Long-term Capital Market Assumptions
|
|
- Dorothy Kennedy
- 6 years ago
- Views:
Transcription
1 Long-term Capital Market Assumptions December 9, 2010 Stu Schweitzer, Global Markets Strategist , Tony Werley, Head of Portfolio Construction ,
2 J.P. Morgan view: Moderate growth to send shares and interest rates higher over time The global economy is expected to experience subpar (although possibly improved) growth for a while to come. But the growth shortfall will likely give way to much better conditions over time Inflation is expected to remain subdued in the near term but ultimately to rebound considerably, propelled by policy stimulus, higher service-sector costs and higher commodity prices. Expected average inflation rates have been lowered only marginally Globalization is expected to allow Western companies to improve revenue growth while also keeping them under pressure to continue to cut costs. Corporate profits are expected to continue to outperform home-country economic growth Bond yields are likely to rise considerably from today s levels, although not for a while. Fixed income returns are likely to be hurt as yields rise toward expected higher equilibrium levels Equity returns are likely to benefit from positive surprises over time relative to the widespread pessimism that prevails today. Emerging markets are likely to remain top performers The outlook for real estate returns remains favorable, reflecting the current depressed level of property prices and the likelihood of improved operating fundamentals Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 1
3 Revised long-term forecasts in context Compound annualized returns (USD terms) * Last year's projection This year's revised projection Per rcent S&P 500 EAFE EM Equity U.S. Aggregate Fixed Income U.S. High Yield Bonds Source: Bloomberg, MSCI, LehmanLive, J.P. Morgan * As of November-end The charts and/or graphs shown above and throughout the presentation are for illustration and discussion purposes only. Past performance is not indicative future returns. 2
4 Return methodology Fixed income return equilibrium yield +/- change in bond prices Equity return inflation + real earnings growth + dividend yield +/- impact of valuation changes Alternative asset returns historical return drivers adjusted for the relationship to public markets 3
5 U.S. household balance sheets were dealt a staggering blow in the past few years Household assets and liabilities f disposable income (%) 4-quarter change as a percent of 100% Household Assets Household Liabilities 50% 0% 0-50% -100% -150% Source: Federal Reserve, J.P. Morgan. As of Q Past performance is no guarantee of future results 4
6 Fiscal austerity in peripheral Europe, without currency devaluation as an option, is very difficult Real GDP Index, 100 = Q Past European currency devaluations during fiscal adjustments Devaluations in USD Q08 3Q08 1Q09 3Q09 1Q10 Germany, France Portugal, Ireland, Spain, Greece Pe ercent ITA '75 -'76 POR '76 - '85 DEN '80 - '85 IRL '80 - '85 ESP '81 - '85 BEL '81 - '85 GRE '81 - '85 ITA '92 - '94 GBR '92 - '93 FIN '92 - '93 SWE '92 - '94 AUT '95 - '00 FRA '98 - '00 Source: National sources, J.P. Morgan. As of Q Past performance is no guarantee of future results 5
7 Japan continues to lag in efficiency and profitability Labor productivity Index, 100 = Calendar Year United States Corporate profits Indexes, 100 = Q United States Japan Japan Source: Bureau of Economic Analysis, Bureau of Labor Statistics, ESRI, J.P. Morgan. As of Q Past performance is no guarantee of future results 6
8 Emerging markets: Comparatively strong growth fundamentals Emerging vs. developed economies GDP levels Index,100 = Q Emerging economies Global consumption share Proportion of consumer spending 40% % United States Emerging markets rcent 110 Per 30% Developed economies 25% % Source: J.P. Morgan Securities LLC. As of Q Past performance is no guarantee of future results Source: J.P. Morgan Securities. As of Q
9 The U.S. dollar is cheap, but not unprecedentedly so. But beware of easy conclusions about the outlook for the Greenback Real trade-weighted U.S. dollar index Index, 2000 = Source: J.P. Morgan. Data as of October 21, 2010 Past performance is no guarantee of future results 8
10 History suggests a risk of renewed inflation after the current slump U.S. consumer prices 10 inflation rates (%) Annualized 10 year Sources: U.S. Bureau of Labor Statistics, Robert J. Shiller ( Irrational Exuberance, Princeton University Press, 2005), J.P Morgan. Data as of October Past performance is no guarantee of future results. 9
11 Commodities might start the inflationary process, but they won t necessarily feed through to core prices Consumer vs. commodity price inflation Core CPI inflation 20 Core CPI CRB All Commodities Spot Index (right axis) Commodity inflation Source: U.S. Bureau of Labor Statistics, Bloomberg, J.P Morgan. Data as of October Core inflation equals Consumer price inflation excluding food and energy Past performance is no guarantee of future results. 10
12 The pressure to cut costs to persist for a long while to come Hourly compensation costs for production workers $ U.S Norway Denmark Sweden Euro Area Australia U.K. Canada U.S. Japan Korea Singapore Hungary Taiwan Brazil Hong Kong Mexico China Philippines Vietnam Source: Bureau of Labor Statistics, Empirical Research Partners. J.P. Morgan. United States and China as of 2009 other countries as of 2007 or Euro Area includes Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. 11
13 Interest rates likely to be the deciding factor Interest rates vs. inflation 20 Core CPI Fed Funds 10-yr Treasuries 18 Percent change vs. year ago Source: U.S. Bureau of Labor Statistics, Federal Reserve, J.P Morgan. Data as of October 2010 Past performance is no guarantee of future results. 12
