DiMeo Schneider & Associates is committed to providing straightforward advice and practical intellectual capital to keep you informed and up-to-date. Browse through our research and resource center to find relevant information on a variety of topics including primary research and expert insights from our team of research professionals.

Research / White Papers
Practical, intellectual research on assorted subjects.

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Relevant articles and expert opinions.

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View our case studies.

Market Commentary
Concise review of equity, fixed income and other markets.

Knowledge College
Timely topics impacting the economy and capital markets.

• Why Diversify? Preview Download

  Historical Annual Asset Class Performance as of September 30th, 2010

  Download Research/White Paper
• Terminating Your DB Plan Preview Download

  The past decade has proven challenging to many defined benefit sponsors to say the least. Regulation changes, interest rate fluctuations and investment declines leave sponsors questioning the viability of their defined benefit (DB) plans. According to TowersWatson only 35% of Fortune 1000 companies still have...

  Download Research/White Paper
• Emerging Versus Developed Markets: A Blurred Line Preview Download

  Emerging countries continue to make headlines within the investment world, garnering attention for their economic growth prospects and correlating investment potential.   The appeal is somewhat surprising when you consider emerging market equities lost

  Download Research/White Paper
• Emerging Market Bonds Preview Download

   

   

  Emerging Market bonds are a growing sub-sector of the foreign debt market. Governments and businesses in Latin America, Eastern Europe, and Asia (ex-Japan) issue debt to finance fiscal deficits, infrastructure projects and business growth, as well as to sterilize large capital inflows and avoid intermediation uniquely in banks. Currently accounting for...

  Download Research/White Paper
• Update: Recent Sovereign Defaults and Greece Today Preview Download

  With sovereign borrowing dating back to the B.C. era, the world has a long history of sovereign defaults and their nasty aftershocks.

  Download Research/White Paper
• Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios Preview Download

  Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios

  Download Research/White Paper
• Legal and Compliance Update Fall 2011 Preview Download
  Download Research/White Paper
• The Implications of S&P's Downgrade of the United States Preview Download

  An overview of the S&P Downgrade.

  Download Research/White Paper
• Hedge Funds - Opportunities, Challenges and Market Evolution Preview Download
  Download Research/White Paper
• Japan Update Preview Download

  While the human tragedies in Japan are immeasurable and extremely adverse, we do want to provide clients with our latest thinking relating to the economy, the markets and their portfolio

  Download Research/White Paper
• Essential Economic & Market Update Preview Download

  A meaningful review of the economy and what to potentially expect as well as a timely update of DiMeo Schneider’s Capital Market Assumptions including new return expectations for several key asset classes.

  Download Research/White Paper
• Is it Really a Lost Decade? Preview Download

  While the past decade has endured two bear markets, the decade was not entirely lost...

  Download Research/White Paper
• DOL Participant Fee Disclosure Summary Preview Download

  A one page summary of the DOL's October 14th announcement regarding participant fee disclosures.

  Download Research/White Paper
• Legal & Compliance Update 3Q10 Preview Download
  Download Research/White Paper
• The Next Chapter in the Active versus Passive Debate (2010 Update) Preview Download

  In March 2007, we authored “The Next Chapter in the Active versus Passive Management Debate,” where we evaluated the persistency of top quartile mutual funds in 17 different categories during the ten-year period ending December 2006.  Having updated that study through the ten-year period ending December 2009, our key observations remain largely unchanged.

  Download Research/White Paper
• Evaluating the Roth IRA Conversion Preview Download
  Download Research/White Paper
• Gold Rush Preview Download

  In this short piece, we examine the history of the yellow metal, what may be driving current prices, and how investors can access the commodity to diversify their portfolios.

