Blog

A Brief Risk Update: Equity Volatility

For the time being, cross asset correlations suggest the current equity market dislocation is relatively contained reflecting technical factors – specifically risk rebalancing in volatility-driven equity strategies. Typically, in downturns reflecting cyclical turns or financial distress, cross asset correlations go up. These circumstances would include spikes in concerns about rising interest rates or inflation (break-even […]

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Asia-Pacific Outlook

In contrast to the mixed measures in both the U.S. and European markets, deal flow, exits, and fundraising are all up in Asia-Pacific private equity markets. While these trends are positive, many of the Asia-Pacific economies are substantially dependent on exports, which makes them very sensitive to economic performance in other regions of the world. […]

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Stock Market Volatility in 2017

One of the surprises for 2017 was the relative calm experienced by capital markets. This past year marked significant decreases in volatility – a change for both Canada and the United States. Looking at the Canadian S&P TSX Composite Index, November 2017 recorded the lowest volatility in a decade. If we tally up the number […]

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Venture Capital Outlook

The U.S. venture capital exit market has been slowing but, unlike the buyout market, deal flow is up for both early-stage and late-stage companies. However, venture capital fundraising has been moderating. Perhaps the biggest challenge facing the U.S. venture capital market is the IPO environment. While the IPO market showed some signs of recovery in […]

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European Fundraising

Fundraising has been buoyant for several years and, three weeks into 2018, shows no signs of abating. According to Pitchbook, in 2017 EUR77.6 billion was raised by 117 European funds which was lower than the record EUR96.2 billion raised by 140 funds in 2016, but still very high by historical standards. We rigorously track and […]

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The 4% Rule: Withdrawal Rates in Review

With the demise of defined benefit plans and ascendancy of defined contribution plans, participants not only must make decisions regarding investment strategy, but also they must decide on a withdrawal strategy once they retire. This can be agonizing especially given evidence that most baby boomers have under-saved for retirement. Retirees will want to withdraw as […]

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Questions clients are asking – The Challenges of Alternatives Investments

Q: “We’re a very large client with substantial capital to deploy. What challenges might we face in designing, implementing, and monitoring a private markets program?” A: There are significant challenges in building and managing a successful private markets program, but the potential for additive return to the overall plan as demonstrated by the performance of […]

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Active vs. Passive Equity

Introduction: One of the most difficult philosophical questions to consider in the traditional equity markets is whether to use “active” or “passive” management. While outperforming the index in efficient market segments can be challenging for active managers, there are market environments in which they should be able to add alpha over their benchmarks. There is […]

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