The author explores the advantages and disadvantages of the outsourced CIO model relative to non-discretionary models and suggests how investors might think about choosing between the two models.
Senior security, floating interest payments and covenant protection make these loans a unique asset class. Their historically steady returns, low volatility and negative correlation with investment-grade fixed income could enhance returns while reducing portfolio volatility.
While oil prices are likely to be range-bound across the next few years, natural gas prices are establishing new, higher support levels after experiencing multi-year lows. Natural gas prices are likely to get a boost from politics as well as the weather and speculation.
Investment innovation and rigorous discipline; dynamic, seamless planning; and a different quality of client-advisor engagement will be key to the achievement of long-term objectives for wealth accumulation, protection, spending and transfer as well as to peace of mind.
In the first of a two-part series, the author defines the various types of investment styles and strategies of long/short equity managers, as well as explores their portfolio construction characteristics and techniques.
Gifting may be the place to start in planning a long-term estate planning strategy, according to this paper from Wells Fargo. While gifting can be useful in transferring tax savings, it also can provide a real-time snapshot of the estate plan by allowing the giver to see how beneficiaries accept and respond to the gifts and then to change the estat...
The recent economic crisis resulted not only in a significant loss of wealth, but also in a loss of trust. This article addresses the psychology of that loss of trust and presents a constructive response to it for family offices and their clients: Create standards for investing that can help avoid a re-occurrence of recent events.
Managed futures, as an asset class, has several inherently beneficial attributes that are often unavailable in other types of alternative investments. This paper examines those attributes – liquidity, non-directionality, non-correlation, cash efficiency, transparency and diversification – and their relevance to investors of substantial means.
Meeting significant charitable goals efficiently creates a disproportionate need for the characteristics inherent in liquid, public securities. Increasing the allocation to liquid asset classes from 29% to 75% on a tax-managed basis can generate comparable returns to the endowment model after taxes while maintaining the flexibility needed to handle...
The underlying TALF investment thesis is compelling, but for many individuals the return potential may be too small given the illiquidity and leverage. This paper examines the pros and cons of TALF investments, enabling individuals to make an informed decision about whether this particular investment opportunity is right for them.
Once an initial portfolio has been constructed, it is critical that the asset allocation be monitored and rebalanced in a systematic and disciplined manner. Systematic rebalancing not only helps maintain a consistent and appropriate level of risk but, in many cases, also may enhance the return of a portfolio.
When stocks are volatile and bonds offer historically low yields, investors may seek to generate positive returns by investing in assets that are either driving inflation or offer protection during turbulent economic times. These real assets have historically outperformed stocks and bonds during periods of accelerating inflation and provided additi...
Post-crisis core portfolios may benefit from some revisions to traditional asset allocation. Each potential component of the new core (hedged equity, global fixed income and risk-managed alternatives) includes an enhancement that may offer greater risk management better suited to today's environment.
One of the newest types of funds specializes in replicating the beta of hedge funds, a traditionally non-correlated asset class. By seeking to replicate the beta of the broad universe of hedge funds, these funds can bring a level of non-correlated returns to any portfolio allocation.
Structured notes essentially replicate two types of financial instruments: zero-coupon bond and option(s). As a result, in the creation of structured notes, such financial instruments, their costs and several other factors contribute to the overall pricing of the notes.