New research utilizes MPI’s proprietary Dynamic Style Analysis (DSA) to dive into the opaque world of endowment investing. With only ten data points representing a decade of returns, the model reveals significant insights into the sources of top endowments’ returns. The study finds a predominant portion of endowment returns are explained by asset allocation, particularly to illiquid alternative factors. To read more, including a performance attribution for fiscal year 2015, see the full analysis on the MPI Research Corner.
The latest information on our product and service enhancements, client wins and company moves.
MPI Research from Senior Analyst Sean Ryan on the behavior and performance characteristics of nontraditional bond funds was broadly featured across the investment media landscape, including Barron’s, Daily Alts, Financial Times, InvestmentNews and WSJ Wealth Adviser. The full research report, “Examining Recent Winners and Losers in the Nontraditional Bond Fund Category”, can be found on the MPI Research Corner.
Executive Vice President Bill McBride was invited to present on the institutional challenges of investing in smart beta products at Financial Research Associates’ Smart Beta 2.0. The presentation, “Benchmarking Smart Beta: What Are the Rules for Measuring Nontraditional Strategies” was given to an audience of asset owners and investment managers. To see the presentation, please contact us.
MPI partners with Eurekahedge to create and maintain the Eurekahedge 50 Index, a new benchmark index tracking the top 50 hedge funds. The Eurekahedge 50 Index was created to meet the demands of institutional hedge fund investors seeking a more selective benchmark reflective of diversified institutional quality hedge fund portfolios. The Eurekahedge 50 Index tracks the returns of the top hedge funds based on longevity, assets under management and quality of risk-adjusted returns, taking into account stability and consistency. See the press release here.
In light of CalPERS’ termination of its ARS hedge fund program, Risk Magazine asked MPI to look at the relationship between scale, selection and impact of allocations to hedge funds on the portfolio risk and return profile at pension funds. Testing a hypothetical pension portfolio with allocations to hedge funds of 1%, 5% and 10%, the study finds significant positive benefits on total returns and risk-adjusted returns of hedge fund allocations at the 5% and 10% levels, though negligible impacts on the risk and return profile at the 1% level. The findings contribute to the industry debate about the role of hedge funds in defined benefit plans, including issues of scale and selection, as well as fee structure challenges and the need to evolve. The research appeared first in Risk Magazine’s November issue, and was later referenced in Asset International’s Chief Investment Officer, DailyAlts and widely in the Twitter sphere. For the full research, see MPI’s Research Corner.
MPI launches Stylus Web in app format with full functionality for mobile usage on tablets, including iPad, Android and Microsoft Surface devices. Plan advisers and wholesalers will greatly benefit from seamless workflow between the field and the office, increased productivity and technology enhancements to the platform. Read the press release on Business Wire and see exclusive coverage of the product in planadviser.com. For more details on the product, click here.
MPI announces the new release of software platform Stylus Pro Version 11, a powerful tool for quantitative manager research, surveillance, risk analysis, portfolio construction and custom reporting. Read the full press release
MPI Chairman Michael Markov was a guest contributor to FINalternatives and published an article utilizing MPI’s Dynamic Style Analysis (DSA) technique applied to Bridgewater’s All Weather Portfolio. Read the full article here.