14 Developed market economic outlook Compound year growth and inflation United States (%) Headline inflation 3.00 Core inflation 2.50 GDP 2.50 Europe (%) Headline inflation 2.00 Core inflation 1.75 GDP 1.50 U.K. (%) Japan (%) Headline inflation 2.75 Core inflation 2.25 GDP 2.00 Headline inflation 0.75 Core inflation 0.50 GDP 1.00 Source: J.P. Morgan Asset Management estimates The assumption chart is for illustrative purposes only. This chart should not be relied upon as a recommendation to buy or sell securities. Forecasts of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. References to specific asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as recommendations. 13
15 Fixed income Equilibrium fixed income assumptions Current yield (%)* Equilibrium yield (%) Return (%) U.S. Core Inflation U.S. Cash U.S. Municipal bonds U.S. Government bonds U.S. 10-yr Treasury U.S. TIPS (real yield) U.S. Corporate bonds U.S. High Yield bonds Non-U.S. WGBI (USD) Emerging Market debt (USD) Local Sovereign EM debt (USD) Corporate EM debt (USD) U.S. inflation Low nearer term inflation given economic slack; inflation may rise as economy recovers headline inflation expected to outstrip core U.S. fixed income higher rates and subdued spreads central banks likely to keep real policy rates close to zero government bond yields should rise from historic lows credit spreads close to equilibrium Non-U.S. fixed income relatively low developed world government bond returns with boost from currency EMD spreads close to equilibrium Source: J.P. Morgan Asset Management estimates. Equilibrium fixed income yields have been rounded to the nearest 25 bps. * As of November 30, Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 14
16 Credit spreads still look attractive, but far less so than in recent years Corporate debt spreads High yield debt spreads 2,000 1,800 1,600 1,400 Basis points Basis points 1,200 1, Source: Barclays Capital, J.P. Morgan. Data as of November 19, Source: Barclays Capital, J.P. Morgan. Data as of November 19,
17 Equity Compound (IRR) year returns Equity returns (%) U.S. Core Inflation U.S. GDP U.S. large cap U.S. small cap EAFE (USD) 7.25 Europe ex-u.k. (local) 7.75 Japan (local) 4.50 U.K. (local) 8.00 U.S. equity EPS growth slightly above nominal GDP small rise in dividend yields from current levels valuations unlikely to rise materially given uncertainties over deleveraging and future price inflation Non-U.S. equity Europe, Japan, U.K. EPS growth above nominal GDP deflationary pressures likely to persist in Japan, limiting nominal returns emerging markets likely to outperform developed Canada (local) EME (USD) Source: J.P. Morgan Asset Management estimates Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 16
18 Equities still appear historically cheap, especially relative to bonds Compound (IRR) year returns U.S. equity risk premium Estimated Dividend Discount Rate minus corporate bond yield market bottom market bottom Perce ent Source: J.P. Morgan. Data as of November A dividend discount rate (DDR) is the discount rate which equates the present value of the estimated stream of future dividends to the current market price. The J.P. Morgan DDR is a bottom-up, sector-neutral and capitalization weighted average of dividend discount rates (DDRs) on large-capitalization stocks as estimated by J.P. Morgan Asset Management equity research analysts. A DDR does not represent a stock's expected actual return in any given time period. Bond yield used in the risk premium calculation is average yield on A and Baa rated long-term corporate bonds. Past performance is no guarantee of future results. 17
19 The global not domestic economy is the key influence on U.S. and European corporate revenue growth United States Annual growth rate Q2 2010E Euro Area Annual growth rate Q Perc cent Perc cent S&P 500 Core Revenues World GDP U.S. GDP 0 Euro Area Core Revenues World GDP Euro Area GDP Source: Standard & Poor's, U.S. Department of Commerce, International Monetary Fund, Corporate Reports, Empirical Research Partners, J.P. Morgan. Core revenue excludes energy, financials and utilities. Source: Eurostat, International Monetary Fund, Corporate Reports, Empirical Research Partners, J.P. Morgan. Core revenues exclude energy, industrial commodities, financials and utilities. 18
20 U.S. equity building blocks Equity return components Expected total return = 7.75% Valuation impact: Zero Dividend yield: 2.50% Real earnings growth: 2.75% Inflation (core): 2.50% Valuations still slightly below historical averages, but unlikely to rise materially given uncertainties over deleveraging and future price inflation Moderate increase in preference for dividend payouts as companies remain conservative over investment and hiring outlays Earnings growth slightly above nominal GDP as companies maintain cost discipline and continue to benefit from foreign-sourced revenues Low inflation in the nearer term, but nearzero real rates and eventual economic recovery mean upside risk in the longer-term Source: J.P. Morgan Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 19
21 Real assets U.S. dollar-based assumptions. Compound (IRR) year returns Real assets (%) REITs 6.50 REIT returns slight shortfall versus direct real estate, given less attractive valuation after price run-up U.S. direct real estate (unlevered) U.S. value added real estate European direct real estate (unlevered, local) Global Infrastructure Commodities Real estate and infrastructure returns typically less than equity, more than fixed income but U.S. property valuations remain depressed value added boosted by acquisition expertise European property slightly boosted by lower liquidity, but valuations are less attractive Infrastructure likely to benefit from exposure to regulated utilities and leverage Commodities returns in line with global nominal GDP Source: J.P. Morgan Asset Management estimates Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 20
