Heritage Wealth Advisors Asset Class Research: International Equity Investing Revisited July 27, 2012
|
|
- Ada Daniels
- 8 years ago
- Views:
Transcription
1 July 27, 2012 Since the Global Financial Crisis, we have been faced with many challenges in investing where some of the old rules and ideas have been questioned. Such challenges are a healthy part of the long term market dynamics, shaking out shorter term trends from longer term principles. Asset allocation, for instance, had been tested during the crisis, as rising cross asset correlations led to far riskier portfolios than many would have suspected. A quick glance would suggest that asset allocation did not work, but it is more important to look deeper at the approach to judge the validity of the strategy. For instance, a more rigorous approach to portfolio construction is to complement long term asset allocation, which exhibits more stability over extended periods of time, with shorter term views which help account for some of those rising correlations during stressed periods. Striking a balance between the two perspectives is part of the art of investing but is critical to achieving one s long term goals. The real point is to avoid reacting to broad statements on what works and does not, to understand the approach one is investing in, and then to make informed judgments. Those ideas extend from anything such as deep fundamental analysis on stocks and bonds to macroeconomic analysis and risk management. Today we are faced with another out of favor investment: international equity investing. What was considered so core to one s strategy just a few years ago is now being questioned as having any role whatsoever in a portfolio. And for good reason, as markets outside of the US have lagged over the past few years and the news out of Europe and Japan has not exactly been supportive. So why would one continue to invest globally rather than take a pure US approach? We think that there are both long and short term reasons that an investor can rely upon. Long Term Economic and Fundamental Support What are some of the longer term rationales for investing overseas? A few more commonly cited reasons are economic and market diversification, and greater return opportunities through a more globalized world economy. With economic diversification, non US stocks provide a natural hedge against some of the US s challenges: slow economic growth with the twin deficits (trade and fiscal). The excesses of the US economy, which are taking years to be worked out, have led to aggressive Federal Reserve policies to keep the economic recovery on tract. The US continues to run large trade deficits as we import more than non US consumers demand of our exports. And our fiscal imbalances lead to ever growing levels of debt. All these issues call for a long term scenario of a weaker US dollar as the Fed keeps interest rates low, inflation is allowed to rise to devalue our debt load to foreigners, and the dollar depreciates to make our exports more attractive globally. Exhibit 1: Inflation Fighters: Which Asset Classes Work Often Works International stocks High yield bonds and floating rate notes International bonds Hards assets and commodities Alternatives Sometimes Works US Stocks Rarely Works Treasuries and agencies Corporate Bonds Cash Source: DWS Investments With a depreciating dollar comes appreciating international equity prices relative to US stocks, as the earnings tabulated overseas hold greater value here at home. With some of the real issues the US has to face in 1
2 the coming years, international equity investing may help hedge some of that risk (see Exhibit 1, prior page). Market diversification, meaning adding less correlated non US equities to complement the US stock portion, has been one of the more cited reasons for adding international stocks to a portfolio. Since 1974, the S&P 500 has delivered a return of 10.5% per annum while experiencing 15.8% volatility. Investing in a global portfolio split between 70% US stocks and 30% non US actually yields slightly more return of 10.6% while taking less risk, realizing 15.1% volatility similar return with less risk. 1 such as China and India in years to come is probably too far of a reach in the other direction. While the diversification provided may be more modest going forward, we continue to believe that some benefits will continue to exist. Exhibit 3: Contribution to Global GDP: Developed vs. Emerging Countries GDP based on purchasing power parity share of world total Exhibit 2: US and Non US Stock Correlations 3 Year Trailing Returns between S&P 500 and MSCI EAFE Source:Bloomberg, HWA Research This is one of the most oft cited benefits of diversification over long periods of time one can improve risk adjusted performance. Yet part of that benefit arrives from lower correlations between US and non US markets. As Exhibit 2 shows, much of that correlation benefit has diminished. This is not surprising, as global markets growing interdependence is leading to more synchronized movements of markets. Macroeconomic forces can have outsized impacts on stock prices over shorter periods and when those forces become more dependent on one another the benefits of market diversification lessens. To think that the US economy will move completely in tandem with some of the growing powers of the world 1 Benchmark: 70% S&P 500, 30% MSCI EAFE (Gross, US Dollars) from , 30% MSCI ACWI ex USA (Gross, US Dollars) from Period 1/1974 6/2012, rebalanced annually Projected US All other Developed Countries Emerging Countries Source: IMF, World Economic Outlook Database (4/12), HWA Research The increasingly globalized economy, with superior demographics in developing nations, paired with freer cross border trade, has led to greater return opportunities throughout the world. As Exhibit 3 shows, the global economy will likely look much different in the future than it did 30 years ago. While the US contributed roughly 25% to global GDP in 1980, that percentage is projected to fall to less than 18% in In the meantime, emerging market nations contribution is expected to rise to over 50%. There are multiple ways to access these themes, but in the end it is important to gain some exposure within one s portfolio. Knowing What You Own and What You Should Pay With these general concepts of the long term benefits of international investing remaining intact, we next look 2
