Topical Research

Showing Topical Research research articles: 120 of 32

Survey on Hedge Fund Operations

Added: December 1, 2014

NEPC recently completed our fifth annual survey of all the hedge funds used by our clients.  This survey focuses on back office areas and internal fund operations.  NEPC clients that are invested in hedge funds:  Your consultant will be in touch shortly regarding details on the specific hedge funds used in your investment program(s).

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Improving Asset Allocation with Factor Analysis

Added: November 4, 2014

This NEPC research paper recommends using macroeconomic risk factor analysis to provide new insights into portfolio management.  A multi-disciplinary and holistic approach that includes factor analysis can strengthen the asset allocation decision-making process.

 

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Moving in Different Directions: NEPC's 2014 Asset Allocation Letter

Added: January 23, 2014

NEPC's annual asset allocation letter highlights the benefits of diversification, disciplined rebalancing, and a forward-looking approach as markets and asset classes show signs of diverging.

 

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NEPC Survey on Hedge Fund Operations

Added: November 25, 2013

NEPC recently completed our annual survey of all the hedge funds used by our clients.  This survey focuses on back office areas and internal operations. 

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Quantitative Equity Hedge Funds: Revisiting Their Strengths

Added: November 5, 2013

The NEPC research paper examines the benefits of quantitative long/short equity hedge fund strategies.  These investments not only offer a potential source of alpha, but also are an effective way to incorporate diversification and skill in investors’ portfolios.  

 

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Pursuing the Low Volatility Equity Anomaly: Strategic Allocation or Active Decision?

Added: September 3, 2013

The research paper examines low volatility equity investing by assessing the case for a continuing anomaly and its potential causes. It considers whether such an anomaly is likely to persist and the role, if any, of low volatility equity investing in long-term investment portfolios.

The version of this paper has been published in the Fall 2013 edition of The Journal of Investing. For more information regarding The Journal of Investing, please visit their website.

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Few Implement Responsible Investing Even as Interest Grows: NEPC Survey

Added: April 23, 2013

Few investors have implemented Responsible Investing initiatives, according to a survey conducted by NEPC, LLC.  In addition, these organizations expect Responsible Investing to comprise a small part of their investment programs even five years from now.  These low implementation rates are at odds with the increased interest in and greater awareness around this type of investing. At NEPC we see anecdotal evidence of the potentially bigger role Responsible Investing may play in long-term portfolios.

 

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More Questions Than Answers: NEPC's 2013 Annual Asset Allocation Letter

Added: January 23, 2013

NEPC's annual asset allocation letter highlights an investment landscape fraught with risk but short on returns. The solution: a strategic approach to asset allocation with the flexibility to act when opportunities do appear.

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NEPC Survey on Hedge Fund Operations

Added: November 1, 2012

NEPC recently completed our annual survey of all the hedge funds used by our clients.  This survey focuses on back office areas and internal operations.  Click the blue rectangle above to download a summary.

 

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Responsible Investing: Looking Back and Opportunities Ahead

Added: October 9, 2012

Over time there have been substantial developments in the responsible investing area. As a result, responsible investing looks and sounds quite different from what was predominantly a negative screening approach many years ago.

 

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Old Phrases, New Phases: NEPC's 2012 Asset Allocation Letter

Added: January 27, 2012

NEPC's annual asset allocation letter.

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Endowment & Foundation Spending in an Integrated Asset/Liability Framework

Added: January 26, 2011

A re-issue of our paper released in August with the 2011 5-7 year Capital Market Expectations.

The recent market environment has led Endowment and Foundation Trustees to re-evaluate the key aspects of their investment oversight.  For most Trustees, the challenge is to balance the two competing financial objectives of an institution: meeting current spending needs while maintaining the long term “real” value of the assets.  This paper focuses on ways to create an ideal spending policy. 

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The Long View - NEPC's 2011 Asset Allocation Letter

Added: January 24, 2011

NEPC's annual asset allocation letter.

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Securities Lending Revisited

Added: October 4, 2010

In the fall of 2008 Securities Lending programs came under increased scrutiny from institutional investors.  At that time NEPC published our outlook on Securities Lending programs focusing on the factors underpinning the crisis and our future expectations for securities lending in institutional portfolios.  In the last two years since the collapse of Lehman Brothers in September 2008 a cascade of events helped illuminate the embedded risks within the majority of securities lending programs.  The purpose of this paper is to revisit our original comments, to provide further guidance on securities lending programs and to develop a framework which investors can use to help inform their decisions surrounding securities lending program structure.

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NEPC Healthcare Survey

Added: September 23, 2010

NEPC conducted a survey of healthcare investment professionals. The goals were to understand healthcare investment portfolios’ governance structure, staffing models, resources and complexity. While responses varied, two themes emerged: dissatisfaction with current staffing and the need for more investment expertise.  This paper analyzes the results.

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Demand More of the New Decade

Added: February 12, 2010

NEPC's annual asset allocation letter.

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Understanding Duration Risk in Pension Plans: The Case for LDI

Added: January 29, 2010

Recent changes in the rules governing U.S. corporate pension plans (the Pension Protection Act of 2006 for contribution funding, and FASB 158 for balance-sheet accounting) move plans closer to “mark-to-market” measurement of assets and liabilities. These rule changes have prompted much discussion on the role of LDI in pension plans.

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Risk Budgeting: A Focus on a Pension Plan's Biggest Risks

Added: January 29, 2010

With the widespread acceptance of modern portfolio theory by investors, asset-allocation decisions are often driven by the quest to select a portfolio that maximizes long-term risk-adjusted returns. The recent financial crisis, however, has intensified investors’ focus on  understanding the risks embedded in their portfolios.

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LDI Product Types and Implementation Strategies

Added: January 28, 2010

This paper outlines the main types of Liability Driven Investment (LDI) products and discuss issues to consider in implementing LDI.

 

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Pension Protection Act Regulatory Updates and Their Effects on Liability Driven Investment Strategies

Added: January 6, 2010

When the Pension Protection Act (PPA) was released in 2006, the general thrust for defined benefit retirement plans was to require more stringent funding requirements with less flexibility in setting the assumptions used to calculate plan contributions.  The new regulations also created many questions on various implementation approaches and calculations.  Yet, when PPA became effective for pension plan years beginning in 2008, many of these questions were left unanswered. 

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