  Download Research/White Paper
• It's Time To Sell Stocks! Well Maybe... (VIDEO) Preview Download

  Length:  8 minute video presentation
  Category:  Risk Management
  Audience:  All investors including Plan Sponsors, Non-profit Organizations and Individuals Investors
  Author:  Robert DiMeo, CIMA®, Managing Director

  If you are having problems viewing the video please upgrade to the latest free version of Microsoft QuickTime at http://www.apple.com/quicktime/download/

  Download Research/White Paper
• Capital Markets & Taxicab Rides Preview Download

  Elegantly precise theories can be very compelling, especially if you ignore certain facts. Unfortunately, empirical observation of capital market behavior (and yes, taxicab rides) conflicts with three key Modern Portfolio Theory assumptions. Rather than just throw stones at the efficient frontier framework, we will explore a more accurate, but less mathematically precise framework that seeks to accommodate a truer picture of capital markets behavior. Such a framework must more accurately quantify risk and improve (true) risk-adjusted performance.

  Download Research/White Paper
• A Practical Guide for Stunned Investment Committees Preview Download

  Effective Investment Oversight in Difficult Times.

  Download Research/White Paper
• The Panic-Proof Portfolio Preview Download

  A Bear Attack Survival Guide

  Download Research/White Paper
• Sure I Want to Lose Weight and Other Half-Truths Preview Download

  A group of nuns recently asked me to participate in a meeting with their pension provider to determine whether to change their asset allocation policy.  Like most pensions, their plan suffered losses over the past 18 months.  The vendor led the committee through a series of canned questions about risk tolerance and their objectives…

  Download Research/White Paper
• Hiring an Investment Management Consultant (Chapter 16) Preview Download

  An excerpt from “The Practical Guide to Managing Nonprofit Assets”, Schneider, William A, Robert A. DiMeo, and Michael S. Benoit.  New Jersey:  John Wiley & Sons, Inc. 2005.

  Download Research/White Paper
• A Better Target Date Fund (The "Better Mousetrap") Preview Download

  Target date funds are part of a major paradigm shift in how participants invest in 401(k) plans.  According to a recent Hewitt study, 57% of plan sponsors currently offer target date funds.  Moreover, the Pension Protection Act’s establishment of target date funds as a QDIA (Qualified Default Investment Alternative) should accelerate their use by plan sponsors and participants.

  Download Research/White Paper
• REIT Valuations Approaching the Stratosphere Preview Download

  Since the beginning of the last bear market, REITS have generated an impressive 22.6% annualized total return (from August 2000 – December 2006). With the exception of emerging markets, REITs have been the strongest performer, outperforming the next closest asset class by over 6% per year.

  Download Research/White Paper
• The Next Chapter in the Active vs. Passive Management Debate Preview Download

  We are not so bold as to attempt to settle the active vs. passive debate. However, we hope our observations will help you determine where active and passive management is appropriate for your portfolio.

  Download Research/White Paper
• International REITs Preview Download

  In various forms, real estate has been used to diversify portfolios for decades. As recently as 1960, domestic real estate investments were only available to wealthy individuals or corporations with the financial resources to invest in shopping malls, office buildings, raw land, hotels and health care facilities.

  Download Research/White Paper
• A Practical and Portable Alpha Application for Institutional Investors Preview Download

  Broad stock market index exposure, also known as beta, is almost free. For example, the Vanguard Institutional S&P 500 Index fund is priced at 0.05% on assets per year. While indexing may seem quaint, the Vanguard Institutional Index has beaten almost 180% of surviving large cap blend mutual funds over the last decade. And as the investment time period increases, fewer and fewer active managers have added alpha to the S&P 500 Index after expenses.

  Download Research/White Paper
• The Low Volatility Dividend Preview Download

  Diversification not only reduces risk, but can be an important tool for increasing a portfolio’s expected long-term return. Reducing a portfolio’s volatility by adding a low-correlating investment can markedly improve a portfolio’s expected long-term return, even if the new investment does not have a higher expected return than the investment it replaced. How is it possible for a portfolio to have a higher expected return than the sum of its parts? The first step in understanding the Low Volatility Dividend is to differentiate Arithmetic and Geometric investment returns.

  Download Research/White Paper
• Energy Infrastructure MLPs Preview Download
  Download Research/White Paper

Exclusive Tools

• Ten Year Capital Market Forecasts Preview

  Asset Class Returns, Standard Deviations & Correlations Assumptions.

  *Intended for use by clients and prospective clients only.