3 towards what is happening in today s markets and how that is influencing our current decision making. One of the biggest challenges to international investing today is driven by the issues in Europe and China, as well as Japan. We will not go into a deep analysis of the issues as there is no shortage of commentary from us or others. For now let s just say that such risks exist and the questions are what exactly are you buying overseas and what news has already been discounted by the market. But to be fair, let us also assume that the US is not immune to such risks with its own challenges in the upcoming election, political stalemates, fiscal cliff, debt imbalances, etc. The point being that the US is not exactly the model to admire for economic health. Yet corporations within the US are, given their strong balance sheets, quality management and earnings strength. With the global nature of the world economy, it is important to realize that investment managers buy companies, not countries. where to invest, it has far more to do with the management of the company, its business plan, product offering, etc., rather than where the company is headquartered. We would rather allow a skilled analyst with deep knowledge of global industries to pick the best company rather than pick the best one located within US borders. And while multi nationals are one way to access the themes of the growth in emerging markets, some portion of a portfolio should be allocated directly to companies within these regions. These companies represent more of the pure plays on these investment themes which may offer some of the biggest return potential for investors. Using a skilled investment manager with local insight is a great way to uncover these opportunities. Exhibit 4: European Stock Performance vs. US MSCI Europe (Net, Local) relative to S&P 500. Index based on 100 as of Year Low Source: BCA Research, Bloomberg, HWA Research Some companies are inherently tied to their local economy. For instance, an electronics retailer in Spain is certainly subject to the fortunes of the local Spanish consumer and therefore impacted by the depressed economy there. However, a global energy producer or pharmaceutical company, with a reach around the globe has far less to do with local conditions. At that level, it is more a battle between multinationals based around the world: Sanofi vs. Pfizer, BMW vs. Ford, or Royal Dutch Shell vs. ExxonMobil. When making the decision of So in the context of owning multinational corporations exposed to the developing market growth trends or local companies in those emerging markets, rather than companies with direct exposure to some of the headwinds around the world, we now turn to one of the most fundamental tools for long term investing: valuation. With all of the bad news weighing on international markets, valuations have reached extreme levels outside of the US. As Exhibit 4 shows, prices have reached once in a lifetime levels in Europe relative to the US. At the same time, non US companies across the globe are very cheap (see Exhibit 5) compared to their US counterparts. Could things get worse before they get better in Europe or elsewhere throughout the world? Absolutely, but with valuations as cheap as they are, 3
4 much of the bad news, including that related to the sovereign debt crisis, has been priced in. That is exactly what valuations reflect a balance between return and risk. Unless one has particular insight that the market has not already discounted, a company s valuation can be thought of as the market s view of all publically available news. Over time, valuations tend to mean revert, meaning cheap stocks tend to rise in price while expensive ones fall. When thinking of valuation based investing, one should not equate it with distressed investing, but instead on purchasing high quality companies that trade at a discount to their global peers. So while things may feel bad overseas, one needs to ask oneself what they know that the market does not. Valuation can sometimes require patience, as it did when buying old economy companies during the tech boom in the late 90s, but when the market does turn, patient investors are typically rewarded. Investment Based on Confidence, Not Crystal Balls We have talked about how international equity investing makes sense given its risk mitigating properties as well as exposure to high quality return opportunities trading at compelling valuations. So if one believes in the long term story as well as the short term one, the last question we will address is timing. Market timing is one of the more debated topics in investing, even more so since the large sell offs during the financial crisis. Pre crisis, the buy andhold philosophy ruled, as numerous