With the prospects of a significant rise in rates remote and volatility within the fixed income sectors tempered, Treasury Investment Managers' Peer Group members marked their 19th Annual Meeting, sponsored by Dimensional, by focusing on various ways to improve operationally and continued the discussion on adding yield to the investment portfolio in a low-rate environment.
Try to beat the market not outguess it. David Booth, Chairman and Co-Chief Executive of Dimensional Advisors, kicked off the conference outlining Dimensional’s investment philosophy, which is based on strong empirical support. Dimensional believes the market is a better analyst than any person, and uses the market to develop insights and calibrate risk.
Benchmarks provide the much needed measurement. A case was made that benchmarks may sway the motivations of the external managers, and not always in a positive manner. If this is the case, why do we use benchmarks?
Opinion on custodians was not pretty. The overwhelming majority of members rated their custodians as good, certainly not great. This is a surprise as the custodian is such an essential component of a successful investment program.
The fixed income big bang, TRACE. The veil of transparency has been lifted, notes Joe Kolerich from Dimensional. Trade Reporting and Compliance Engine (TRACE) is the FINRA developed vehicle that facilitates the mandatory reporting of over-the-counter secondary market transactions in eligible fixed income securities.
The Treasury Investment Managers’ Peer Group (TIMPG) is a membership group for practitioners with principal responsibility for managing the investment of excess cash at corporates with sizeable cash portfolios. Members meet to discuss topics on their agenda, share experiences and discuss solutions to common challenges.
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