22 Alternative assets U.S. dollar-based assumptions. Compound (IRR) year returns Alternative assets* (%) Private equity 8.25 Hedge funds Event Driven 7.00 Long Bias 7.50 Relative Value 5.00 Macro 7.50 Diversified 6.25 Private equity returns industry medians slight premium to large cap public markets expect wide differentials between managers Hedge fund returns industry medians Event Driven: expected returns between equities and credit Long Bias: expected to return a small discount to global equities Relative Value: expected to return a premium to global bonds Macro: derived from risk-taking in global equity, fixed income, commodities, and currency Diversified: expected returns are a blend of global equity and fixed income betas expect wide performance differential Source: J.P. Morgan Asset Management estimates * Industry medians Private Equity and Hedge Funds are unlike other asset classes shown above, in that there is no underlying investible index. The return estimates shown above for these assets are our estimates of industry medians; the dispersion of returns among different managers in these asset classes is typically far wider than in traditional assets. Given the complex risk-reward tradeoff in these assets, we counsel clients to rely on judgment rather than quantitative optimization approaches in setting strategic allocations to these asset classes. Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 21
23 A market-driven approach to projecting hedge fund returns HFRI Equity Long Bias hedge fund returns and factor description for July 2005 to June 2010 Factors contributing to equity long bias returns Risk taking volatility contribution (%) Jul-05 U.S. Equities Int'l Equities Commodities Volatility Credit Governments Cash FX Manager Actual monthly HFRI returns plotted with the combined returns of its market exposures as identified by the Factor Model 8 HFRI Equity Hedge Returns Expected Factor Returns Percent Sep-05 Nov-05 R 2 = 98% Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Source: Hedge Fund Research, J.P. Morgan. Past performance is no guarantee of future results. It is not possible to invest directly in an index. 22
24 Concluding comments Economic recovery likely to remain intact, but multi-year deleveraging in the developed world to keep global growth below prior trend rates; markets may deliver only moderate overall returns Today s high levels of spare economic capacity are likely to persist for years, keeping inflation and interest rates low, but aggressive central bank stimulus should eventually push inflation and yields higher as conditions in the global economy normalize Emerging economies should remain on a strong secular growth trend, with emerging markets outpacing developed markets by a wide margin Alternative investments and real assets important for their diversification benefits, ability to capitalize on distressed opportunities and lower susceptibility to the volatility of traditional risk assets It is near-impossible for quantitative optimization techniques to arrive at recommended portfolios that account for asset liquidity or illiquidity and its impact on real-world investment results. There is no substitute for judgment Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Diversification does not guarantee investment returns and does not eliminate the risk of loss. 23
25 Important information Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Note: Given the complex risk-reward trade-offs involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations to all the above asset classes. Please note that all information shown is based on qualitative analysis. Exclusive reliance on the above is not advised. This information is not intended as a recommendation to invest in any particular asset class or as a promise of future performance. Note that these asset class assumptions are passive only they do not consider the impact of active management. References to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio may achieve. J.P. Morgan Asset Management Long-term Capital Market Return Assumptions are developed each year by our Assumptions Committee, a multi-asset class team of senior investors from across the firm. The Committee relies on the input and expertise of a range of portfolio managers and product specialists, striving to ensure that the analysis is consistent across asset classes. The final step in the process is a rigorous review of the proposed assumptions and their underlying rationale with the senior management of J.P. Morgan Asset Management. Our capital market assumptions are used widely by institutional investors including pension plans, insurance companies, endowments and foundations to ensure that investment policies and decisions are based on real-world, consistent views and can be tested under a variety of market scenarios. Assumptions, opinions and estimates are provided for illustrative purposes only. They should not be relied upon as recommendations to buy or sell securities. Forecasts of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Inc. and J.P. Morgan Alternative Asset Management Inc. Copyright 2009 JPMorgan Chase & Co. Copyright 2010 JPMorgan Chase & Co. 24
26 Questions and answers We are ready to take your questions now To ask a question by phone Press *1 on your touchtone keypad To retract your question, press *2 To ask a question online Select Q&A from the menu bar in the upper left-hand side of your screen» Ask To retract your question, select the X For a copy of today s presentation Contact your J.P. Morgan representative, or Select the Printer button located in the toolbar in the bottom right-hand side of your screen 25
27 Thank you 26
28 27
DFA Global Equity Portfolio (Class F) Quarterly Performance Report Q2 2014
DFA Global Equity Portfolio (Class F) Quarterly Performance Report Q2 2014 This presentation has been prepared by Dimensional Fund Advisors Canada ULC ( DFA Canada ), manager of the Dimensional Funds.