academic studies have showed that few had the ability to successfully predict the short term direction of markets. Post crisis there has been a reemergence of the idea of market timing, as the only way one could have avoided the large drawdowns would have been to successfully time exit and reentry points. Importantly, what has not changed is the evidence of one s ability to do so and we continue to look at such strategies with skepticism. Big market returns, both up and down, tend to be clustered together, making it difficult to get both the sell and buy timed right. Further, trailing market returns say little about where the market is going next. For example, as Exhibit 6 shows, the trailing year return of the S&P 500 has a 0.08 correlation with the next year. That low of a correlation essentially says that one cannot use past information to make good investment decisions. The same is true for other periods of time as the chart shows. Are investors doing more damage to their portfolios by timing exit and entry points, especially when considering the costs of doing so which include commissions, fees, market impact and taxes? Exhibit 6: Correlation of Prior Period with Forward Returns S&P 500 Trailing Price Return Correlation with Forward Price Return Day Week Month Quarter Year Source: Bloomberg, HWA Research Our perspective on international equity investing combines all of these views to arrive at what we feel is an appropriate positioning for our clients. We balance what we think we know versus what we are less certain of and avoid the trap of overconfidence. Investors will quickly throw out strong, fundamental and economic arguments due to emotions driven by the day to day noise coming out of the media. As long term investors, we remind our clients that we avoid the noise, base our investment approach on what we have confidence in (e.g., long term economic trends, valuations) and resist the temptation to act on emotion (i.e., market timing). Where that approach takes us today is to continue to hold international equities as part of our diversified portfolios to receive the benefits of what a long term horizon should bring. At the same time, we hold somewhat less than our neutral allocation would suggest given the volatility the asset class has endured over the 4
5 past couple of years. With the likelihood that both US and non US markets will remain volatile for the remainder of the year, we continue to maintain that positioning. We look to such extreme valuations to begin closing that underweight at some point in the future. In the end, our perspective is to balance the long and the short term by continuing to hold an allocation in international equities but reflect some of the shorterterm risks that are somewhat more difficult to predict. That, we feel, shields us as best as possible from reacting on fear and emotion of the day to day media noise, avoid the bias of overconfidence in the ability to time markets, and keep our clients appropriately invested to capture the eventual market recovery that patient long term investors should reap the benefits of. The Heritage Wealth Advisors Team Telephone: (804) Website: 5
INVESTMENT INSIGHTS. Valuation, diversification, income and growth International Investing. NOT FDIC INSURED No BANK GUARANTEE MAY LOSE VALUE
INVESTMENT INSIGHTS Valuation, diversification, income and growth International Investing NOT FDIC INSURED No BANK GUARANTEE MAY LOSE VALUE Valuation, diversification, income and growth Today 368 of the
More informationLong/Short Equity Investing Part I Styles, Strategies, and Implementation Considerations
Long/Short Equity Investing Part I Styles, Strategies, and Implementation Considerations Scott Larson, Associate Portfolio Manager for Directional Strategies This is Part I of a two part series. In Part
More informationSeeking a More Efficient Fixed Income Portfolio with Asia Bonds
Seeking a More Efficient Fixed Income Portfolio with Asia s Seeking a More Efficient Fixed Income Portfolio with Asia s Drawing upon different drivers for performance, Asia fixed income may improve risk-return
More informationFREQUENTLY ASKED QUESTIONS March 2015
FREQUENTLY ASKED QUESTIONS March 2015 Table of Contents I. Offering a Hedge Fund Strategy in a Mutual Fund Structure... 3 II. Fundamental Research... 4 III. Portfolio Construction... 6 IV. Fund Expenses
More informationPurer return and reduced volatility: Hedging currency risk in international-equity portfolios
Purer return and reduced volatility: Hedging currency risk in international-equity portfolios Currency-hedged exchange-traded funds (ETFs) offer investors a compelling way to access international-equity
More informationDiversify your global asset allocation approach by focusing on income and income growth.
Diversify your global asset allocation approach by focusing on income and income growth. Institutional investors have embraced global asset allocation (GAA) strategies as a way to pursue returns with low
More informationSeptember 2013 Harvard Management Company Endowment Report Message from the CEO
Introduction For the fiscal year ended June 30, 2013 the return on the Harvard endowment was 11.3% and the endowment was valued at $32.7 billion. The return exceeded our benchmark by a healthy 223 basis
More informationSHORT DURATION BONDS
SHORT DURATION BONDS Our Short Duration Bond Fund range RL Short Duration Gilt Fund RL Short Duration Global Index Linked Bond Fund RL Short Duration Credit Fund RL Duration Hedged Credit Fund RL Short
More informationBonds: A Solution for Yield-Starved Insurance Companies?
