In 2017, the median active global equity manager outperformed the MSCI World Index by 150 basis points (gross of fees), the seventh time in ten years that the median manager outperformed the index. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.
Not in the near term. The current environment of rising, but low, interest rates accompanied by strong earnings growth expectations is supportive for equities.
In over 40 different analyses and 100 charts, our annual report on the history of global markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations…
In 2017, 75.8% of active Global ex US managers outperformed the MSCI EAFE Index gross of fees, with the median manager outperforming by 260 basis points. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.
Despite strong overall returns, active managers continued their now four-year streak of underperformance against the index, with 54.4% underperforming (gross of fees) in 2017. For the year, the median US mid- to large-cap manager underperformed the Russell 1000® Index by 70 basis points. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.
No. The US public equity market remains the largest and most liquid in the world and continues to offer a robust opportunity set for investors.
As the economic cycle progresses, the next recession draws inexorably closer, bringing with it the next downturn in the credit cycle. Recognizing this, institutional investors are increasingly considering allocations to distressed debt managers. While lumping all distressed managers into one group is tempting, different managers have meaningfully different approaches and investors’ traditional way of thinking about distressed debt managers makes timing paramount. In this paper, we offer a new way to think about distressed investing that combines three complementary sub-strategies and encourages investors to allocate across the credit cycle.
No, most investors should sit tight. The persistence of strong corporate and macroeconomic fundamentals in the face of the recent sell-off and spike in volatility strongly suggests that the duration of the market rout should be limited.
This report summarizes portfolio returns, asset allocation, and related trends for 164 colleges and universities. Included are exhibits on asset class returns, performance attribution, risk analytics, policy portfolio benchmarking, and uncalled capital commitments to private investments. The report also contains sections on investment management structures and flows to and from the long-term investment portfolio. Finally, this year’s report includes a new section that looks at topics pertaining to governance and investment office staffing.
We are asked this question on a regular basis, but believe it is fundamentally the wrong question for investors to ask if they are seeking to outperform the market over the long term.