Press

DailyAlts refers to MPI’s research on scaling hedge fund programs at pensions in a story on CalPERS’ reasoning for terminating its ARS program, noting that a 10% allocation “can improve the overall risk, return and Sharpe ratio of a portfolio” but that manager selection is crucial in the outcomes.

Chief Investment Officer associate editor Sage Um utilizes MPI research on the relationship between scale, selection and impact of pensions’ allocations to hedge funds on portfolio risk and return profiles to ask if CalPERS would have been better off with a significantly greater allocation to its ARS program. Um notes MPI commentary on fee structure challenges and necessary evolution to better align interests and drive successful investment outcomes.

Planadviser covers the launch of MPI Stylus Web for tablet devices. MPI Stylus Web, the research and reporting tool of choice for retirement plan advisors and asset management wholesalers, is now available with full functionality in application format for iPad, Android and Microsoft Surface devices. Users will benefit from a more seamless workflow, productivity gains and technology enhancements. For more information, see the press release, tablet page and iPad app page.

In light of CalPERS’ termination of its hedge fund program, Risk.net editor Luke Clancy covers exclusive MPI research on 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 CalPERS portfolio with allocations to hedge funds of 1%, 5% and 10%, MPI’s research 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. The article appears in the November issue of Risk, as well as online in a related CalPERS story. For the full research, see MPI’s Research.

In a feature story in the launch edition of The Alpha Pages, owner and sibling publication to FINalternatives and Futures, Deirdre Brennan quotes MPI’s Bill McBride on transparency and liquidity challenges in liquid alternatives. McBride gives insight into the ways in which the asset management industry can evolve reporting and communication of alternative mutual funds and how investors can analyze liquid alts.

InvestmentNews asset management reporter Trevor Hunnicutt quotes MPI President Jeff Schwartz in a story on the risks and particularities of “go-anywhere” bond funds as high yield, low quality securities fall out of favor. Referencing MPI research on the nontraditional bond fund category, Schwartz discusses how tactical mandates present risk management challenges, how advisors struggle with proper asset allocation of unconstrained funds and the huge deviations from manager to manager that are more representative of hedge funds.

Barron’s Focus on Funds columnist Brendan Conway deems MPI’s research on the “eclectic bunch” of unconstrained bond funds amongst the day’s best. See the full research on MPI’s Research Corner – “Too Heterogenous Too Handle: The Case for Careful Analysis of Nontraditional Bond Funds“

Financial Times US Investment Correspondent Stephen Foley highlights MPI research in his “Smart Money” column regarding the need for greater investor diligence when using risk-adjusted rankings to make investment decisions. As the Financial Crisis fades from performance track records and risk measures, he urges investors not to let the period of turmoil drop from statistical memory and to review risk and ranking methodologies. See the full research from Jeff Schwartz and Megan Woods in MPI’s Research Center (“Crisis in the Rearview Mirror”).

Premier financial blog Abnormal Returns includes Megan Woods’ “Risk Parity – What’s in a Name” as one of its select daily reads. The piece, first appearing in FINalternatives, analyzes performance of risk parity mutual funds, finding a surprising disparity between offerings in terms of estimated asset exposure and implied leverage levels.

The 401kWire’s Neil Anderson references new research from MPI’s Megan Woods and Jeff Schwartz on the need to monitor the way mutual funds rank in traditional Defined Contribution scorecards as the impacts of the Financial Crisis fade from the 5 year window commonly used in fund screens and rating systems. The elimination of the Crisis downmarket has led to rapid changes in the way funds rank and overall volatility in fund rating systems. See the full research, “Crisis in the Rearview Mirror”.