-
Paper Explores How Liquid Alternatives Can More Effectively Diversify A Fixed Income Allocation
A “Blue Paper” titled It’s all About your Core from Pioneer Investment’s Thomas Swaney discusses how traditional diversified fixed income strategies may offer investors lower benefits than they think and that there may potentially be “equity-like risk” in non-treasury fixed income asset classes. Specifically, Swaney cites research showing that various asset classes within the fixed income space may have higher correlations to equity markets and investors must truly understand these risks within their portfolios. In times of... -
ETF Model SolutionsTM In the News:’ Prateek Mehrotra, CIO Comments on Current Equity Prices in Institutional Investor
Comments from Prateek Mehrotra, CIO of ETF Model SolutionsTM, were printed in InstitutionalInvestor.com earlier today in an article titled Portfolio Perspective: Warning Signs for Your Client’s Stock Market Exposure. In the article, Prateek discusses a number of valuation metrics that he follows, many of which are extended. This leaves the market potentially vulnerable to a “mean-reversion” type correction, although there is room for further upside in equity prices. He further comments that “Portfolios can... -
Five Reasons Endowments Must Stick With their Long Term Investment Strategy Despite Recent Underperformance
The below excerpt was taken from an article written by Prateek Mehrotra, MBA, CFA®, CAIA® which was posted on GuruFocus.com website on Friday 8/2/2014. The portfolio managers atop the country’s most respected university endowments failed to make the honor roll during the current bull market despite their top salaries and genius IQs. Harvard University’s $32.7 billion endowment returned an average of 10.5% annually over the past three years through... -
Use of Liquid Alts in Defined Contribution Plans is on the Rise
ETF Model SolutionTM’s Collective Investment Fund was mentioned today in an article on DailyAlts.com. “Last week, the Alta Trust Company and ETF Model SolutionsTM announced the launch of the Endowment CIF (Collective Investment Fund), which is designed to emulate the strategies of endowments, pension funds, and defined benefit plans. But instead of investing in illiquid alternatives like limited partnerships and private placements, the Endowment CIF will use alternative ETFs... -
Rapid rise of Alternative Investments
Most alternative investment assets are held by institutional investors or by accredited, high-net-worth individuals and, according to Preqin, now total $6 trillion. Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts. But alternative investments aren’t just for institutions any longer. According to Morningstar alternatives investment analyst Josh Charney, $38.7 billion flowed into alternative investment mutual funds and ETFs over the year ended April 30, 2014.... -
Recent Studies Highlight Rapid Use of Liquid Alternatives. Managers Set Sights on DC Plans
A recent article published by COOConnect provides hard data on the growing use of alternative investments. Our key takeaways: “The liquid alternatives industry is growing at a faster rate than traditional hedge funds as investor interest in these regulated structures shows no sign of abating. Liquid Alternatives grew 43% in 2013 to $137 billion and will reach between $650 and $950 billion by 2018.” ... -
Alternative Investments
The use of alternative investments continues to grow. According to Lipper, alternative mutual funds saw the biggest percentage growth of any fund group, with assets under management increasing 41% to $178.6 billion in 2013. A recent report by Goldman Sachs projects liquid alternatives are in the early stage of a growth trend that could produce $2 trillion in assets under management in the next 10 years. The number of funds have... -
Growth of Liquid Alternatives
The proliferation of liquid alternative strategies is causing many advisors to take so much time away from servicing their clients that it has become a distraction. As the saying goes, you’ll spend 90% of your time looking at alternatives, and it will make up just 10% of your portfolio. There was nearly $162 billion in assets in 429 alternative mutual funds at the end of February 2014, up from...
