GICS Changes: Introduction of the Communication Services Sector

GICS Changes: Introduction of the Communication Services Sector

October 2018
On September 28th the Global Industry Classification Standard (“GICS”) underwent a major structural change. The result of the change is the broadening and renaming of the Telecommunication Services sector, which is now known as Communication Services. The change is meant to acknowledge that the way people communicate, share information and entertain themselves has fundamentally changed, as a result of the convergence of technology, media and telecom. Our Rocaton Insights: GICS Changes: Introduction of the Communication Services Sector provides additional detail on this change and outlines potential implications for public equity portfolios.
 
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Implications of a Flat Yield Curve

September 2018
We are now at a point in which investors are receiving only modest compensation for moving further out on the Treasury yield curve. As the Federal Reserve continues to increase short-term interest rates, there is also the potential for the curve to invert. Regardless of the investor, we believe understanding the implications of holding fixed income at different points along the curve is critical given the range of investor objectives, the shape of the yield curve and the potentially disparate diversification benefits. Our Rocaton Insights: Implications of a Flat Yield Curve provides historical perspective on the shape of the yield curve and outlines potential strategies for different investor types.
 
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2018 CAPITAL MARKET OUTLOOK MID-YEAR UPDATE

June 2018

At the end of 2017, we described several themes which we believed would be important topics for investors in 2018 in our Insight title “2018 Capital Market Outlook.” As we near the halfway point of the year, we thought it would be useful to provide an update on those themes. In this paper we will also touch on two new themes which we believe are relevant for the remainder of the year.
 
 

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Constructing a Glide Path for Defined Benefit

June 2018

A glide path, in the context of a defined benefit pension plan, seeks to identify how a plan’s asset allocation will evolve over time as the plan’s funded status improves. The linked Insights outlines Rocaton’s principals for constructing a glide path. For those plan sponsors that have not yet embraced the concept of a glide path, but are contemplating implementing one, and for plans with an existing glide path, we feel that the these principles may serve as a helpful guide.

 

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The Case for Midstream Energy Equities

May 2018

MLPs (as well as other midstream companies structured as C-Corps), own, maintain and operate most of the energy infrastructure in North America. As oil prices declined sharply between late 2014 and early 2016, MLP and midstream equity prices also fell meaningfully. Despite a recent recovery in oil prices, the midstream energy sector has continued to fall. The linked Insights provides an overview of the midstream energy space, presents the case for making a near-term allocation, discusses potential risks and covers the potential implementation options for different investor types.

 

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Does Gold Belong in Your Portfolio?

March 2018

Should investors have an allocation to gold? The ambiguous movements in the price of gold are challenging to understand; however, amid the price gain in gold over the last two decades, the question of whether an investor should own gold is even more difficult to answer. The attached Insights seeks to address this question and also details how investors might gain exposure to gold.

 

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Rocaton’s Public Equity Investment Philosophy

February 2018

In a market environment characterized by richer valuations and lower yields, investors may feel the propensity to shift to riskier investments to generate higher returns. Rocaton believes that a well-structured public equity program has played and will continue to play an important role in the ability to meet longer-term objectives. In this edition of Insights, we outline our long-standing public equity investment philosophy, predicated on prudent use of active risk. Above all, Rocaton remains focused on creating customized solutions across our client base and we welcome more targeted discussions on how best to adapt our equity investment philosophy to your specific program.

 

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Tax Reform: A Guide for Investors

January 2018

The Tax Cuts and Jobs Acts is the most comprehensive piece of tax legislation since 1986. While most of the focus from market participants has been on the bill’s impact on the public equity market and individuals, other segments, such as fixed income markets, will be impacted.  The attached Insights outlines the potential impact on corporations and certain asset classes.

 

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2018 Capital Market Outlook

December 2017

Our annual Market Outlook provides a look ahead to 2018 and provides a review of our themes from this past year.  As you will notice, many of our themes this year reference the elevated valuations across most capital markets.

 

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Technological Change and its Impact on Financial Markets

December 2017
We believe technological change is one of the most impactful secular trends that will create new industries and eliminate others, impact productivity, and change our daily lives. Very rapid technological change has the potential to result in extreme investment outcomes (positive or negative) over long time horizons across many different sectors and asset classes. In the attached Insights, we outline the risk that technological change presents to investors and suggest ways to potentially mitigate this risk.
 

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