More informationDFA Global Equity Portfolio (Class F) Performance Report Q2 2017
DFA Global Equity Portfolio (Class F) Performance Report Q2 2017 This presentation has been prepared by Dimensional Fund Advisors Canada ULC ( DFA Canada ), manager of the Dimensional Funds. This presentation
More informationDFA Global Equity Portfolio (Class F) Performance Report Q3 2018
DFA Global Equity Portfolio (Class F) Performance Report Q3 2018 This presentation has been prepared by Dimensional Fund Advisors Canada ULC ( DFA Canada ), manager of the Dimensional Funds. This presentation
More informationDFA Global Equity Portfolio (Class F) Performance Report Q4 2017
DFA Global Equity Portfolio (Class F) Performance Report Q4 2017 This presentation has been prepared by Dimensional Fund Advisors Canada ULC ( DFA Canada ), manager of the Dimensional Funds. This presentation
More informationDFA Global Equity Portfolio (Class F) Performance Report Q3 2015
DFA Global Equity Portfolio (Class F) Performance Report Q3 2015 This presentation has been prepared by Dimensional Fund Advisors Canada ULC ( DFA Canada ), manager of the Dimensional Funds. This presentation
More informationAll-Country Equity Allocator July 2018
Leila Heckman, Ph.D. lheckman@dcmadvisors.com 917-386-6261 John Mullin, Ph.D. jmullin@dcmadvisors.com 917-386-6262 Allison Hay ahay@dcmadvisors.com 917-386-6264 All-Country Equity Allocator July 2018 A
More informationQuarterly Investment Update First Quarter 2017
Quarterly Investment Update First Quarter 2017 Market Update: A Quarter in Review March 31, 2017 CANADIAN STOCKS INTERNATIONAL STOCKS Large Cap Small Cap Growth Value Large Cap Small Cap Growth Value Emerging
More informationSan Francisco Retiree Health Care Trust Fund Education Materials on Public Equity
M E K E T A I N V E S T M E N T G R O U P 5796 ARMADA DRIVE SUITE 110 CARLSBAD CA 92008 760 795 3450 fax 760 795 3445 www.meketagroup.com The Global Equity Opportunity Set MSCI All Country World 1 Index
More informationAll-Country Equity Allocator February 2018
Leila Heckman, Ph.D. lheckman@dcmadvisors.com 917-386-6261 John Mullin, Ph.D. jmullin@dcmadvisors.com 917-386-6262 Charles Waters cwaters@dcmadvisors.com 917-386-6264 All-Country Equity Allocator February
More informationSummit Strategies Group
April 0, 205 US Equity: All Cap Russell 000 Index 0.45 5.9 2.26 2.74 6.86 4. 8.68 8.66 Dow Jones US Total Stock Market Index 0.46 5.9 2.27 2.67 6.78 4.7 8.78 8.8 US Equity: Large Cap Russell 000 Index
More informationQuarterly Investment Update First Quarter 2018
Quarterly Investment Update First Quarter 2018 Dimensional Fund Advisors Canada ULC ( DFA Canada ) is not affiliated with [insert name of Advisor]. DFA Canada is a separate and distinct company. Market
More informationQuarterly Market Review. First Quarter 2015
Q1 Quarterly Market Review First Quarter 2015 Quarterly Market Review First Quarter 2015 This report features world capital market performance and a timeline of events for the past quarter. It begins with
More informationSummit Strategies Group
As of December 3, 203 US Equity: All Cap Russell 3000 Index 2.64 0.0 33.55 33.55 6.24 8.7 6.50 7.88 7.09 Dow Jones US Total Stock Market Index 2.63 0. 33.47 33.47 6.23 8.86 6.68 8.0 6.90 US Equity: Large
More informationINVESTMENT MARKET UPDATE UBC FACULTY PENSION PLAN
INVESTMENT MARKET UPDATE UBC FACULTY PENSION PLAN MIKE LESLIE, FACULTY PENSION PLAN NEIL WATSON, LEITH WHEELER FEBRUARY 12, 2014 Presenters Mike Leslie Executive Director, Investments Faculty Pension Plan
More informationINVESTMENT MARKET UPDATE UBC FACULTY PENSION PLAN
INVESTMENT MARKET UPDATE UBC FACULTY PENSION PLAN MIKE LESLIE, FACULTY PENSION PLAN NEIL WATSON, LEITH WHEELER FEBRUARY 11, 2015 Presenters Mike Leslie Executive Director, Investments Faculty Pension Plan
More informationSummit Strategies Group
October, 208 US Equity: All Cap Russell 000 Index -7.6 -.95 2.4 6.60.27 0.8.8.5 Dow Jones US Total Stock Market Index -7.4-4.04 2.9 6.56.24 0.76.75.6 US Equity: Large Cap Russell 000 Index -7.08 -.5 2.67
More informationSummit Strategies Group
May, 208 US Equity: All Cap Russell 000 Index 2.82.4 2.55 5.06 0.72 2.85 2.6 9.2 Dow Jones US Total Stock Market Index 2.8.5 2.57 5.09 0.68 2.78 2.58 9.27 US Equity: Large Cap Russell 000 Index 2.55 0.57
More informationSummit Strategies Group
June 0, 208 US Equity: All Cap Russell 000 Index 0.65.89.22 4.78.58.29.0 0.2 Dow Jones US Total Stock Market Index 0.66.87.25 4.79.56.22 2.98 0.28 US Equity: Large Cap Russell 000 Index 0.65.57 2.85 4.54.64.7.2
More informationSummit Strategies Group
August, 208 US Equity: All Cap Russell 000 Index.5 7.65 0.9 20.25 5.86 4.25 5.50 0.89 Dow Jones US Total Stock Market Index.48 7.64 0.4 20.26 5.82 4.2 5.45 0.94 US Equity: Large Cap Russell 000 Index.45
More informationSummit Strategies Group
October, 208 US Equity: All Cap Russell 000 Index -7.6 -.95 2.4 6.60.27 0.8.8.5 Dow Jones US Total Stock Market Index -7.4-4.04 2.9 6.56.24 0.76.75.6 US Equity: Large Cap Russell 000 Index -7.08 -.5 2.67
More informationAlternatives Investments: Striking the Balance Between Growth Tomorrow and Liquidity Today
Alternatives Investments: Striking the Balance Between Growth Tomorrow and Liquidity Today NCPERS Annual Conference Session Dr. Ben Meng Senior Portfolio Manager and Head of Asset Allocation, California
More informationWells Fargo Target Date Funds
All information is as of 9-30-17 unless otherwise indicated. Overview General fund information Portfolio managers: Kandarp Acharya, CFA, FRM; Christian Chan, CFA; and Petros Bocray, CFA, FRM Subadvisor:
More informationSummit Strategies Group
US Equity: All Cap Russell 000 Index -.69 2.40.9 6.22 0.59 4.7 2.79 9.78 Dow Jones US Total Stock Market Index -.70 2.4.4 6.2 0.55 4.2 2.76 9.8 US Equity: Large Cap Russell 000 Index -.67 2.75.62 6.70
More informationSummit Strategies Group
US Equity: All Cap Russell 000 Index.72 7.7 5.67 26.29 9.92.85.87 7.64 Dow Jones US Total Stock Market Index - - - - - - - - US Equity: Large Cap Russell 000 Index.87 7.95 5.96 25.5 0.9.94.9 7.69 Russell
