Research & Commentary

The tectonic shift in interest rates finally erupted in 2022, with several historic rate hikes that have significantly changed the investment horizon.

Wilshire Liquid Alternative Index℠ Returns -1.27% in December and 1.78% in the Fourth Quarter

The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.

In this quarter’s Investment Strategy Update, we evaluate the recent slowing in economic growth, discuss monetary policy, the potential path of inflation, and the impact on our outlook for fixed income given the recent correction in the valuations of corporate credit.

This is Wilshire’s 2022 Report on City & County Retirement Systems: Funding Levels and Asset Allocation, which reports theaggregate funded status of over 100 U.S. city- and county-sponsored defined benefit retirement systems. Wilshire has beencompiling these statistics since 1990.

The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.

In this quarter’s Investment Strategy Update, we evaluate the recent deterioration in economic growth, and distinguish the current environment from historical recessions. We also discuss the outlook for monetary policy, the potential path of inflation, and the impact on our outlook for global markets.

In this note, we utilize a generalization of Wilshire’s asset class grouping (i.e., bucketing) framework to examine the potential role of alternatives within institutional portfolios across two dimensions of diversification: 1) beta diversification (as noted above), and 2) implementation diversification (investing across the public/private liquidity spectrum).