There are 35 results for 'Alternatives'

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.(Estimated reading time: 2 min 50 sec)Industrial (+3.3%) was the best-performing sector...

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...

Year in Review: Private Market Activity Maintains Strong Pace

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.(Estimated reading time: 3 min 15 sec)In the...

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...

Vexing Volatility

Market volatility spiked in February, coinciding with declines for the S&P 500 Index and the Bloomberg Barclays U.S. Aggregate Bond Index. 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...

Risk Takers See Less as More

The final quarter of 2017 demonstrated that less is more, especially when related to unemployment, taxes, and market volatility. Global unemployment continued to fall, bolstering consumer spending power. President Trump delivered on his promise of cutting corporate taxes, instantly helping...

4th Quarter Update on Commercial Real Estate

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.(Estimated reading time: 2 min 32 sec)Industrial (+3.3%) was the best-performing sector...

Hedge Fund Outlook for 2018–No Grit, No Pearl

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?(Estimated reading time: 3 min 56 sec)In this post...

How Callan Categorizes MAC Strategies

By Mark Andersen and Jason EllementMulti-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...

Private Markets Stay Robust in 2017

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...

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...

The Rise of Infrastructure Debt Investments

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.(Estimated reading...

PE Market Sees ‘Golden Era’

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.(Estimated reading time: 1...

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, ...

Kickin’ It with Risk

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...

Uncertainty Beyond the Next Eclipse

On August 21, 2017, a total solar eclipse swept across America. This rare celestial event involved no uncertainty, so everyone was prepared for it. In ancient times, though, civilizations that could not understand the true nature of eclipses reacted in...

The Private Debt Pie

As institutional investors consider adding private debt to their portfolios, Callan’s Jay Kloepfer, executive vice president and the director of Capital Markets Research; and Jay Nayak, senior vice president in our Private Equity Research group, prepared answers to some high-level...

Latest on the Private Markets

The private equity markets kept up their robust pace of fundraising in the second quarter. Buyouts continue to be the top strategy for limited partners, receiving more than 70% of commitments.(Estimated reading time: 1 min 15 sec)Among the quarter’s other...

Private Equity Survey (2017)

Callan conducted a survey of institutional private equity investors to offer insights relevant to the limited partner community. We focused on deployment models, patterns of investment and commitment activities over time, governance and oversight, staffing and resources, and responsibilities for...

Jan Mende in Pensions and Investments: Infrastructure

Callan's Jan Mende recently appeared in the Pensions and Investments roundtable feature, \"What Does the Future Hold for Infrastructure Investing?\" The article covers a wide-ranging set of topics of interest to infrastructure investors—one of Jan's Q&As is...

A Small Bounceback for Real Estate

The NCREIF Property Index advanced 1.8% during the second quarter (1.2% from income and 0.6% from appreciation). This marked the 34th consecutive quarter of positive returns for the Index. Appreciation return increased from the previous quarter, the first such gain...

As the World Churns, Despacito

Stock lovers embraced the slowly shifting narrative of global growth in the second quarter. Although hopes of a Trump bump faded further in the U.S. amid distracting Beltway theatrics, U.S. corporate profits remained resilient and credit spreads tightened modestly. Exhibiting...

Strong Start for Private Equity

The private equity market got off to a roaring start in the first quarter of 2017, with new commitments up sharply compared to last year.(Estimated reading time: 2 min 42 sec)Here are some highlights from Callan’s Spring Private Markets...

The Rewards of Private Equity’s ‘Unrewarded’ Risks

For many portfolios and asset allocation studies, private equity plays a starring role because it boasts high projected returns and low enough expected correlations that mathematical models such as mean variance optimization love it. But private equity is not magic.(Estimated...

Bear Market Ahead? Beware of the ‘False Charge’

When I was a Boy Scout backpacking in the Sierras, my troop assigned shifts of scouts at night to watch for marauding bears on the perimeter. To scare them off, the sentry clanged a pot or made some raucous noise....

Dollops of Alpha with Beta

Behold the power of positive thinking. The U.S. economy moved steadily forward with revived animal spirits in the first quarter. That provided the Fed the ammunition to raise short-term rates by 25 basis points, with more increases expected in the...

New Year, New Lows for Real Estate

The NCREIF Property Index advanced 1.55% during the first quarter (1.15% from income and 0.40% from appreciation). This was the lowest return since 2010, eclipsing the fourth quarter’s mark of 1.73%. Appreciation fell for the eighth consecutive quarter and made...

Private Equity on a Roll

New private equity partnership commitments totaled $80.0 billion in the first quarter, with 310 new partnerships formed, according to preliminary data from Private Equity Analyst. The number of partnerships jumped 75% from 177 in the first quarter of 2016, and...

The Hedge Fund Edge: Still Sharp or Too Dull?

Why should investors bother with hedge funds? The original proposition behind them was their promise of differentiated performance: better risk-adjusted returns with a lower correlation to traditional capital markets. However, recent history suggests that the current generation of hedge funds lacks...

In Context: Credit Lines and Private Equity

I recently read a Bloomberg article titled, “Buyout Firms Are Magically -- and Legally -- Pumping Up Returns.” It is about vehicle-level leverage creeping into the private equity business. Here, I share some related thoughts for consideration.Early on, limited...

Creating Our Real Estate Indicators

Our Real Estate Indicators,  which attempt to provide insight about the commercial real estate market cycle, play a vital role in our conversations with clients and our approach to investing in this asset class.(Estimated reading time: 1 min 12 sec)In...

Private Real Estate Debt and Middle Market Direct Lending

Private debt offers an attractive opportunity for some institutional investors in this challenging financial environment, as they confront low yields today yet need to bolster their portfolios against the impact of rising rates.(Estimated reading time: 1 min 19 sec).At Callan's 2017...

Private Equity Activity Trended Downward in 2016

In the Winter edition of Private Markets Trends, I discuss the major themes of 2016 and the outlook for this year and beyond.Last year company investments and exits trended downward for both buyouts and venture capital, compared to 2015....

Alternative Facts and the Evolving Role of Hedge Funds

Hedge funds have faced a difficult stretch, underperforming less-expensive alternatives for years. However, as lightly regulated managers with few investment constraints, hedge funds have a distinct advantage over traditional investments such as mutual funds.For this quarter’s Fiduciary Perspectives essay, ...