More informationMarket Review and Outlook. Todd Centurino, CFA
Market Review and Outlook Todd Centurino, CFA Q1 2017 Global Economy: On the Upswing Ranked Returns (%) Emerging Market Equities 11.40 European Equities 7.40 US Equities 6.10 Global Bonds 2.00 US Treasuries
More informationSEE macroeconomic outlook Recovery gains traction, fiscal discipline improving. Alen Kovac, Chief Economist EBC May 2016 Ljubljana
SEE macroeconomic outlook Recovery gains traction, fiscal discipline improving Alen Kovac, Chief Economist EBC May 216 Ljubljana Real economy highlights Recent GDP track record reveals more favorable footprint
More informationDIVERSIFICATION. Diversification
Diversification Helps you capture what global markets offer Reduces risks that have no expected return May prevent you from missing opportunity Smooths out some of the bumps Helps take the guesswork out
More informationQ2 Quarterly Market Review Second Quarter 2015
Q2 Quarterly Market Review Second Quarter 2015 Quarterly Market Review Second Quarter 2015 This report features world capital market performance and a timeline of events for the past quarter. It begins
More informationIOOF. International Equities Portfolio NZD. Quarterly update
IOOF NZD Quarterly update For the period ended 30 September 2018 Contents Overview 2 Portfolio at glance 3 Performance 4 Asset allocation 6 Overview At IOOF, we have been helping Australians secure their
More informationThe Current and Long- Term Case for Overseas Investing
The Current and Long- Term Case for Overseas Investing Q1 2017 TP666 Bank of America Corporation ( Bank of America ) is a financial holding company that, through its subsidiaries and affiliated companies,
More informationInvesting in a Time of (Financial) Repression. Cyril Moullé-Berteaux, Head of Global Asset Allocation
Investing in a Time of (Financial) Repression Cyril Moullé-Berteaux, Head of Global Asset Allocation Overview Positioning for the long-term The growing Yield Bubble Europe outperformance may just be starting
More informationThe role of inflation-linked bonds. September 2004
The role of inflation-linked bonds September 2004 Table of contents Who we are & our experience Inflation linked bonds: characteristics Performance and risks Applications in a portfolio Simulations and
More informationTracking the Growth Catalysts in Emerging Markets
Tracking the Growth Catalysts in Emerging Markets September 14, 2016 by Nick Niziolek of Calamos Investments The following is an excerpt of remarks made on August 30, 2016. The majority of the improved
More informationGlobal Select International Select International Select Hedged Emerging Market Select
International Exchange Traded Fund (ETF) Managed Strategies ETFs provide investors a liquid, transparent, and low-cost avenue to equities around the world. Our research has shown that individual country
More informationWells Fargo Target Date CITs E3
All information is as of 12-31-17 unless otherwise indicated. Overview General fund information Fund sponsor and manager: Wells Fargo Bank, N.A. Fund advisor: Wells Capital Management Inc. Portfolio manager:
More informationVantage Investment Partners. Quarterly Market Review
Vantage Investment Partners Quarterly Market Review First Quarter 2016 Quarterly Market Review First Quarter 2016 This report features world capital market performance and a timeline of events for the
More informationThe role of fixed income and the missing middle J.P. Morgan Asset Management
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION The role of fixed income and the missing middle J.P. Morgan Asset Management Sorca Kelly Scholte Managing Director
More informationGlobal Equity Strategy Report
Global Investment Strategy Global Equity Strategy Report April 26, 2017 Stuart Freeman, CFA Co-Head of Global Equity Strategy Scott Wren Senior Global Equity Strategist Analysis and outlook for the equity
More informationPRESENTATION BY JACOB A. FRENKEL AT THE FORUM: INTELLIGENCE ON THE WORLD, EUROPE, AND ITALY. Villa d'este, Cernobbio - September 7, 8 and 9, 2012
PRESENTATION BY JACOB A. FRENKEL AT THE FORUM: INTELLIGENCE ON THE WORLD, EUROPE, AND ITALY Villa d'este, Cernobbio - September 7, 8 and 9, 1 Working paper, September 1. Kindly authorized by the Author.
More informationNORTH AMERICAN UPDATE
NORTH AMERICAN UPDATE December 6 th, 2018 INNOVATION INSIGHT GROWTH SINCE 1968 TOUGH YEAR FOR RETURNS AROUND THE WORLD Index Year-to-date Performance MSCI World -1.2% MSCI USA 3.9% MSCI Canada -3.9% MSCI
More informationEconomic Outlook In the Shoes of an FOMC Member
Economic Outlook In the Shoes of an FOMC Member This material must be read in conjunction with the disclosure statement. 9 April 2018 PRESENTED BY: MARKUS SCHOMER Chief Economist PineBridge Investments
More information40% 30% 24.1% 25.4% 23.2% 22.8% 10% 10%
WisdomTree Dynamic Currency Hedged International Equity Fund DDWM A NEW CHAPTER: DYNAMIC CURRENCY-HEDGED EQUITIES Approximately 50% of the world s equity opportunity set is outside of the United States,
More informationGlobal Investment Outlook Russ Koesterich, CFA Managing Director, Global Allocation
Global Investment Outlook Russ Koesterich, CFA Managing Director, Global Allocation 6 Asset performance YTD Source: Thomson Reuters Datastream, BlackRock Investment Institute. Apr, 6 Note: Total return
More informationFreedom Quarterly Market Commentary // 2Q 2018
ASSET MANAGEMENT SERVICES Freedom Quarterly Market Commentary // 2Q 2018 SECOND QUARTER HIGHLIGHTS U.S. economic growth and earnings lead the world The value of the dollar rises, affecting currency exchange
More informationQuarterly Investment Update
Quarterly Investment Update Second Quarter 2017 Dimensional Fund Advisors Canada ULC ( DFA Canada ) is not affiliated with The CM Group DFA Canada is a separate and distinct company Market Update: A Quarter
More informationRebalancing International Equities: What to Know. What to Consider.