August 2015 A Solution for Yield-Starved Insurance Companies: Dividend Equities Federal Reserve efforts to normalize monetary policy are unlikely to provide meaningful relief for yield-starved insurance
More informationWhy Treasury Yields Are Projected to Remain Low in 2015 March 2015
Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While
More informationNPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst
White Paper: NPH Fixed Income Research Update Authored By: Bob Downing, CFA NPH Senior Investment & Due Diligence Analyst National Planning Holdings, Inc. Due Diligence Department National Planning Holdings,
More information2015 2 nd Quarter Market Commentary
2015 2 nd Quarter Market Commentary 1 Second Quarter Summary The U.S. Federal Reserve communicated that recent economic growth means the era of easy money may soon come to a close, causing bond yields
More informationPurer return and reduced volatility: Hedging currency risk in international-equity portfolios
Purer return and reduced volatility: Hedging currency risk in international-equity portfolios Currency-hedged exchange-traded funds (ETFs) may offer investors a compelling way to more precisely access
More information2013 global equity outlook: Searching for alpha in a stock picker s market
March 2013 2013 global equity outlook: Searching for alpha in a stock picker s market Saira Malik, Head of Global Equity Research, TIAA-CREF Executive summary The outlook for equity markets is favorable
More informationFirst Quarter 2015 Financial Market Commentary April, 2015. Stocks Hit New Highs in a Volatile Quarter
Hit New Highs in a Volatile Quarter Stock investors in the U.S. and around the globe had plenty to cheer about during the first quarter of 2015 as at least 17 world stock indexes set news highs due to
More informationEconomic & Market Outlook
Monthly Portfolio Commentary December 31, 2015 Economic & Market Outlook Stocks rebounded in 2015 s fourth quarter, but provided little reward for the year as a whole. The S&P 500 Index recovered from
More informationThe recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong
Investment Insights The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong Kevin Lorenz, CFA, Managing Director, Lead Portfolio Manager of TIAA-CREF's High-Yield Fund
More informationAbout Hedge Funds. What is a Hedge Fund?
About Hedge Funds What is a Hedge Fund? A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost
More informationInternational Equities: Another Turn of the Wheel
International Equities: Another Turn of the Wheel May 6, 2015 by David Ruff of Forward Investing Non-U.S. equities have recently surged after a long spell of underperformance. Does this signal a new market
More information2015 Mid-Year Market Review
2015 Mid-Year Market Review Cedar Hill Associates, LLC www.cedhill.com 6111 North River Road, Suite 1100, Rosemont, Illinois 60018 Phone: 312/445-2900 An Affiliate of MB Financial Bank 2015 Major Investment
More informationto Wealth Management resources of one of the world s largest financial services firms. The Caribbean Group
A Defined Approach to Wealth Management Giving UWI access to the combined resources of one of the world s largest financial services firms. The Caribbean Group The information in this presentation is intended
More informationMLC Investment Management. Constructing Fixed Income Portfolios in a Low Interest Rate Environment. August 2010
Constructing Fixed Income Portfolios in a Low Interest Rate Environment August 2010 Stuart Piper Portfolio Manager MLC Investment Management For Adviser Use Only 1 Important Information: This Information
More informationRe-Assessing Multi-Strategy Hedge Funds Aaron Mirandon, Associate Portfolio Manager
Re-Assessing Multi-Strategy Hedge Funds Aaron Mirandon, Associate Portfolio Manager { Overview } The market returns from September 2008 through mid-2010 have introduced some extraordinary market movements
More informationUnderstanding Currency
Understanding Currency Overlay July 2010 PREPARED BY Gregory J. Leonberger, FSA Director of Research Abstract As portfolios have expanded to include international investments, investors must be aware of
More informationWith interest rates at historically low levels, and the U.S. economy showing continued strength,
Managing Interest Rate Risk in Your Bond Holdings THE RIGHT STRATEGY MAY HELP FIXED INCOME PORTFOLIOS DURING PERIODS OF RISING INTEREST RATES. With interest rates at historically low levels, and the U.S.
More informationishares MINIMUM VOLATILITY SUITE SEEKING TO WEATHER THE MARKET S UP AND DOWNS
ishares MINIMUM VOLATILITY SUITE SEEKING TO WEATHER THE MARKET S UP AND DOWNS Table of Contents 1 Introducing the ishares Minimum Volatility Suite... 02 2 Why Consider the ishares Minimum Volatility Suite?...
More informationAbsolute return strategies offer modern diversification
February 2015» White paper Absolute return strategies offer modern diversification Key takeaways Absolute return differs from traditional stock and bond investing. Absolute return seeks to reduce market
More informationManaging Risk/Reward in Fixed Income
INSIGHTS Managing Risk/Reward in Fixed Income Using Global Currency-Hedged Indices as Benchmarks In the pursuit of alpha, is it better to use a global hedged or unhedged index as a benchmark for measuring
More informationBond Fund Investing in a Rising Rate Environment
MUTUAL FUND RESEARCH Danette Szakaly Ext. 71937 Date Issued: 1/14/11 Fund Investing in a Rising Rate Environment The recent rise in U.S. Treasury bond yields has some investors wondering how to manage
More informationGMO White Paper. The Case for Not Currency Hedging Foreign Equity Investments: A U.S. Investor s Perspective EXECUTIVE SUMMARY.
