Monthly Archives: July 2014

Why Endowment Funds Like Yale’s Are Doing Just Fine

Post On July 31, 2014 by

The Ivory Tower geniuses atop the country’s most respected endowments have recently received a firestorm of criticism for failing to produce outsized returns during the current bull market. But investors must accept that all investment strategies experience periods of underperformance and it’s hardly a reason for endowments to hang their heads. Investors tend to have short memories and forget that these same endowments outperformed the stock market over the past decade with much less volati...

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Endowment Wealth Management Weekly Capital Markets Update For Week Ended July 25, 2014 by Prateek Mehrotra

Post On July 27, 2014 by

Weekly Capital Market Highlights: Domestic stock prices were mixed this week. Equity prices were generally higher, with the S&P 500 closing at a new record high on Thursday. Intensifying geopolitical skirmishes seem to have had little effect on the market, with investors focusing on corporate financial results. Inflation remains subdued, signaling the Federal Reserve won’t need to rush into raising interest rates.  Roughly half of the S&P 500 companies have so far reported second qu...

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Endowment Index™ Closes Higher For Week Ended July 25, 2014

Post On July 25, 2014 by

The Endowment Index™ (^ENDOW on Yahoo!Finance) closed at 1033.79  for week ended July 25, 2014, increasing from the close of 1030.10 for the week ended 7/18/2014.  The Endowment Index™ measures performance for a multi-asset, globally-diversified, three-dimensional portfolio that includes Global Equity, Global Income, and Alternatives. Past performance is not necessarily indicative of future results. You cannot invest directly in an index. Indexes do not have fees. ...

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Which measure of Wage Inflation is optimal?

Post On July 25, 2014 by

The Labor Department measures wages and salaries in many different forms: Average Hourly Wage Median Weekly Earnings Employment Cost Index Employer Costs for Employee Compensation Compensation per Hour Unit Labor Costs Each measure has pros and cons when it comes to capturing true wage trends and inflation pressures in the economy. Unit labor costs, for instance, take into account productivity, but growth can be very volatile. The average hourly wage is timely and broad-based, but it ...

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Japan's consumer inflation slows to 3.3% in June

Post On July 25, 2014 by

Japan's consumer prices rose 3.3 percent in June from a year earlier for the 13th consecutive month of increase, but the pace of increase has been slowing in recent months, government data showed Friday. The core consumer price index, excluding volatile fresh food prices, stood at 103.4 against the 2010 base of 100, the Ministry of Internal Affairs and Communications said. The figure was in line with private-sector forecasts. The data have been affected by the consumption tax hike since April....

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40%

The expected reduction in the amount invested in hedge funds this year by the California Public Employees’ Retirement System, the largest public pension fund in the U.S.

Listed below is CalPERS current asset allocation mix by market value and policy target percentages as of April 30, 2014.

Asset Class Actual Investment ($ Billions) Actual Investment % Interim Strategic Target %1
Growth $187.4 64.5% 64.0%
Public Equity $156.4 53.8% 50.0%
Private Equity $31.0 10.7% 14.0%
Income $45.7 15.7% 17.0%
Liquidity $12.4 4.3% 4.0%
Real Assets $28.4 9.8% 11.0%
Real Estate $24.6 8.5% 9.0%
Forestland/
Infrastructure
$3.8 1.3% 2.0%
Inflation $9.7 3.3% 4.0%
Absolute Return
Strategy
$5.0 1.7% N/A
Multi Asset Class
Strategy
$1.1 0.4% N/A
Total Fund* $290.5 100.0% 100.0%

1 Interim strategic targets adopted by the Investment Committee at the August 2011 Investment Committee meeting.
* Figures are rounded for viewing purposes.

Dated: 07-11-2014

(Source: WSJ,CalPERS)

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IPOX-linke​d U.S. IPO ETF (FPX) set to benefit as Facebook surges after earnings – Now matches Google post-IPO !!!

Post On July 24, 2014 by

Facebook stock gained +5.51% to USD 75.22 in after-hours trading, a new post- IPO high. An investment product set to benefit from Facebook’s surge is the USDm 487 First Trust U.S. IPO Fund (ticker: FPX), a five-star (3/5 years) fund. Linked to the IPOX U.S. 100 (IPXO) and launched in April 2006, the fund invests in the largest 100 U.S. domiciled IPOs and Spin-Offs using the IPOX Index technology, providing an asset allocation focused approach to the “going public” effect in respectiv...

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