Success Should Not Be Cyclical Perspective Rebalancing International Equities: What to Know. What to Consider. Executive Summary Diversified investors may be frustrated by the underperformance of their
More informationOUTLOOK 2014/2015. BMO Asset Management Inc.
OUTLOOK 2014/2015 BMO Asset Management Inc. We would like to take this opportunity to provide our capital markets outlook for the remainder of 2014 and the first half of 2015 and our recommended asset
More informationJPMorgan Europe Strategic Dividend Fund
AVAILABLE FOR PUBLIC CIRCULATION NEW JPMorgan Europe Strategic Dividend Fund Asset Management Company of the Year, Asia + Important information 1. The Fund invests at least 70% in equity securities of
More informationTable 1: Foreign exchange turnover: Summary of surveys Billions of U.S. dollars. Number of business days
Table 1: Foreign exchange turnover: Summary of surveys Billions of U.S. dollars Total turnover Number of business days Average daily turnover change 1983 103.2 20 5.2 1986 191.2 20 9.6 84.6 1989 299.9
More informationMarket Overview As of 1/31/2019
Asset Class Leadership Periodic Table Worst Best 78.51 58.21 41.45 37.21 34.47 27.45 26.46 20.58 19.69 29.09 27.58 2 18.88 16.71 15.51 15.12 15.06 11.15 7.84 7.28 4.98 2.64 2.11 0.39-2.91-5.50-13.71 20.14
More informationMarket Overview As of 4/30/2018
Asset Class Leadership Periodic Table Worst Best 5.24-26.16-28.92-36.85-37.00-37.34-38.44-38.54-45.53 78.51 58.21 41.45 37.21 34.47 27.45 26.46 20.58 19.69 29.09 27.58 24.50 18.88 16.71 15.51 15.12 15.06
More informationMarket Overview As of 11/30/2018
Asset Class Leadership Periodic Table Worst Best 5.24-26.16-28.92-36.85-37.00-37.34-38.44-38.54-45.53 78.51 58.21 41.45 37.21 34.47 27.45 26.46 20.58 19.69 29.09 27.58 24.50 18.88 16.71 15.51 15.12 15.06
More information1000G 1000G HY
Asset Class Leadership Periodic Table Worst Best 5.24-26.16-28.92-36.85-37.00-37.34-38.44-38.54-45.53 78.51 58.21 41.45 37.21 34.47 27.45 26.46 20.58 19.69 29.09 27.58 24.50 18.88 16.71 15.51 15.12 15.06
More informationINVESTMENT PERFORMANCE SURVEY OF CANADIAN INSTITUTIONAL POOLED FUNDS SUMMARY PERIOD ENDING 31 MARCH 2015
INVESTMENT PERFORMANCE SURVEY OF CANADIAN INSTITUTIONAL POOLED FUNDS SUMMARY PERIOD ENDING 31 MARCH 21 COMMENTARY Funded status of pension plans dips in first quarter The solvency position of Canadian
More informationMarket Overview As of 10/31/2017
Asset Class Leadership Periodic Table Worst Best 39.42 16.65 11.81 7.05 6.97 5.49 1.87-0.17-9.78 5.24-26.16-28.92-36.85-37.00-37.34-38.44-38.54-45.53 78.51 58.21 41.45 37.21 34.47 27.45 26.46 20.58 19.69
More informationMarket Overview As of 8/31/2017
Asset Class Leadership Periodic Table Worst Best 39.42 16.65 11.81 7.05 6.97 5.49 1.87-0.17-9.78 5.24-26.16-28.92-36.85-37.00-37.34-38.44-38.54-45.53 78.51 58.21 41.45 37.21 34.47 27.45 26.46 20.58 19.69
More informationQuarterly Market Review. Fourth Quarter 2015
Q4 Quarterly Market Review Fourth Quarter 2015 Quarterly Market Review Fourth Quarter 2015 This report features world capital market performance and a timeline of events for the past quarter. It begins
More informationThe Year of the Snake: Investing in a Rising Rate Environment
The Year of the Snake: Investing in a Rising Rate Environment Duncan W. Richardson, CFA Chief Equity Investment Officer 13 th February 2013 1 Inflation Deflation 2 Depressing Cycle 3 Source: Baseline as
More informationPIMCO Research Affiliates Equity (RAE) Fundamental
PIMCO Research Affiliates Equity (RAE) Fundamental Seek to get more from your equity allocation with a systematic strategy that captures the key benefits of a passive equity approach, with the potential
More informationPremium (Institutional Share Class) Simple. Performance.TM. Wellesley Hills Naples
Premium (Institutional Share Class) Simple. Performance.TM Wellesley Hills Naples Our investors seek relative outperformance in bull markets and absolute performance in bear markets. The BCM strategies
More informationBlackstone Alternative Alpha Fund (BAAF)
Blackstone Alternative Alpha Fund (BAAF) Blackstone For Accredited Investors Only As of February 29th, 2016 Investment approach Blackstone Alternative Alpha Fund ( BAAF or the Fund ) is a closed end registered
More informationBank of Canada Triennial Central Bank Survey of Foreign Exchange and Over-the-Counter (OTC) Derivatives Markets
Bank of Canada Triennial Central Bank Survey of Foreign Exchange and Over-the-Counter (OTC) Derivatives Markets Turnover for, and Amounts Outstanding as at June 30, March, 2005 Turnover data for, Table
More informationQuarterly Investment Update
Quarterly Investment Update Third Quarter 2017 Dimensional Fund Advisors Canada ULC ( DFA Canada ) is not affiliated with The CM Group DFA Canada is a separate and distinct company Market Update: A Quarter
More informationGlobal growth weakening as some risks materialise
OECD INTERIM ECONOMIC OUTLOOK Global growth weakening as some risks materialise 6 March 2019 Laurence Boone OECD Chief Economist http://www.oecd.org/eco/outlook/economic-outlook/ ECOSCOPE blog: oecdecoscope.wordpress.com