GMO White Paper The Case for Not Currency Hedging Foreign Equity Investments: A U.S. Investor s Perspective Catherine LeGraw Apr 2015 EXECUTIVE SUMMARY Investors often ask about GMO s approach to currency
More informationSmartRetirement Mutual Fund Commentary
SmartRetirement Mutual Fund Commentary J.P.Morgan Asset Management 3 rd Quarter 2014 Performance Highlights SmartRetirement s Performance Objectives The JPMorgan SmartRetirement Mutual Funds are designed
More informationCrafting a Forward Looking Investment Portfolio
BOURSE SECURITIES LIMITED February 15th, 2016 Crafting a Forward Looking Investment Portfolio This week, we at Bourse evaluate the investment considerations and opportunities having looked previously at
More informationDrobny Guest Research September 12, 2012
Drobny Guest Research September 12, 2012 3701 Highland Ave, Suite 302, Manhattan Beach, CA 90266 andres@drobny.com (310) 545-6996 ------------------------------------------------------------------------------------------------------------
More informationSan Diego City Employees Retirement System
San Diego City Employees Retirement System Asset Allocation Review July 9, 2015 Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 1 (This page
More informationPortfolio Series Portfolio Review Second Quarter 2010
Portfolio Series Portfolio Review Second Quarter 2010 We are pleased to introduce Portfolio Review, a new quarterly report on Portfolio Series. 3 Portfolio Series Income Fund 7 Portfolio Series Conservative
More informationSACRS Fall Conference 2013
SACRS Fall Conference 2013 Bank Loans November 14, 2013 Allan Martin, Partner What Are Floating Rate Bank Loans? Senior secured floating rate debt: Current Typical Terms: Spread: LIBOR + 5.00%-6.00% LIBOR
More informationInvestment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients
Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients www.mce-ama.com/2396 Senior Managers Days 4 www.mce-ama.com 1 WHY attend this programme? This
More informationScore. Stifel CONQUEST Portfolios. Research-Driven Portfolios PORTFOLIO STRATEGY EXCHANGE TRADED FUNDS. Ease of Diversification
Stifel CONQUEST Portfolios PORTFOLIO STRATEGY The Washington Crossing Advisors Stifel CONQUEST Portfolios seek to add value by actively allocating assets among U.S. equities, bonds, commodities, and foreign
More informationHow Much Should We Invest in Emerging Markets?
How Much Should We Invest in Emerging Markets? May 28, 2015 by Dr. Burton Malkiel of WaveFront Capital Management Investors today are significantly underexposed to emerging markets; fortunately, the opportunity
More informationEconomic Snapshot January 2013
January 2013 In summary January saw 2013 begin on a good note with strong gains on local markets. In percentage terms the Australian share market rose approximately 5%. This means the market has risen
More informationOpportunity in High Yield Bonds
Research Opportunity in High Yield Bonds 2016 Q1 Quarterly Commentary Weyland Capital Management LLC - 22 Deer Street - Portsmouth, New Hampshire 03801 p. 603.433.8994 www.weyland.com This document reflects
More informationStonegate Wealth Management. Registered Investment Advisor 17-17 Route 208 Fair Lawn, N.J. 07410 (201) 791-0085 www.stonegatewealth.
Stonegate Wealth Management Registered Investment Advisor 17-17 Route 208 Fair Lawn, N.J. 07410 (201) 791-0085 www.stonegatewealth.com Stonegate Wealth Management $200 Million in assets under management.
More informationInvestment management. Tailor-made investment solutions
Investment management Tailor-made investment solutions ABOUT US Tilney Bestinvest is a leading investment and financial planning firm that builds on a heritage of more than 150 years. We look after more
More informationRE-DEFINING RISK FOR INTERNATIONAL EQUITY INVESTING
RE-DEFINING RISK FOR INTERNATIONAL EQUITY INVESTING Co-authors: Theodore Lucas, Shirish Malekar, and Andrew Alden, CFA For investors seeking to diversify their portfolios and access the growth opportunities
More informationINVESTMENT POLICY STATEMENT Valued Client
INVESTMENT POLICY STATEMENT Valued Client August 17, 2010 PREPARED BY: John Ohl Bay Colony Advisors 91 Main St STE 308 Concord, Massachusetts 01742 (978) 369-7200 John@baycolonyadvisors.com www.baycolonyadvisors.com
More informationDOUGLAS S. WEISS, CFA! INVESTMENT ADVISOR D E C E M B E R 2 0 1 2
DOUGLAS S. WEISS, CFA! INVESTMENT ADVISOR D E C E M B E R 2 0 1 2 EXPERIENCE / EXPERTISE Registered Investment Advisor ( RIA ) focused on constructing and managing risk optimized portfolios for individual
More informationANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK?
