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First Quarter 2017 Research Call Replay

Apr 20, 2017 / Portfolio Updates

This is a replay of our first quarter 2017 Litman Gregory research team webcast, held April 20, 2017. Topics covered (among others): managed futures strategies, international asset classes and currency impacts, and a brief update on our ESG research. The presentation slides are available at the bottom of the page under Resources.

 

Audio of the full call:
 
First Quarter Recap and Market Overview with Peter Sousa, Senior Research Consultant:
 
Do you have any thoughts on AQR Managed Futures Strategy HV, which continues to perform poorly? 
 
Some research suggests there is a diversification benefit from adding developed international fixed-income to portfolios. Why is there no dedicated international bond allocation in your models? What is the approximate international bond look-through exposure in the portfolios currently?
 
Currency trends seem to be beginning to reverse. Do you see that persisting and benefiting your international investments?
 
Your more conservative Index-Based models now have much higher expenses compared to a traditional indexed portfolio. Are you considering recommendations for a set of index products that could replace the actively managed bond funds in the Index-Based portfolios?
 
In the Index-Based model portfolios, why do you use broad, simple, market-cap-weighted index ETFs, rather than factor-based index funds?
 
In reading the first quarter 2017 investment commentary, it seems as if your view on the U.S. and global economies is improving? Does this impact the likelihood or weight that you give to the "muddle-through" scenario that has been your base case for some time?
 
When a public mutual fund is run by a manager who also runs a private hedge fund strategy, how do you determine whether the manager is reserving most of his best ideas for the hedge fund? Does that concern you?
 
What are your thoughts on the appeal and valuation of TIPS (inflation-linked bonds)?
 
Will you share a brief update on the work you've done on ESG managers since recommending TIAA-CREF Social Choice Bond?  
 
European small-cap stocks seem underfollowed and inefficient, ripe for active management. Do you see positive tradeoffs in European small caps, relative to the potential higher volatility?
 
By definition, managed futures strategies aren't based on fundamentals but by longer-term trends. Do you have confidence that trends will be favorable to managed futures over the next three to five years? If so, why?

 

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