Europe Escalates Its Response to the Coronavirus Outbreak
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.
Research Publications Archive
Global ex US Equity Manager Performance
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.
Crude Oil Prices Collapsed—Should Investors Buy Public Energy?
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.
Global Equity Manager Performance: 2019
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.
Treasury Bond Yields Plunge to Historic Lows
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 Fed Eases as Virus Concerns Grow
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.
US Mid- to Large-Cap Equity Manager Performance
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.
Annual Review of Endowments: Fiscal Year 2019
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…
Pandemic Risks and Reactions
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.
Are Retail Investors the Vanguard of Private Equity?
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…