• Why Diversify? Preview Download

  Historical Annual Asset Class Performance as of September 30th, 2010

  Download Research/White Paper
• Emerging Versus Developed Markets: A Blurred Line Preview Download

  Emerging countries continue to make headlines within the investment world, garnering attention for their economic growth prospects and correlating investment potential.   The appeal is somewhat surprising when you consider emerging market equities lost

  Download Research/White Paper
• Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios Preview Download

  Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios

  Download Research/White Paper
• Legal and Compliance Update Fall 2011 Preview Download
  Download Research/White Paper
• Retirement Readiness Round Table Transcript Preview Download

  Retirement Readiness: A Profound Challenge for Employers, Financial Advisors, Government, Society and Individual Retirees.

  Jim Modelski, CFS, Principal, participated in the M&I Institutional Trust Services Roundtable – Click download to view the full transcript.

  Download Research/White Paper
• Japan Update Preview Download

  While the human tragedies in Japan are immeasurable and extremely adverse, we do want to provide clients with our latest thinking relating to the economy, the markets and their portfolio

  Download Research/White Paper
• Essential Economic & Market Update Preview Download

  A meaningful review of the economy and what to potentially expect as well as a timely update of DiMeo Schneider’s Capital Market Assumptions including new return expectations for several key asset classes.

  Download Research/White Paper
• Is it Really a Lost Decade? Preview Download

  While the past decade has endured two bear markets, the decade was not entirely lost...

  Download Research/White Paper
• Legal & Compliance Update 3Q10 Preview Download
  Download Research/White Paper
• 401(k) Fee Considerations Preview Download

  Length:  5 minute video presentation
  Category:  Fiduciary Responsibility
  Audience:  Plan Sponsors
  Author:  Steve Dufault, CIMA

  If you are having problems viewing the video please upgrade to the latest free version of Microsoft QuickTime at http://www.apple.com/quicktime/download/

  Download Research/White Paper
• The Next Chapter in the Active versus Passive Debate (2010 Update) Preview Download

  In March 2007, we authored “The Next Chapter in the Active versus Passive Management Debate,” where we evaluated the persistency of top quartile mutual funds in 17 different categories during the ten-year period ending December 2006.  Having updated that study through the ten-year period ending December 2009, our key observations remain largely unchanged.

  Download Research/White Paper
• Capital Markets & Taxicab Rides Preview Download

  Elegantly precise theories can be very compelling, especially if you ignore certain facts. Unfortunately, empirical observation of capital market behavior (and yes, taxicab rides) conflicts with three key Modern Portfolio Theory assumptions. Rather than just throw stones at the efficient frontier framework, we will explore a more accurate, but less mathematically precise framework that seeks to accommodate a truer picture of capital markets behavior. Such a framework must more accurately quantify risk and improve (true) risk-adjusted performance.

  Download Research/White Paper
• Is it Time To Be Tactical? Preview Download

  With a backdrop of the financial meltdown of 2007 – 2009, the idea of tactical asset allocation (TAA) is once again gaining traction.  The siren song is almost irresistible. “Get out to avoid losses, and then hop back in to catch the gains.” 

  Download Research/White Paper
• Education after the Crisis: A Refocus on Risk and Time Horizon Preview Download

  During the recent global stock market and economic downturn, investors lost over a trillion dollars in retirement savings.  Countless newspaper articles and television shows carried stories of those near retirement who lost 30% or more of their nest egg because of failure to manage risk and/or changes in time horizon.

  Download Research/White Paper
• Changes are coming for 403(b) Plans Preview Download

  With the recent passage of the Pension Protection Act (PPA), the congress’ Department of Labor, and the IRS have, in effect, recognized that the traditional defined benefit plan is in a decline. The PPA also acknowledged that employersponsored defined contribution plans will be critical to American workforce’s ability to live comfortably in retirement. In the healthcare and nonprofit world, 403(b) plans will often be that plan.

  Download Research/White Paper
• Target Date Funds – What You Need to Know Preview Download

  Target date funds came to the marketplace in the mid-1990’s and until 2005 had not received much attention or asset growth. During this time, the retirement landscape has shifted from predominantly defined benefit plans to defined contribution plans.

