There are 23 results for 'Best Practices'

Untangling the Gordian Knot of ‘Cash Drag’

Modern portfolios are increasingly complicated as they have expanded beyond stocks and bonds. The management of those portfolios—and the attendant illiquidity that can come with alternative investments—has many asset owners staring at a Gordian knot very much in need...

Examining MiFID II After Implementation

Last August Callan outlined some of the issues raised by MiFID II, the second iteration of the Markets in Financial Instruments Directive. We wanted to provide an update on the directive, which took effect at the start of this...

Rebalance Your Portfolio, or Let It Ride?

With the return of market volatility, investors are asking whether it is an appropriate time to rebalance their portfolios. Our view: Yes! This sometimes-overlooked procedural discipline is extremely important.(Estimated reading time: 3 min 50 sec)Asset allocation may be the most...

Active Share Is Not a Litmus Test

A recent deal between the New York state attorney general’s office and major investment firms highlighted the role of “active share” in evaluating mutual funds or other pooled investment vehicles. While the New York deal, in which 13 firms representing...

Managing an NQDC Plan Investment Menu

In an article for the latest edition of our DC Observer, I discussed non-qualified deferred compensation (NQDC) plans, the investment menu structure, and hedging strategies. Unlike a qualified defined contribution plan, in which plan assets are segregated from the employer’s...

Callan Poll: How Many Funds Are Considering Gun Divestiture

At the request of one of Callan’s large public fund clients, we conducted a timely “micro-poll” last week to understand where these investors stand on the issue of divestiture from gun manufacturing companies (note this poll did not inquire about...

Our Manager Search Process

I’m always struck by the number of media articles with titles such as, “How to get into consultant XYZ’s search process.” While it is certainly necessary to know how each consultant operates, a consultant's search process should ultimately be able...

Divest or Engage? Our Advice

The recent spate of deadly shootings in the U.S.—especially those involving schoolchildren—has prompted some institutional investors to ask about ways to use their portfolio assets to signal they would like to see meaningful change related to firearms and their role...

Tax Bill’s Impact on Foundations and Higher Ed

By Steve Center and Karen HeifferonThe tax overhaul bill signed into law by President Trump at the end of last year could have significant long-term effects on endowments and foundations—particularly nonprofit organizations dependent on charitable donations and certain private colleges...

Securities Lending 101

By Kyle Fekete and Mark KinoshitaAs passive investing becomes a larger part of fund sponsors’ portfolios, investors are encouraged to look underneath the hood of their indexing strategies to evaluate securities lending. This has played an integral role in maintaining...

Diversification: Where’s My Free Lunch?

Much of asset allocation work rests on the back of modern portfolio theory, which asserts that diversification stands as the lone “free lunch” offered up by the market gods. But in reality, the ascent of target date funds (largely built...

On Charitable Giving

It’s been said that 80% of life is just showing up. While real life is certainly more complicated than that, showing up is actually what most charitable organizations value most. Showing up demonstrates that you care about what the institution...

The Power of Savings

While the institutional investing industry spends enormous time and effort on the details of glide path design for target date funds in defined contribution plans to improve retirement for participants, it might be as important to revisit the role savings...

Thoughts on Relevance

Staying competitive in our industry is critical for all of us, but it is becoming more challenging. We are all well aware of the many issues our industry faces. However, from my perspective as a 40+ year industry veteran, it...

Our Nuclear Decommissioning Funding Study

Callan’s annual Nuclear Decommissioning Funding Study offers key insights into the status of nuclear decommissioning funding in the U.S. to make peer comparisons more accurate and rel­evant. The 2017 study covers 27 investor-owned and 27 public power utilities with an...

So What the Heck Is SUBICO?

Callan is committed to original, path-breaking research to help educate the financial industry and serve our clients. That commitment began with the firm’s founding and continues today with a research operation that spans every major asset class and investing strategy.(Estimated...

How DTS Helps Us Evaluate Bonds

Evaluating bonds and fixed income portfolios can be complex and challenging, and to help make that process easier I developed a way for Callan to use a metric developed by practitioners called DTS, or duration times spread, which measures systematic...

Open Protocol: Comparing Apples to Apples

Evaluating the risks of a large cap value portfolio against those of another has long been a relatively easy exercise for investors. However, evaluating the risks of an absolute return-oriented risk premia fund versus those of a relative value multi-strategy...

More than Words: The Asset Manager Code of Professional Conduct

The perception and validation of ethical standards in investment professionals builds client trust in an advisor and strengthens the resolve to stay the course when the advisor’s strategy is out of favor.(Estimated reading time: 2 min, 15 sec)If you think...

Top 10 Tips for Investment Committees

Investment committees face complex challenges overseeing institutional investment funds. They must navigate myriad laws and regulations, select the right managers and strategies, monitor their portfolios, and ensure their funds can deliver the returns needed for their beneficiaries.(Estimated reading time: 2...

Saving Public Defined Benefit Plans: Talking Points

The funded status of public employee defined benefit (DB) retirement plans continues to garner great debate in the industry and press. DB plans are the primary vehicle for ensuring retirement income security for public workers, and Callan believes these plans...

Built to Last: Strategic guidance for effective investment committees

In this paper, authors Elizabeth Hood, CFA, and Cody Chapman, CFA, CAIA, offer advice in areas including committee membership, investment policy statements, review processes, and fiduciary training and ongoing education.Key points include: Investment committees are increasingly essential to the success...

Ethical Mindfulness

Studies show that the key to ethical behavior is to keep promoting, discussing, and practicing ethical principles. Here, we present eight important points on ethics:Implementing high ethical standards in the investment industry is not only the right thing to do, ...