The broad trend of fiduciaries pursuing the lowest cost passively managed investment options will likely temper plans sponsors’ interest in adding private equity investments, sources say.
It is common to hear that private equity (PE) has been the best performing asset class in recent years for institutional investors, but a new academic analysis challenges that idea.
An Information Letter addresses private equity investments as a component of a professionally managed asset allocation fund and outlines what plan fiduciaries should consider.
IHS Markit adds MSCI ESG ratings and HarbourVest offers private equity with Vanguard.
From an operating perspective, plans can use private investments in a multi-asset class investment vehicle.
An ever-greater proportion of the wealth being generated by the U.S. and global economies is locked away in private equity markets.
The research paper not only illustrates potential return characteristics and diversification benefits, but also offers allocation strategies to guide investment decision making.
Investors must rethink “safe havens” in their portfolio now that bonds simply can’t offer the same combination of portfolio protection and positive income.
They also foresee continued volatility in the stock market, but are turning to active management and alternative strategies to mitigate its risk.
Broadly speaking, Northern Trust’s Capital Market Assumptions Working Group expects continued global economic growth, controlled inflation and accommodative monetary policy.
Institutional investors’ interest in mid-market corporate direct lending is driving large capital flows into a squeezed portion of the market, according to Willis Towers Watson, resulting in downward pressure on returns and greater risk.
More advisers are turning to alternatives, according to a report from BNY Mellon | Pershing.