May 9, 2016 ANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK? A favorable credit environment and technical factors have contributed to strong high-yield municipal performance. We see limited room for further
More informationYukon Wealth Management, Inc.
This summary reflects our views as of 12/15/08. Merrill Lynch High Yield Master Index effective yield at 23%. Asset Class Review: High-Yield Bonds Executive Summary High-yield bonds have had a terrible
More informationHigh Yield Bonds A Primer
High Yield Bonds A Primer With our extensive history in the Canadian credit market dating back to the Income Trust period, our portfolio managers believe that there is considerable merit in including select
More informationInvestment Strategies for Pension Funds. Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK)
Investment Strategies for Pension Funds Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK) Pensions need consistency but markets deliver chaos Discrete Yearly
More informationDiversify your wealth internationally
ab UBS Swiss Financial Advisers Diversify your wealth internationally UBS Swiss Financial Advisers offers US investors a safe, easy and tax-compliant way to diversify their assets abroad. Contents 3 Why
More informationForeign Exchange Investments Discover the World of Currencies. Private Banking USA
Foreign Exchange Investments Discover the World of Currencies Credit Suisse Securities (USA) llc Private Banking USA 2 Foreign exchange: There s no ignoring the largest market in the world. Introduction
More informationSAGE BRIEFINGS Timely Financial Viewpoints
June 19, 2012 Investing Internationally The headline events outside of the United States, most notably those pertaining to Europe and its debt crisis, can understandably raise questions about investing
More informationInfrastructure is a Hybrid Asset Class with Different Risk/Return Profiles
Europe 20 Grosvenor Place London, UK SW1X 7HN Tel +44 (0)20 7838 7640 North America 6641 West Broad Street Suite 402 Richmond VA 23230 Tel +1 804 282 9000 Asia #37-06/10, Ocean Financial Centre 10 Collyer
More informationUsing Currency Futures to Hedge Currency Risk
Using Currency Futures to Hedge Currency Risk By Sayee Srinivasan & Steven Youngren Product Research & Development Chicago Mercantile Exchange Inc. Introduction Investment professionals face a tough climate.
More informationOpportunities in credit higher quality high-yield bonds
Highlights > > Default rates below the long-term average > > Valuations wide of historical average in BB and B rated credit > > Despite sluggish economy, high yield can still perform well > > High yield
More information2013 GSAM Insurance Survey & Industry Investment Trends
Global Insurance Asset Management AASCIF Annual Workshop Fall 23 23 GSAM Insurance Survey & Industry Investment Trends Michael Siegel, PhD Global Head of GSAM Insurance Asset Management September 3, 23
More informationIntroduction to. A Wealth Protection Strategy
Introduction to Investing in Gold A Wealth Protection Strategy To begin a discussion on portfolio diversification with Gold, let s start by examining the reasons investors purchase Gold in the first place.
More informationAbsolute return investments in rising interest rate environments
2014 Absolute return investments in rising interest rate environments Todd White, Head of Alternative Investments Joe Mallen, Senior Business Analyst In a balanced portfolio, fixed-income investments have
More informationStanford Management Company 2014 Annual Report
Stanford Management Company 2014 Annual Report The Stanford Management Company (SMC) was established in 1991 to manage Stanford s financial assets. SMC is a division of the University with oversight by
More informationTen reasons to be invested in European Listed Real Estate
Ten reasons to be invested in European Listed Real Estate Executive Summary At Petercam Institutional Asset, we are convinced that investing part of one s assets in European listed real estate makes sense.