  Download Research/White Paper
• Future of Stable Value Preview Download

  The upheaval in the fixed income markets due to the credit crisis has placed great strain on many stable value funds held in retirement plans.  Stable value funds typically represent a retirement plan’s most conservative investment option, with participants generally considering them as higher yielding money market substitutes.  However, both plan sponsors and participants may have a misperception that these investments can’t lose principal.

  Download Research/White Paper
• The Impact of New 403(b) Regulations Preview Download

  Most are already aware of the final Internal Revenue Service regulations as they relate to 403(b) retirement plans, particularly the significant increase in plan oversight.  Fortunately, for some unprepared plan sponsors, the IRS delayed the implementation of certain requirements of the final 403(b) regulations that were otherwise effective as of January 1, 2009 until as late as December 31, 2009.

  Download Research/White Paper
• Sure I Want to Lose Weight and Other Half-Truths Preview Download

  A group of nuns recently asked me to participate in a meeting with their pension provider to determine whether to change their asset allocation policy.  Like most pensions, their plan suffered losses over the past 18 months.  The vendor led the committee through a series of canned questions about risk tolerance and their objectives…

  Download Research/White Paper
• Avoid the Five Bear Market Mistakes Preview Download

  Bear markets bring out the worst in investors because our natural “fight or flight” emotions leave us almost hardwired to lose money.  In fact, an old Wall Street adage is “A bear market is when money returns to its rightful owners” – those who are psychologically prepared to buy when everyone else is selling.

  Download Research/White Paper
• Market Volatility and its Impact on Defined Contributions Plans Preview Download

  In spite of the market turmoil over the past several months, it appears most 401k plans and their participants are not making drastic changes.  From a plan sponsor perspective, recent data suggests that the vast majority of plan sponsors are not making changes to their matching contribution formulas amid the economic downturn.

  Download Research/White Paper
• Hiring an Investment Management Consultant (Chapter 16) Preview Download

  An excerpt from “The Practical Guide to Managing Nonprofit Assets”, Schneider, William A, Robert A. DiMeo, and Michael S. Benoit.  New Jersey:  John Wiley & Sons, Inc. 2005.

  Download Research/White Paper
• New Rules for Disclosure of Plan Fees to Participants Preview Download

  The Department of Labor (DOL) recently released proposed rules for disclosure of plan fees to participants.  These regulations have been widely anticipated and are intended to provide participants with pertinent fee information to assist in their investment decisions.

  Download Research/White Paper
• PIMCO Dialogue - Keep the baby. Lose the bath water. Preview Download

  In this PIMCO DC Dialogue, DiMeo Schneider & Associates, L.L.C.'s Chief Research Officer, Matt Rice, CFA, discusses the evolution of defined contribution plan investment structures.  He shares his experience in working with plans of all sizes in establishing custom target-date strategies.

  Download Research/White Paper
• Diversification Stands the Test of Time Preview Download

  Some of the most successful investors for the past year were invested in U.S. Treasuries, commodities and Treasury Inflation Protected Securities (TIPs). It was the perfect environment for intermediate-term Treasuries with declining rates and a flight to quality, which led to returns of 12%.
   

  Download Research/White Paper
• The Next Phase in Defined Contribution Plans Preview Download

  We are now entering the next phase in a massive paradigm shift that began in 1982, the year the first 401(k) plan came into existence. (According to the Center for Retirement Research at Boston College.)  In 1980 85% of workers were covered by a traditional Defined Benefit (DB) plan but by 2004 that percentage had dropped to 37% and is still falling. Our elected representatives have “protected” the DB plan into extinction.

  Download Research/White Paper
• A Better Target Date Fund (The "Better Mousetrap") Preview Download

  Target date funds are part of a major paradigm shift in how participants invest in 401(k) plans.  According to a recent Hewitt study, 57% of plan sponsors currently offer target date funds.  Moreover, the Pension Protection Act’s establishment of target date funds as a QDIA (Qualified Default Investment Alternative) should accelerate their use by plan sponsors and participants.