More informationJuly 2012 Chartbook The Halftime Report
Average Daily $VA LUE Traded ($Billions ) $Billions (212 ( US China Japan CHI-X London Hong Kong Germany France Canada Korea Australia Brazil Taiwan Spain India Italy $billions Switzerland Sweden Amsterdam
More informationEconomic and Market Outlook
Economic and Market Outlook Third Quarter 2018 Investment Products: Not FDIC Insured No Bank Guarantee May Lose Value Past performance is no guarantee of future results. Financial term and index definitions
More informationAn Unconstrained Approach to Generating Equity Income. Investment Focus
Investment Focus An Unconstrained Approach to Generating Equity Income The economic and capital market volatility in recent years has reduced the attractiveness of equities to many investors, and it has
More informationSummit Strategies Group 8182 Maryland Avenue, 6th Floor St. Louis, Missouri
Summit Strategies Group 8182 Maryland Avenue, 6th Floor St. Louis, Missouri 63105 314.727.7211 Quarterly Review Global Equity Market Update GLOBAL EQUITY MARKETS CALENDAR YEAR RETURNS 2002 2003 2004 2005
More informationEuropean Equities. A long-term perspective. The Long View. Europe vs. World ex Europe Europe ex UK vs. World ex Europe. Apr-01. Apr-97. Apr-95.
INSIGHTS European Equities A long-term perspective June 211 PLEASE VISIT jpmorgan.com/institutional for access to all of our Insights publications. European equities have outperformed the rest of the world
More informationQuarterly Update. Jessica Burbrink, CFP, CTFA. Clayton Bill, CFA. Kathy Clark. Andrew Heck, JD, CTFA, CFIRS
Quarterly Update Jessica Burbrink, CFP, CTFA Clayton Bill, CFA Kathy Clark Andrew Heck, JD, CTFA, CFIRS RATE OF RETURN (%) Capital markets PERIODS ENDING DECEMBER 2017 Capital Market Returns 40 37.3 30
More informationGlobal Investment Strategy Report
Global Investment Strategy Global Investment Strategy Report June 5, 2017 Tracie McMillion, CFA Head of Global Asset Allocation Strategy Weekly market insights from the Global Investment Strategy team»
More informationFOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS OF THE PRESS ONLY, NOT FOR FURTHER DISTRIBUTION.
2018 Global Market Outlook Press Briefing GLOBAL FIXED INCOME Mark Vaselkiv Portfolio Manager, CIO, Fixed Income November 14, 2017 FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED
More informationMarket volatility to continue
How much more? Renewed speculation that financial institutions may report increased US subprime-related losses has sent equity markets tumbling. How much more bad news can investors expect going forward?
More informationHigh Debt, Slow Growth, Financial Instability, Growing Inequality: What Role for Economic Policy?
High Debt, Slow Growth, Financial Instability, Growing Inequality: What Role for Economic Policy? Paul van den Noord Counsellor to the Chief Economist, OECD 1 Central projection growth, annualised, in
More informationMarket Bulletin. Earnings will set you free. October 20, In brief. The benefits of breadth
Market Bulletin October 20, 2017 Earnings will set you free In brief Healthy gains in global equity markets this year have been driven by a rebound in earnings growth, with the breadth of profit growth
More informationFourth Quarter 2015 Market Review. March 2016
Fourth Quarter 2015 Market Review March 2016 Agenda Market Review Investment Outlook and Portfolio Positioning 2 2015 was a Challenging Year for Investment Returns Last year was the first time since 2001
More informationMonthly Investment Perspectives. The Global Investment Committee March 2015
Monthly Investment Perspectives The Global Investment Committee March 2015 Our 2015 Thesis: The Great Rebalancing Act Tapering was tightening last year despite the rhetoric it was not. Dollar strength
More informationOutlook Overview: OECD Countries UN LINK Conference, Bangkok October, 2009
Outlook Overview: OECD Countries UN LINK Conference, Bangkok 26 28 October, 2009 Dave Turner OECD, Economics Department OECD Outlook: Outline 1. Recovery underway but will probably be slow 2. Risks and
More informationPast performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the
Q1 Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
More informationCapital Market Review
Capital Market Review September 3, 215 Percent Percent MARKET/ECONOMIC OVERVIEW Risk Reprices Rapidly 2,2 1,9 1,6 1,3 S&P 5 April 29, 211 to Oct 3, 211 157 Days -19.4% May 21, 215 to Sep 3, 215 132 Days
More informationNuance Mid Cap Value Fund (NMVLX)
Value Fund (NMVLX) Third Quarter Investment Objective The Value Fund seeks long term capital appreciation. The performance focus is on absolute return and Sharpe vs the Russell Midcap Value, primary benchmark,
More informationMarket Correlations: Trade-Weighted Dollar
Market Correlations: Trade-Weighted Dollar March 11, 218 Dr. Edward Yardeni 516-972-7683 eyardeni@ Joe Abbott 732-497-536 jabbott@ Mali Quintana 48-664-1333 aquintana@ Please visit our sites at www. blog.
