China A-Shares: Issues for Investors to Address
View PDF It is no secret that China is becoming an important market for global investors. Major index providers are increasing the proportion and types of Chinese shares in their indices, and investment managers are launching strategies to take advantage of this growing market. With the inclusion of China A-shares (i.e., ownership stakes in Chinese […]
Dragnets of Due Diligence
The often mundane jobs of compliance officers and forensic auditors just got more exciting. Effective Oct. 1, 2017, investment advisers registered with the Securities and Exchange Commission (SEC), with few exceptions, must use a newly expanded Form ADV to report on their businesses. With these changes, this document has become an even more valuable tool for investors and fiduciaries seeking to evaluate their advisers.
Our Take on Cryptocurrencies
We at Callan—like you—have been following the development of cryptocurrencies with great interest, as investors are understandably excited by bright, shiny objects with excess return potential.
NCREIF Property Index Chugs Along; REITs Hit Hard
The NCREIF Property Index gained 1.7% during the first quarter (1.1% from income and 0.6% from appreciation). This marked the 33rd consecutive quarter of positive returns for the Index. Industrial (+3.3%) was the best-performing sector for the eighth consecutive quarter with Office (+1.8%) and Apartments (+1.5%) also posting strong returns; Retail (+0.7%) was the worst […]
Boy – That Escalated Quickly!
The market narrative of strong corporate earnings, falling unemployment, and tax reform had pumped up expectations for risk assets heading into 2018. However, hints that an overheated U.S. economy may be unable to absorb significant fiscal stimulus ahead spooked markets in the first quarter, leading to a spasm of risk-off behaviors. Despite the quarter’s rocky […]
Year in Review: Private Market Activity Maintains Strong Pace
View PDF In 2017, U.S. equity assets appreciated for the ninth straight year: The tax reform legislation passed by Congress fueled positive sentiment about future economic fundamentals, while the markets shrugged off Fed rate hikes. In the private equity market, company investments and exits trended strongly up during the year for buyouts, with venture capital […]
A Tool to Stay on Top of Private Equity Fundraising
Because general partners only raise funds every three to four years, it is essential for institutional investors to stay ahead of private equity fundraising activity. Especially with the accelerated pace of fundraising in today’s market environment, it is easy to overlook a potential investment opportunity. To manage this process more effectively, Callan has developed what […]
Vexing Volatility
Market volatility spiked in February, coinciding with declines for broad equity and fixed income indices. Callan surveyed leading multi-asset class (MAC) strategy providers to understand how the products reacted in this newly volatile environment.
MLPs Keep Tax-Favored Status Under New Law
Despite some concerns about preliminary versions of the tax overhaul bill last year, investors in master limited partnerships (MLPs) fared well at the end. Under the old and new tax code, the pass-through nature of MLPs protects investors from double taxation; income is only taxed at the investor’s individual tax rate. The new tax law […]
Risk Takers See Less as More
While raw equity beta surged, hedge funds experienced positive but more modest results. Representing a paper portfolio of hedge fund interests without implementation costs, the Credit Suisse Hedge Fund Index (CS HFI) rose 2.3% in the fourth quarter. The median manager in the Callan Hedge Fund-of-Funds Database advanced 1.5%, net of all fees and expenses.