  Download Research/White Paper
• Five Steps to a Better 403(b) Plan Preview Download

  The Pension Protection Act of 2006 acknowledged that employer-sponsored defined contribution plans will be critical to the American workforce’s ability to live comfortably in retirement. In the nonprofit world, 403(b) plans will often be that plan.

  Download Research/White Paper
• REIT Valuations Approaching the Stratosphere Preview Download

  Since the beginning of the last bear market, REITS have generated an impressive 22.6% annualized total return (from August 2000 – December 2006). With the exception of emerging markets, REITs have been the strongest performer, outperforming the next closest asset class by over 6% per year.

  Download Research/White Paper
• The Next Chapter in the Active vs. Passive Management Debate Preview Download

  We are not so bold as to attempt to settle the active vs. passive debate. However, we hope our observations will help you determine where active and passive management is appropriate for your portfolio.

  Download Research/White Paper
• International REITs Preview Download

  In various forms, real estate has been used to diversify portfolios for decades. As recently as 1960, domestic real estate investments were only available to wealthy individuals or corporations with the financial resources to invest in shopping malls, office buildings, raw land, hotels and health care facilities.

  Download Research/White Paper
• A Practical and Portable Alpha Application for Institutional Investors Preview Download

  Broad stock market index exposure, also known as beta, is almost free. For example, the Vanguard Institutional S&P 500 Index fund is priced at 0.05% on assets per year. While indexing may seem quaint, the Vanguard Institutional Index has beaten almost 180% of surviving large cap blend mutual funds over the last decade. And as the investment time period increases, fewer and fewer active managers have added alpha to the S&P 500 Index after expenses.

  Download Research/White Paper
• The Low Volatility Dividend Preview Download

  Diversification not only reduces risk, but can be an important tool for increasing a portfolio’s expected long-term return. Reducing a portfolio’s volatility by adding a low-correlating investment can markedly improve a portfolio’s expected long-term return, even if the new investment does not have a higher expected return than the investment it replaced. How is it possible for a portfolio to have a higher expected return than the sum of its parts? The first step in understanding the Low Volatility Dividend is to differentiate Arithmetic and Geometric investment returns.

  Download Research/White Paper

• Why Diversify? Preview Download

  Historical Annual Asset Class Performance as of September 30th, 2010

  Download Research/White Paper
• Terminating Your DB Plan Preview Download

  The past decade has proven challenging to many defined benefit sponsors to say the least. Regulation changes, interest rate fluctuations and investment declines leave sponsors questioning the viability of their defined benefit (DB) plans. According to TowersWatson only 35% of Fortune 1000 companies still have...

  Download Research/White Paper
• Emerging Versus Developed Markets: A Blurred Line Preview Download

  Emerging countries continue to make headlines within the investment world, garnering attention for their economic growth prospects and correlating investment potential.   The appeal is somewhat surprising when you consider emerging market equities lost

  Download Research/White Paper
• Update: Recent Sovereign Defaults and Greece Today Preview Download

  With sovereign borrowing dating back to the B.C. era, the world has a long history of sovereign defaults and their nasty aftershocks.

  Download Research/White Paper
• Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios Preview Download

  Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios

  Download Research/White Paper
• Legal and Compliance Update Fall 2011 Preview Download
  Download Research/White Paper
• Hedge Funds - Opportunities, Challenges and Market Evolution Preview Download
  Download Research/White Paper
• Japan Update Preview Download

  While the human tragedies in Japan are immeasurable and extremely adverse, we do want to provide clients with our latest thinking relating to the economy, the markets and their portfolio

  Download Research/White Paper
• Essential Economic & Market Update Preview Download

  A meaningful review of the economy and what to potentially expect as well as a timely update of DiMeo Schneider’s Capital Market Assumptions including new return expectations for several key asset classes.

  Download Research/White Paper
• Is it Really a Lost Decade? Preview Download

  While the past decade has endured two bear markets, the decade was not entirely lost...

