Investment Planning

Investment Publications Highlights: Second Quarter 2018

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Second quarter’s edition summarizes five article on trade policy. The first article finds that protectionism has failed as a US policy across various time periods; the second analyzes commonly held misconceptions about trade deficits; the third argues that although the risk of a trade war has increased in recent months, it remains low; the fourth examines the difficulties in relocating supply chains across countries and regions; and the fifth quantifies the potential impacts of a US withdrawal from NAFTA.

VantagePoint: Second Quarter 2018

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Advice in Brief The global economy and capital markets are constantly evolving. From the industrial revolution in the 1700s, to information technology in the last 45 years, waves of innovation have had profound implications for society, the global economy, and investors. At the same time, debt cycles, demographics, and productivity trends all have a slow-moving,…

Liability-Hedging Handbook: A Guide to Best Practices for US Pension Plans

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For many pension plans, investment strategy is often structured with a liability-hedging portfolio and a growth portfolio, with the weight and composition of each determined by a strategic asset allocation or a de-risking glidepath. Within this overall structure, the construction and calibration of the liability-hedging portfolio is integral to effective pension asset management. This report focuses exclusively on the liability-hedging portfolio, delineating key considerations and best practices for single-employer defined benefit plans including those sponsored by corporations, health care institutions, non-profit organizations, and certain partnerships.

Distressed Debt: A New Way to Categorize Managers

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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.

What Should Investors Expect in 2018?

Investors should expect more of the same in 2018, as many of the factors that drove risk assets higher this year remain in force. Still, 2017’s returns will be difficult to top for many asset classes, and investors should keep a wary eye out for unexpected inflation and geopolitical risks.