More informationInstitutional Investor Asset Management in a Low Return/High Risk World
Institutional Investor Asset Management in a Low Return/High Risk World Dr. Eliot Kalter President, E M Strategies Senior Fellow, The Fletcher School EKalter@EMStrategies.com Executive Summary I. Global
More informationThe Benefits of Making Systematic Trade-Offs Between Risk and Return
The Benefits of Making Systematic Trade-Offs Between Risk and Return August 2015 By Jeremy Berman Justin Frankel Co-Portfolio Managers of the RiverPark Structural Alpha Fund The Benefits of Making Systematic
More informationPositioning Global Portfolios for the Next Phase of the Economic Recovery
FOR INVESTMENT PROFESSIONALS ONLY Positioning Global Portfolios for the Next Phase of the Economic Recovery Portfolio manager discusses his views on the global economic recovery and how they help determine
More informationFLEXIBLE EXCHANGE RATES
FLEXIBLE EXCHANGE RATES Along with globalization has come a high degree of interdependence. Central to this is a flexible exchange rate system, where exchange rates are determined each business day by
More informationHIGH QUALITY PREMIER OUR PHILOSOPHY THE ATTRIBUTES OUR APPROACH
HIGH QUALITY PREMIER September 30, 2015 (3Q) FACT SHEET OUR PHILOSOPHY We believe that securities with stable and predictable cash flows, and low credit and event risk produce consistent returns while
More informationUnderstanding Fixed Income
Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding
More informationEconomy, Capital Markets & Strategy
Sébastien Mc Mahon, CFA Economist Member, Asset Mix Committee Economy, Capital Markets & Strategy 2014 National Business Conference October 2014 1 October 23, 2014 Disclaimer Opinions expressed in this
More informationNavigating through flexible bond funds
WHITE PAPER February 2015 For professional investors Navigating through flexible bond funds Risk management as a key focus point Kommer van Trigt Winfried G. Hallerbach Navigating through flexible bond
More information2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013
2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%
More informationThe Emerging Markets The Evolving View From a Developed Perspective
The Emerging Markets The Evolving View From a Developed Perspective CFA Society Pittsburgh May 22, 2014 John Parsons Partner & Manager, Institutional Marketing MSCI Classification of Global Equity Markets
More information2012 First Quarter Equity Market Review
Investment Insights 2012 First Quarter Equity Market Review By William Riegel, Head of Equity Investments After a volatile year in 2011, equity markets grew more confident in the first quarter of 2012.
More informationBack to Basics Investment Portfolio Risk Management
Back to Basics Investment Portfolio Risk Management By Tom Slefinger, Senior Vice President, Director of Institutional Fixed Income Sales at Balance Sheet Solutions, LLC. Tom can be reached at tom.slefinger@balancesheetsolutions.org.
More informationDiversify your wealth internationally
ab UBS Swiss Financial Advisers Diversify your wealth internationally UBS Swiss Financial Advisers offers US investors a safe, easy and tax-compliant way to diversify their assets abroad. Contents 3 Why
More informationIs Gold Worth Its Weight in a Portfolio?
Is Gold Worth Its Weight in a Portfolio? During a weak global economy and uncertain financial markets, many investors tout the benefits of holding gold. Some proponents claim that gold deserves a significant
More informationPublic Equity Portfolio Overview May 29, 2013
Public Equity Portfolio Overview May 29, 2013 Agenda Equity Markets Overview Portfolio Profile Portfolio Structure Activities/Accomplishments Global Equity Initiatives Hedged Equity Portfolio 2 General
More informationWe See Opportunities in Commodities
We See Opportunities in Commodities March 22, 2014 by Bob Greer, Ronit M. Walny, Klaus Thuerbach of PIMCO Fundamentals and some recent data suggest that challenging trends for commodity investing may be
More informationGundlach s High-Conviction Investment Idea By Robert Huebscher December 26, 2012
Gundlach s High-Conviction Investment Idea By Robert Huebscher December 26, 2012 Count Jeffrey Gundlach among those who expect Japan s currency to collapse because it can t service its debt. Japan s challenges
More informationHow Smaller Stocks May Offer Larger Returns
Strategic Advisory Solutions April 2015 How Smaller Stocks May Offer Larger Returns In an environment where the US continues to be the growth engine of the developed world, investors may find opportunity
More informationAMP Capital Investment Funds
AMP Capital Investment Funds Investment Statement Dated: 18 September 2015 Issued by AMP Investment Management (N.Z.) Limited Important information (The information in this section is required under the
More informationFund commentary. John Hancock Lifestyle Portfolios Q1 2016
Fund commentary John Hancock Lifestyle Portfolios Seek: Long-term growth of capital or a balance between a high level of current income and growth of capital Use for: Broadly diversified, risk-targeted
More informationETF Portfolio Solutions Core Diversified ETF Model December quarter 2013
