Playing the Long Game—Should the US Treasury Issue Ultra-Long Bonds?
Yes. Issuance of ultra-long Treasury bonds (greater than 30 years to maturity, including potentially 40-, 50-, and 100-year maturities) would benefit multiple constituents.
Research Publications Archive
Real Asset Dynamics: May 2017
Private equity energy fund raising is likely to hit an all-time high in 2017. In this edition of Real Asset Dynamics, we examine the trends in fund raising, commitments, and investments in energy and their implications.
In an Environment of Declining Demographics and Slow Productivity Growth, What Investments Look Attractive?
Investments with the potential to earn returns competitive with equities—without a dependence on economic growth—are especially valuable diversifiers for portfolios.
The Financial Performance of Real Assets Impact Investments: Introducing the Timber, Real Estate, and Infrastructure Impact Benchmarks
Within impact investing, real assets investments constitute one of the largest opportunity sets. This report presents findings from our analysis of the financial performance of 55 private real assets impact investing funds across three sectors: timber, real estate, and infrastructure. We find that risk-adjusted market rates of return are achievable in impact investing, but note that as with conventional funds, manager selection is key to success.
Do the Results of the First Round of the French Presidential Election Sound the All Clear for European Risk Assets?
Although the election results provide a powerful “risk-on” catalyst in the short term, the underlying long-term problems facing France and the Eurozone are unlikely to go away under a Macron presidency, so the old adage “sell in May and go away” may be vindicated yet again.
High-Yield Bonds: Still Not Compelling
We remain negative on high-yield bonds and only slightly more positive on leveraged loans, preferring other credit assets and strategies to help diversify portfolios.
Can College and University Endowments Do More?
Recent policy proposals assume endowments can do more to reduce their reliance on student revenue, and thus the cost of a college education. Our analysis shows that while well intentioned, these proposals will affect endowment and organizational stability and intergenerational equity.
Thought Mortality Was Dead? Considerations for Pensions Given the IRS’s Delay in Implementing RP-2014
The IRS’s somewhat unexpected decision to delay implementation of the RP-2014 mortality tables has impacted at least three separate aspects of pension plan strategy: calculating minimum contribution requirements; determining variable-rate PBGC premiums; and valuing lump-sum distributions to be paid out to terminated vested participants. This brief discusses what has changed and provides general considerations for all sponsors to weigh in the near term.
Should Investors Buy Downside Protection to Hedge Against an Equity Market Drop?
We don’t think so. Investors with diversified portfolios already have some cushion if equities sell off, and trying to time the market by buying derivatives or substantially reducing equity exposure is rife with behavioral risks.
A Stronger Union: Addressing the Unique Investment Challenges of Multiemployer Defined Benefit Plans
Adaptive and sophisticated strategies are necessary to serve the unique features, constraints, and needs of multiemployer plans. In this note, we explore some of the key challenges that many multiemployer plans face, discuss how to invest in light of these challenges, and provide thoughts on governance and the overall role of the investment advisor in the multiemployer context.