Pandemic Reshapes the Outlook for Farmland Investments

View Newsletter There may never be another global event akin to the COVID-19 pandemic in our lifetimes that more clearly tests the investment thesis for farmland as a component of a diversified institutional investment portfolio. Investors make strategic allocations to farmland for its diversification potential, low correlation to more traditional asset classes, and inflation-hedging properties. […]

Private RE Returns Positive; Global REITs Underperform

View Newsletter Private real estate results positive due to income Initial impact of pandemic reflected in 1Q20 results Positive return due to income Industrial real estate performed well. Retail depreciation accelerated this quarter. The dispersion of returns by manager within the NCREIF ODCE Index was due not only to the composition of underlying portfolios but […]

Toughest Quarter Since GFC for Real Assets

Real asset returns were significantly challenged during the first quarter of 2020, March in particular, as almost the entire space (except gold and TIPS) experienced performance not seen since the Global Financial Crisis. The MLP space (Alerian MLP Index: -57%) and energy-related stocks (S&P 1200 Energy Index: -44%) were among the worst hit as Russia […]

Behind Our 2020-2029 Capital Market Assumptions

Callan develops long-term capital market assumptions at the start of each year, detailing our expectations for return, volatility, and correlation for broad asset classes. These projections represent our best thinking regarding a longer-term outlook and are critical for strategic planning as our investor clients set investment expectations over five-year, ten-year, and longer time horizons. Our […]

10 Questions to Address in Evaluating Infrastructure Managers

Read My Paper In my white paper, “Infrastructure: No Longer a Niche Option,” I discussed the characteristics of the infrastructure asset class, both listed and unlisted, and outlined the considerations that institutional investors need to weigh as they consider an allocation to this asset class or evaluate an existing one. In this blog post I provide additional […]

Mostly Strong Gains Amid Geopolitical Uncertainty

Equity Markets The S&P 500 gained 1.7% in the third quarter, and 20.6% for the year to date. However, returns were mixed across sectors. Utilities (+9.3%) and Real Estate (+7.7%) both benefited from lower interest rates. Gains for both sectors are approaching 30% on a year-to-date basis. Energy, hurt by falling oil prices, lost 6.3% […]

Stocks and Bonds Lifted by Rate Cut Optimism

In the wake of the Fed’s announcement of a new policy objective—to “sustain the expansion”—U.S. Treasury and stock markets approached record highs in the second quarter, and the 10-year U.S. Treasury yield hit a multi-year low. Equity Markets The S&P 500 Index rose 4.3%, bringing its year-to-date return to 18.5%. Financials (+8.0%) were the best […]

A Look at the Markets in 3Q18

U.S. stocks broadly rose, outpacing non-U.S. equities. Fixed income returns were muted, while real assets saw a wide range of results.

How Stocks, Bonds, and Real Assets Did in the 2nd Quarter

U.S. stocks did well in the 2nd quarter and outpaced non-U.S. equities. Rates rose in the U.S. and the yield curve flattened. Currencies drove returns for non-U.S. fixed income. Geopolitics played a big role in commodity returns

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 […]