Research Publications Archive

April 8, 2020

Liability Hedging in Response to Pandemic Crisis

Market Implications of COVID-19 | Pension Series | Download

The notion that interest rates are dynamic in nature and notoriously difficult to predict has been demonstrated in spades by the uptick in market volatility during the COVID-19 pandemic. The economic impact from the virus has been swift, creating a dichotomy between “risk-free” Treasury interest rates and corporate spreads. In this paper, we outline how hedging programs may need to re-align their strategies given the current circumstances while continuing to lean on the basics.

April 8, 2020

Balancing the Financial Equation: Your Closest Supporters Have Never Been More Important

Governance and Management, Investment Planning, Market Implications of COVID-19 | Endowment and Foundation Series | Download

For non-profit institutions, the disruptions caused by the COVID-19 virus, and the speed by which these disruptions have materialized, create a perfect financial storm.

April 2, 2020

Navigating Healthcare System Investments Through the Coronavirus Crisis

Healthcare, Investment Planning, Market Implications of COVID-19 | Healthcare Series | Download

The novel coronavirus (COVID-19) pandemic has inflicted significant duress upon the operational and financial situations of nonprofit healthcare systems. An immediate response was necessary to escalate staffing, spending, and resources to provide emergency treatment to those affected by this highly contagious outbreak.

March 23, 2020

The Complex Relationship Between Inflation and Asset Prices

Credit/Fixed Income, Equities, Real Assets | Download

As we write in March 2020, COVID-19 is spreading across much of the world, undercutting economic activity. While we are unsure of how this situation will unfold, we have long believed that the best way to guard against future uncertainty is to have a well-constructed portfolio. One key component in that is understanding the relationship between asset prices and inflation.

March 16, 2020

Rate Cuts Are No Vaccine

Credit/Fixed Income, Market Implications of COVID-19, US

On Sunday, the Federal Reserve Bank announced a host of emergency measures intended to improve bond market liquidity and reduce borrowing costs, which come in response to rising signs of dislocation across Treasury, municipal, and corporate bond markets.

March 13, 2020

Emerging Markets Equity Manager Performance

Emerging/Frontier, Equities | Download

Of active emerging markets equity managers, 64% outperformed the MSCI Emerging Markets Index gross of fees in 2019 after three consecutive years of underperformance. This is a companion piece to the US, Global, and Global ex US charts books already published.

March 13, 2020

Europe Escalates Its Response to the Coronavirus Outbreak

Europe, Investment Planning, Market Implications of COVID-19

This week, the Bank of England and the European Central Bank both announced stimulus measures aimed at responding to the growing impact of COVID-19.

March 12, 2020

Global ex US Equity Manager Performance

Equities | Download

In 2019, 63% of active global ex US managers outperformed the MSCI EAFE Index gross of fees, with the median manager outperforming by 183 basis points. This is a companion piece to the US and Global chart books already published.

March 10, 2020

Crude Oil Prices Collapsed—Should Investors Buy Public Energy?

Market Implications of COVID-19, Real Assets

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.