progress has been slow, but current market and regulatory conditions could enable a breakthrough. The impact will be felt primarily in the upper registers of the private equity arena. I’m viewing Vanguard’s recent private equity–related announcement as the first of a two-step process. The first step is…
Healthcare systems can benefit greatly by maximizing equity orientation and illiquidity while prudently managing risk. But a typical healthcare system may have investment assets in multiple accounts, due to mergers & acquisitions, capital projects, and fundraising, as well as operational and pension benefit growth. Investments can be curated—identified, categorized, and clustered—for optimal efficiency and cost savings. Similarly, defined benefit pension plans can be restructured to better manage pension risk and administration. This paper discusses strategies to simplify and streamline investment structures to make complexity more manageable for investment and financial executives.
Insights into key metrics for private US real estate managers and how they have evolved over time.