4th Quarter Update on Commercial Real Estate
View Market Review The NCREIF Property Index advanced 1.8% during the fourth quarter (1.2% from income and 0.6% from appreciation). This marked the 36th consecutive quarter of positive returns for the Index. Industrial (+3.3%) was the best-performing sector for the seventh consecutive quarter. Office (+1.7%) and Apartments (+1.6%) also did well. Hotels (+1.0%) were the […]
Hedge Fund Outlook for 2018–No Grit, No Pearl
View PDF With equity prices still near historic highs, now is an appropriate time to take stock of the world’s capital markets and consider the outlook for hedge funds. Should investors buy, sell—or hedge? In this post I provide a framework for developing current return expectations and determining the appeal of a hedge fund allocation. […]
How Callan Categorizes MAC Strategies
View PDF By Mark Andersen and Jason Ellement Multi-asset class (MAC) strategies have existed for decades; the first product with an allocation to balanced stock and bond strategies was launched more than 80 years ago. In the 1980s, MAC strategies evolved, moving beyond static into tactical asset allocation. In the 1990s, MAC strategies expanded globally, […]
Private Markets Stay Robust in 2017
View PDF As 2017 progressed, the private markets stayed on track to set records for fundraising. New private equity partnership commitments totaled $249.4 billion through the third quarter, up 29% from the same period in 2016, according to Private Equity Analyst, and on a pace to top the record $312 billion raised in 2016. And over three […]
What Limited Partners Are Saying About Infrastructure
Jan Mende of our Real Assets Consulting group recently discussed the sentiments of U.S. limited partners (LPs) about infrastructure in a video interview. Interest in the asset class is growing, she said. Investors who have made allocations to infrastructure are satisfied with its performance and would like to increase their exposure, while investors not yet in […]
The Rise of Infrastructure Debt Investments
View PDF Infrastructure can be broadly described as facilitating the movement of people, goods, and ideas, and it is essential for the economic productivity of a society. Infrastructure assets include regulated utilities, transportation assets, energy assets, communication assets, and social infrastructure. Before the Global Financial Crisis (GFC), traditional banks were responsible for nearly 90% of […]
Low Volatility + Rising Markets = Strong Liquidity
Low volatility and gently rising markets fostered ongoing “Golden Era” conditions in the private equity market. Fundraising is on pace to best last year’s post-GFC high; buyout and venture investments slowed slightly but dollar volume remained healthy.
Best Location for Real Estate? Europe
The NCREIF Property Index advanced 1.7% during the third quarter (1.1% from income and 0.6% from appreciation). This marked the 35th consecutive quarter of positive returns for the Index. In the second quarter, appreciation return increased from the first quarter, the first such gain since the first quarter of 2015. But in the third quarter […]
Kickin’ It with Risk
View PDF As MAD magazine’s Alfred E. Neuman proclaims, “What, Me Worry?” In the third quarter, global markets fully embraced that fearless mantra. And why not? Discarding past worries of stubbornly slow economic growth and other trifling distractions, markets focused on positive catalysts suggesting rising prices ahead. Corporate earnings worldwide enjoyed a notable uptick. Shrinking ranks of […]
Uncertainty Beyond the Next Eclipse
Unlike the laws of physics driving our solar system, our financial markets can surprise investors with moments of darkness.