Webinar Replay - Stock-Bond Correlation: A Global Perspective
Noah Weisberger & Bruce Phelps of PGIM IAS examined the historical pattern of stock-bond correlation across the globe.
As corporations migrate to defined contribution (DC) plans, asset allocators are increasingly interested in incorporating illiquid private assets in these retirement funds to offer participants the same menu of investment options as defined benefit (DB) plans.
Across the globe, multi-employer retirement plans such as Australian superannuation funds now operate in an increasingly dynamic and evolving market and regulatory environment. In addition, governments are encouraging plans to bolster retirement outcomes and support national economic growth by investing in illiquid private assets such as private equity, venture capital and infrastructure.
In an article originally published by the "Australian Financial Review," PGIM's Institutional Advisory & Solutions team (IAS) shares insights from its research on the the challenges presented by this evolving landscape and provides perspective on how investors can navigate the challenges of illiquid private assets, including uncertain cash flows, asset pacing and rebalancing.
The IAS team conducts bespoke, quantitative client research that focuses on asset allocation and portfolio analysis.
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Noah Weisberger & Bruce Phelps of PGIM IAS examined the historical pattern of stock-bond correlation across the globe.
DM local stock-bond correlations are determined by both local macroeconomic factors and common global macroeconomic factors.
Be wary of economic growth sensitivities in your real asset portfolios if the economic environment were to be stagflationary.