  Download Research/White Paper
• Legal & Compliance Update 3Q10 Preview Download
  Download Research/White Paper
• The Next Chapter in the Active versus Passive Debate (2010 Update) Preview Download

  In March 2007, we authored “The Next Chapter in the Active versus Passive Management Debate,” where we evaluated the persistency of top quartile mutual funds in 17 different categories during the ten-year period ending December 2006.  Having updated that study through the ten-year period ending December 2009, our key observations remain largely unchanged.

  Download Research/White Paper
• Capital Markets & Taxicab Rides Preview Download

  Elegantly precise theories can be very compelling, especially if you ignore certain facts. Unfortunately, empirical observation of capital market behavior (and yes, taxicab rides) conflicts with three key Modern Portfolio Theory assumptions. Rather than just throw stones at the efficient frontier framework, we will explore a more accurate, but less mathematically precise framework that seeks to accommodate a truer picture of capital markets behavior. Such a framework must more accurately quantify risk and improve (true) risk-adjusted performance.

  Download Research/White Paper
• A Practical Guide for Stunned Investment Committees Preview Download

  Effective Investment Oversight in Difficult Times.

  Download Research/White Paper
• Is it Time To Be Tactical? Preview Download

  With a backdrop of the financial meltdown of 2007 – 2009, the idea of tactical asset allocation (TAA) is once again gaining traction.  The siren song is almost irresistible. “Get out to avoid losses, and then hop back in to catch the gains.” 

  Download Research/White Paper
• Education after the Crisis: A Refocus on Risk and Time Horizon Preview Download

  During the recent global stock market and economic downturn, investors lost over a trillion dollars in retirement savings.  Countless newspaper articles and television shows carried stories of those near retirement who lost 30% or more of their nest egg because of failure to manage risk and/or changes in time horizon.

  Download Research/White Paper
• Future of Stable Value Preview Download

  The upheaval in the fixed income markets due to the credit crisis has placed great strain on many stable value funds held in retirement plans.  Stable value funds typically represent a retirement plan’s most conservative investment option, with participants generally considering them as higher yielding money market substitutes.  However, both plan sponsors and participants may have a misperception that these investments can’t lose principal.

  Download Research/White Paper
• Sure I Want to Lose Weight and Other Half-Truths Preview Download

  A group of nuns recently asked me to participate in a meeting with their pension provider to determine whether to change their asset allocation policy.  Like most pensions, their plan suffered losses over the past 18 months.  The vendor led the committee through a series of canned questions about risk tolerance and their objectives…

  Download Research/White Paper
• Avoid the Five Bear Market Mistakes Preview Download

  Bear markets bring out the worst in investors because our natural “fight or flight” emotions leave us almost hardwired to lose money.  In fact, an old Wall Street adage is “A bear market is when money returns to its rightful owners” – those who are psychologically prepared to buy when everyone else is selling.

  Download Research/White Paper
• Hiring an Investment Management Consultant (Chapter 16) Preview Download

  An excerpt from “The Practical Guide to Managing Nonprofit Assets”, Schneider, William A, Robert A. DiMeo, and Michael S. Benoit.  New Jersey:  John Wiley & Sons, Inc. 2005.

  Download Research/White Paper
• Diversification Stands the Test of Time Preview Download

  Some of the most successful investors for the past year were invested in U.S. Treasuries, commodities and Treasury Inflation Protected Securities (TIPs). It was the perfect environment for intermediate-term Treasuries with declining rates and a flight to quality, which led to returns of 12%.
   

  Download Research/White Paper
• A Practical Liability-Minded Investment Approach for Pension Plans Preview Download

  Several developments are driving the recent publicity on Liability-Driven Investing.  On the legislative and regulatory fronts, passage of the long-anticipated Pension Protection Act and changes to FASB pension accounting rules will result in a greater “marking-to-market” of pension assets and liabilities, increasing both the volatility of minimum funding contributions and impacts to the balance sheet.  As a result, plan sponsors are accelerating their exodus from defined benefit plans, which creates another issue of its own.  Namely, a first step to get out of a defined benefit plan (and ultimately transfer pension obligations to an insurance company) is to freeze future benefit accruals.  This turns an infinite investment period into a relatively short and quantifiable time-horizon.  Like any other investor, a shortening time horizon reduces the ability of a pension fund to absorb short-term investment losses relative to liabilities.

