News
News
News

 

In a recent Wall Street Journal article titled “Bond Market Bloodbath Is in the Math,” Richard Barley discusses the current state of the bond market and the extent to which duration can impact future fixed income returns.  After a very strong 2014 and January 2015, global interest rates have charged higher in recent weeks – particularly on the long end of the yield curve.  Since the short end of the yield curve in most countries remains anchored at very low levels, long rates moving higher has resulted in a steeper yield curve.  In terms of bond performance, this translates into relatively stable performance from short dated (or lower duration) fixed income and much more volatile (and recently negative) performance from long dated, long duration bonds.  For more on this topic, check out the article below.

 

WSJ – Bond Market Bloodbath Is in the Math

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Commentary
Commentary

 

Japan is engaged in extremely aggressive monetary policy in the hopes of facilitating structural reforms in an economy that has stagnated for over two decades. There is a common belief that the Japanese equity market is rallying because international investors are trading into stocks while shorting the yen simply to take advantage of Japan’s QE program. Our Director of Research, Brendan Connor, recently returned from Tokyo with a fundamentally different impression and discusses the drivers and opportunity set in Japan today.

 

Thoughts on Japan
I recently spent a week in Japan meeting with a number of investment managers and business contacts. We discussed changes in the country which, upon further reflection, may seem less obvious to the outside world. This was confirmed in several meetings after I returned, where investors with some interest in Asia seemed completely unaware of the policy changes that have taken effect in the past several quarters. This is exciting stuff. Investors are clearly aware of Japan’s massive quantitative easing program and its effect on asset prices, but in my view, there are further nuances to this policy, and its channels, which investors have yet to fully appreciate.

Japan is not a place one considers ripe for rapid change. Over the past twenty years, Japan has been unable to sustain any significant economic reforms, generate growth, or keep a government in power. Since 1989, the average Japanese Prime Minister held the office for 560 days, with a median term of office of 418 days. Those figures drop materially if you exclude Junichiro Koizumi of the Liberal Democratic Party who held office for 1979 days. There have been five Prime Ministers in as many years since 2009! Returns on equity for Japanese equity markets have been among the lowest globally, while equity multiples reflect decades of mired performance. This was status quo in the memory of institutional investors globally.
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Events
Events
Events

 

On Tuesday, April 28, Hillview Capital Advisors supported the Child Center of NY (CCNY) at their Annual Spring Gala. Hillview’s CEO, David Spungen, was an honoree at the event for his dedication and support to CCNY over the past several years.

 

DMS - CCNY

David Spungen accepts his award from Traci Donnelly, Chief Executive Officer of CCNY

During the course of the evening, attendees heard personal stories from teachers and participants of CCNY programs, and the event culminated in an auction that raised funds to support their tremendous work.
CCNY new logo

About the Child Center of NY
Founded in 1953, The Child Center of NY is a leading nonprofit children’s agency that serves 18,000 children each year with early childhood education, mental health counseling, child abuse prevention, and a wide array of youth services. Its mission is to help at-risk children and youth succeed in life. To learn more, please visit www.childcenterny.org.

News
News
News

 

Bloomberg recently ran a piece entitled, How ‘Safe’ Investments Could Destroy Your Portfolio, focusing on strategies investors have historically pursued for income that could lead them astray in the current market environment.  Broadly speaking, we agree with the sentiment here.  Due to the U.S. Federal Reserve’s zero interest rate policy, investors have been pushed out the risk curve in order to meet their income requirements or total return expectations.  Thus, a normalization in Fed policy could prove problematic for certain “yield” assets such as dividend equities, high yield bonds, and other sorts of alternative income strategies.  We are attempting to mitigate these risks in our clients’ portfolios by shifting away from dividend equities and not taking on excess credit and/or interest rate risk in order to reach for yield .

Bloomberg – How ‘Safe’ Investments Could Destroy Your Portfolio

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Inside March’s Market Summary:

  • The Euro hits a 12 year low vs. the U.S. Dollar
  • Interest rate volatility is on the rise
  • Russia cracks down on internet memes
  • …and more

Please click the following link for more information: Hillview Market Summary – March 2015

We look forward to your questions and comments. Please feel free to reach out to us anytime.

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Commentary

 

The annual Heckerling Institute on Estate Planning is considered the pre-eminent trust and estate conference in the country. Danielle White, Vice President of Client Service at Hillview Capital Advisors, attended the week long gathering earlier this year where professionals discussed issues facing wealthy families and business owners; topics ranged from legal, tax, and accounting to cyber security. Summarized below are a few important takeaways from the conference resulting from new interpretations of existing laws and measures affecting wealth holders.

Since the indefinite extension of the lifetime estate exemption (currently $5.43m per person and $10.86m per married couple), Heckerling’s focus has transitioned from solely estate planning to one with an emphasis on income tax planning. The topics highlighted at this year’s conference that had the broadest application to wealth holders were that of portability, retirement planning, and a new topic called, “digital asset planning.”

 Read More…

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Commentary

The policies and conditions governing market behavior are evolving rapidly, and risk assets in the United States have outperformed their international counterparts for several years. Following that extended period of out-performance, our research team reexamines the case for a diversified global investment portfolio. Read More…