October 2024Diversification Considerations Given Changing Stock-Bond CorrelationsHarry Markowitz, Nobel Laureate and creator of modern portfolio theory, is credited with the famous quote, “Diversification is the only free lunch in investing.” Diversification is a fundamental best practice for any investment allocator. However, diversification benefits across asset classes... |
September 2024Insurance Businesses and Credit RatingsTransferring risk from the insurance policy holder to the insurer puts every insurance customer in the position of being a creditor, so the perception of creditworthiness is key to the viability of an insurance business. Expert assessments of creditworthiness in the form of credit ratings by... |
July 20242024 Q2 Peer Group AnalysisEach quarter, where appropriate, RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taft... |
June 2024US Small and SMID Cap Growth Equity TrendsRVK has observed a consistent theme in recent meetings with US small cap and SMID (small and mid) cap equity managers—primarily on the growth side. Market concentration is not reserved only for US large cap, and the return contribution of two specific companies... |
May 2024Public Funds Report: December 2023 ObservationsFor over 30 years, RVK has published a semiannual Public Funds Report, summarizing survey data from public pension plans (“public funds”) across the US. The public funds included in our reports range... |
April 20242024 Q1 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taf... |
March 2024Private Equity Return Premiums and the Current MarketWhile we are wary of predicting an exact value, given the complexity of markets and the number of assumptions involved, we are comfortable putting the current market environment into historical context and providing some broader observations... |
March 2024Monetary Policy and Equity TrendsThere have been two major US stock market trends frequently discussed in recent client and investor meetings: stock market concentration and the resumed leadership of growth stocks in 2023. The drivers and potential reversal of these trends are key topics within... |
February 20242024 Capital Market AssumptionsEvery calendar year RVK produces long-term forward-looking capital market assumptions through a rigorous multi-step process that draws on both quantitative economic and financial inputs as well as qualitative comparisons and analysis... |
January 20242023 Q4 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taft Hartley... |
January 2024Equity Exposure to ChinaOver the past decade, investment managers of all styles have grappled with the issue of investing in China, a country that represents significant exposure within emerging markets equities and presents unique geopolitical and governance challenges. Views on investing.. |
October 20232023 Q3 Plan Sponsor Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taft Hartley Defined Benefit, Health & Welfare, High Net Worth, Insurance... |
August 2023US Debt Rating DowngradeBelow is our assessment of the US debt rating downgrade by Fitch as of the date of publication, August 4, 2023. We will continue to monitor the situation as it evolves... |
August 20232023 Q2 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate... |
July 2023US Stock Market ConcentrationThe drivers of price movement in public markets are forever shifting and are often difficult to discern and isolate. The first half of 2023 is no exception, as many forces continue to impact investor decisions and market results. However, there is one trend that has garnered significant attention: the largest index holdings in the US stock market... |
June 2023Short-Term Uncertainties, Long-Term FocusWith the yield curve still inverted, we are often asked about the potential for a recession and the magnitude of its impact on capital markets. While there is significant uncertainty about the path of capital markets over the short term, we continue to believe the best approach for strategic investors is to focus... |
May 20232023 Q1 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taft Hartley Defined Benefit, Health... |
May 2023Public Funds: 5-Year Asset Allocation TrendsFor over 30 years, RVK has published a semiannual Public Funds Report, summarizing survey data from public pension plans (“public funds”) across the US. The public funds included in our reports range in size from less than $500 million to over $20 billion, providing a comprehensive view of the public... |
March 2023Silicon Valley Bank UpdateBelow is our ongoing assessment of Silicon Valley Bank (SVB), Signature Bank (Signature), and the broader banking system as of the date of publication, March 14, 2023. We will continue to assess the situation as it evolves... |
March 20232023 RVK Capital Market AssumptionsEvery calendar year RVK produces long-term forward-looking capital market assumptions through a rigorous multi-step process which draws on both quantitative economic and financial inputs as well as qualitative comparisons and analysis. Our return estimates are generally based on return decomposition models... |
February 2023US Equity Active Management Performance TrendsThe following is an overview of recent and longer-term active management trends in US equity markets. Over the past 20 years, large- and mid-cap managers, primarily in the growth and core spaces, have struggled to generate excess returns relative to their respective benchmarks over rolling three-year periods... |
February 20232022 Q4 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taft Hartley Defined Benefit, Health & Welfare, High... | December 2022Perspective on Market Performance in RecessionsSurveys of economists and fund managers, as well as forecasts from economic think tanks, increasingly point to a growing likelihood that the US economy could face economic contraction sometime in the next year. The Conference Board predicted in October of 2022 that there is a 96% probability of recession... |
November 2022Open-Ended Real Estate Queue UpdateThe following is an overview of recent economic and broad market events that may lead to disruptive expected cash flow patterns in our client’s open-ended real estate funds. In 2022, the public equity and debt markets experienced elevated levels of volatility and weakness. Year to date, private real estate... | November 20222022 Q3 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Trust category includes Corporate, Healthcare, Taft Hartley Defined Benefit, Health & Welfare, High Net Worth... | September 2022US Equity Trends - Momentum ShiftThe correction among growth stocks in the US equity market has been swift. Investor sentiment has rapidly moved away from stocks with prices tied to above average long-term growth forecasts. This change has occurred in an environment... |
September 2022Understanding the Impact of Lagged Private Equity ReturnsOne of the inherent reporting challenges of illiquid investments, such as private equity (PE), is how to incorporate quarterly private valuations into total portfolio performance. The longer the private market valuations take... |
September 20222022 Q2 Peer Group AnalysisEach quarter RVK utilizes peer group data to provide clients with a comparison of similar funds’ performance. Each client group listed is comprised of funds under the same category; the broad All Master Tru category includes... |
August 2022Post-Pandemic Investment Manager Due DiligenceThe COVID-19 pandemic has meaningfully altered many of the ways RVK conducts its business on a day-to-day basis. Conducting manager research is no exception. At the onset of the pandemic, when nearly all the financial services industry shifted... |
July 2022Current Inflation in ContextThe US Consumer Price Index (CPI) increased by 9.1% over the past 12 months ending June 30, 2022. While inflation has been elevated in the US over the past several months, the June inflation report was the largest 12-month increase since... |
June 2022The Fed Balance Sheet and Active Public Equity ManagementThe shift to passive management of public equities is well documented in the institutional investing landscape (see Figure 1). Although numerous rationales exist for this trend, the most common explanations include... |