ETF Portfolio Solutions ETF Model December quarter 2013 PORTFOLIO SOLUTIONS Portfolio Objective The broad investment objective of the ETF Model is to offer financial advisers an ETF-based investment portfolio
More informationTo Hedge or Not To Hedge: Foreign Currency Exposure in Canada
PRACTICE ESSENTIALS EQUITY 201 Canada To Hedge or Not To Hedge: Foreign Currency Exposure in Canada CONTRIBUTORS Sabrina Salemi Analyst Product Management sabrina.salemi@spdji.com Phil Murphy, CFA Vice
More informationInvesting in International Financial Markets
APPENDIX 3 Investing in International Financial Markets http:// Visit http://money.cnn.com for current national and international market data and analyses. The trading of financial assets (such as stocks
More informationCALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing
CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing A Challenging Environment for Investors MOVING BEYOND TRADITIONAL FIXED-INCOME INVESTING ALONE For many advisors and
More informationIntelligent Systematic Value Investing
Intelligent Systematic Value Investing 2 ND Quarter 2015 Overview of the Markets Contents: A NEWSLETTER FOR OUR CLIENTS Investment Overview Required Disclosures GIPS Compliant Performance Reports Global
More informationInvestment Services 4 4
Investment Intelligence Our Philosophy 1 Our philosophy is to provide unbiased top quality investment services and solutions tailored to your individual needs, objectives and risk tolerance based on a
More informationSuccessful value investing: the long term approach
Successful value investing: the long term approach Neil Walton, Head of Global Strategic Solutions, Schroders Do you have the patience to be a value investor? The long-term outperformance of a value investment
More informationThe UC Berkeley Foundation
The ANNUAL REPORT of BERKELEY S ENDOWMENT 2013 14 The UC Berkeley Foundation ENDOWMENT RETURNS AND INVESTMENT POLICY by John-Austin Saviano, Chief Investment Oicer, Berkeley Endowment Management Company
More informationMaster Limited Partnerships (MLPs):
Master Limited Partnerships (MLPs): Frequently Asked Questions Yorkville Capital Management LLC www.yorkvillecapital.com 950 Third Avenue, 23 rd Floor New York, NY 10022 (212) 755-1970 Table of Contents
More informationFixed Income Investing: What s an Investor to Do?
INSIGHTS Fixed Income Investing: What s an Investor to Do? July 2012 203.621.1700 2012, Rocaton Investment Advisors, LLC Executive Summary As interest rates have fallen steadily over the past 20 years,
More informationHow Gold Improves Alternative Asset
How Gold Improves Alternative Asset Performance Alternative investments began gaining traction during the inflationary times of the late 1970s and early 1980s. Modern Portfolio Theory (MPT), as outlined
More informationInvestment Strategy for Pensions Actuaries A Multi Asset Class Approach
Investment Strategy for Pensions Actuaries A Multi Asset Class Approach 16 January 2007 Representing Schroders: Neil Walton Head of Strategic Solutions Tel: 020 7658 2486 Email: Neil.Walton@Schroders.com
More informationChanges to the OklahomaDream 529 Plan
Supplement dated December 31, 2015 to Oklahoma Dream Advisor Sold 529 Program Plan Disclosure Statement for Investors Using a Financial Advisor (Classes A and C) Dated November 3, 2014 This Supplement
More informationCFA Institute Contingency Reserves Investment Policy Effective 8 February 2012
CFA Institute Contingency Reserves Investment Policy Effective 8 February 2012 Purpose This policy statement provides guidance to CFA Institute management and Board regarding the CFA Institute Reserves
More informationStrategy Monthly. Unfixed Income. May 26, 2015
Strategy Monthly Unfixed Income The yield on traditional fixed income this year has been anything but fixed. From a low of. % on the last day of January, the yield to maturity on the ten year Treasury
More informationGIPS List of Composite Descriptions. Perkins Composites...11. Fixed Income Composites... 14. Global Macro Composites...19. Alternative Composites...
GIPS List of Composite Descriptions Updated 6/4/2015 Janus Equity Composites...2 Perkins Composites....11 Fixed Income Composites... 14 Global Macro Composites...19 Alternative Composites.....19 Allocation
More informationQuarterly Asset Class Report Institutional Fixed Income
Quarterly Asset Class Report Institutional Presentation To: Presented By: canterburyconsulting.com September 30, 015 Role in the Canterbury Consulting recommends and communicates asset-class strategy with
More informationOpenWorld Dynamic Assets Fund
FUND BROCHURE OpenWorld Dynamic Assets Fund Protecting and generating wealth For Professional Investors only Russell s OpenWorld fund range offers investors access to some of Russell s highest conviction
More informationOur time-tested approach to investing is very straightforward. And we re ready to make it work for you.
What Works Our time-tested approach to investing is very straightforward. And we re ready to make it work for you. Three important steps. Ten effective principles. Three important steps. Ten effective
More information