More informationThe Disconnect Continues
The Disconnect Continues Richard Bernstein June 3, 2011 Our strategies focus on finding disconnects between investor sentiment and the reality of improvement or deterioration in fundamentals. The current
More informationBank of Canada Triennial Central Bank Surveys of Foreign Exchange and Over-the-Counter (OTC) Derivatives Markets Turnover for April, 2007 and Amounts
Bank of Canada Triennial Central Bank Surveys of Foreign Exchange and Over-the-Counter (OTC) Derivatives Markets Turnover for April, 2007 and Amounts Outstanding as at June 30, 2007 January 4, 2008 Table
More informationAsset Strategy Consultants. MARKET ENVIRONMENT First Quarter 2017
MARKET ENVIRONMENT First Quarter 2017 Market Environment: Economy Economies in the U.S. and Europe continued to gain traction. Expectations for lower taxes, reduced regulation, and other pro-growth reforms
More informationThe Realities of Diversification
The Realities of Diversification October 16, 2018 by Richard Bernstein of Richard Bernstein Advisors Insurance policies always carry a premium that must be paid to the insurer by the insured in exchange
More informationDecember 2014 FINANCIAL MARKET REVIEW
December 2014 FINANCIAL MARKET REVIEW Buena Vista Investment Management LLC 241 Third Street South Wisconsin Rapids, WI 54494 715-422-0700 http://buenavistainv.com December 2014 Why Portfolios Remain Diversified
More informationSHAMBLING FORWARD. 02/13/2014 WORLD POPULATION 2 WALL STREET, MAIN STREET, AND CAPITOL HILL: AN ECONOMIC UPDATE
SHAMBLING FORWARD. WALL STREET, MAIN STREET, AND CAPITOL HILL: AN ECONOMIC UPDATE Shamble: To walk in an awkward, lazy, or unsteady manner, shuffling the feet FEBRUARY 12, 2014 David B. Hanson, CPA, CFA
More informationWORKING TOGETHER Design Build Protect
WORKING TOGETHER Design Build Protect 2018 LWI Financial Inc. All rights reserved. LWI Financial Inc. ( Loring Ward ) is an investment adviser registered with the Securities and Exchange Commission. Securities
More informationFirst Quarter 2018 (as of December 31, 2017) The Factor Report. What s driving factor performance?
First Quarter 2018 (as of December 31, 2017) The Factor Report What s driving factor performance? Table of Contents Page Q4 Summary..................................................................................
More informationInvestment Research Team Update
Economic & Market Commentary Market Update February 2015 February was a great month for global stocks! The S&P 500 ( large cap stocks) was up 5.7% and small stocks (Russell 2000) gained 5.9%. The jobs
More informationToward A Bottom-Up Approach in Assessing Sovereign Default Risk
Toward A Bottom-Up Approach in Assessing Sovereign Default Risk Dr. Edward I. Altman Stern School of Business New York University Keynote Lecture Risk Day Conference MacQuarie University Sydney, Australia
More informationEurope Outlook. Third Quarter 2015
Europe Outlook Third Quarter 2015 Main messages 1 2 3 4 5 Moderation of global growth and slowdown in emerging economies, with downside risks The recovery continues in the eurozone, but still marked by
More informationEmerging Markets Debt: Outlook for the Asset Class
Emerging Markets Debt: Outlook for the Asset Class By Steffen Reichold Emerging Markets Economist May 2, 211 Emerging market debt has been one of the best performing asset classes in recent years due to
More informationWhen Debt Pushes Back
IN-D EPTH A NALYSIS OF THE FIXED I NCOME MARKETS George Rusnak, CFA Co-Head of Global Fixed Income Strategy When Debt Pushes Back February 22, 2018 Key takeaways» The rising U.S. federal debt burden now
More information2017 Asia and Pacific Regional Economic Outlook:
217 Asia and Pacific Regional Economic Outlook: Preparing for Choppy Seas Ranil Salgado International Monetary Fund Asia and Pacific Department May 12, 217 OAP Seminar Key messages and roadmap The near-term
More information749 Gateway Suite 501 Abilene, Texas nd Quarterly Review 2016
749 Gateway Suite 501 Abilene, Texas 79602 325-672-9230 www.compasstx.com 2 nd Quarterly Review 2016 Quarterly Market Review Second Quarter 2016 This report features world capital market performance and
More informationRETHINKING RISK & RETURNS 2017 MID-YEAR INVESTMENT OUTLOOK
RETHINKING RISK & RETURNS 2017 MID-YEAR INVESTMENT OUTLOOK BlackRock Investment Institute Kate Moore Chief Equity Strategist July 2017 FOR INSTITUTIONAL AND PROFESSIONAL INVESTOR USE ONLY NOT FOR PUBLIC
More informationDamn the End of QE! Buy the Dollar and Treasurys!
Damn the End of QE! Buy the Dollar and Treasurys! Dr. A. Gary Shilling President A. Gary Shilling & Company, Inc. A. Gary Shilling & Co., Inc. Economic Consultants Chart 1 Historic Inflation and Deflation
More informationB-GUIDE: Market Outlook
Quarterly Market Outlook: Quarter 1 2018 on 5 th January 2018 Investment Outlook for 1 st Quarter 2018 Accelerating Global Economy Supports the Rising Earnings Equity Thailand US Europe Japan Asia Bond
More information