  Download Research/White Paper
• REIT Valuations Approaching the Stratosphere Preview Download

  Since the beginning of the last bear market, REITS have generated an impressive 22.6% annualized total return (from August 2000 – December 2006). With the exception of emerging markets, REITs have been the strongest performer, outperforming the next closest asset class by over 6% per year.

  Download Research/White Paper
• The Next Chapter in the Active vs. Passive Management Debate Preview Download

  We are not so bold as to attempt to settle the active vs. passive debate. However, we hope our observations will help you determine where active and passive management is appropriate for your portfolio.

  Download Research/White Paper
• International REITs Preview Download

  In various forms, real estate has been used to diversify portfolios for decades. As recently as 1960, domestic real estate investments were only available to wealthy individuals or corporations with the financial resources to invest in shopping malls, office buildings, raw land, hotels and health care facilities.

  Download Research/White Paper
• A Practical and Portable Alpha Application for Institutional Investors Preview Download

  Broad stock market index exposure, also known as beta, is almost free. For example, the Vanguard Institutional S&P 500 Index fund is priced at 0.05% on assets per year. While indexing may seem quaint, the Vanguard Institutional Index has beaten almost 180% of surviving large cap blend mutual funds over the last decade. And as the investment time period increases, fewer and fewer active managers have added alpha to the S&P 500 Index after expenses.

  Download Research/White Paper
• The Low Volatility Dividend Preview Download

  Diversification not only reduces risk, but can be an important tool for increasing a portfolio’s expected long-term return. Reducing a portfolio’s volatility by adding a low-correlating investment can markedly improve a portfolio’s expected long-term return, even if the new investment does not have a higher expected return than the investment it replaced. How is it possible for a portfolio to have a higher expected return than the sum of its parts? The first step in understanding the Low Volatility Dividend is to differentiate Arithmetic and Geometric investment returns.

  Download Research/White Paper

• Why Diversify? Preview Download

  Historical Annual Asset Class Performance as of September 30th, 2010

  Download Research/White Paper
• Emerging Versus Developed Markets: A Blurred Line Preview Download

  Emerging countries continue to make headlines within the investment world, garnering attention for their economic growth prospects and correlating investment potential.   The appeal is somewhat surprising when you consider emerging market equities lost

  Download Research/White Paper
• Update: Recent Sovereign Defaults and Greece Today Preview Download

  With sovereign borrowing dating back to the B.C. era, the world has a long history of sovereign defaults and their nasty aftershocks.

  Download Research/White Paper
• Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios Preview Download

  Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios

  Download Research/White Paper
• Hedge Funds - Opportunities, Challenges and Market Evolution Preview Download
  Download Research/White Paper
• Japan Update Preview Download

  While the human tragedies in Japan are immeasurable and extremely adverse, we do want to provide clients with our latest thinking relating to the economy, the markets and their portfolio

  Download Research/White Paper
• Essential Economic & Market Update Preview Download

  A meaningful review of the economy and what to potentially expect as well as a timely update of DiMeo Schneider’s Capital Market Assumptions including new return expectations for several key asset classes.

  Download Research/White Paper
• Is it Really a Lost Decade? Preview Download

  While the past decade has endured two bear markets, the decade was not entirely lost...

  Download Research/White Paper
• Investment Management Code of Coduct for Endowments, Foundations and Charitable Organizations Preview Download

  Investment Management Code of Coduct for Endowments, Foundations and Charitable Organizations

  Download Research/White Paper
• The Next Chapter in the Active versus Passive Debate (2010 Update) Preview Download

  In March 2007, we authored “The Next Chapter in the Active versus Passive Management Debate,” where we evaluated the persistency of top quartile mutual funds in 17 different categories during the ten-year period ending December 2006.  Having updated that study through the ten-year period ending December 2009, our key observations remain largely unchanged.

  Download Research/White Paper
• Gold Rush Preview Download

  In this short piece, we examine the history of the yellow metal, what may be driving current prices, and how investors can access the commodity to diversify their portfolios.

  Download Research/White Paper
• Capital Markets & Taxicab Rides Preview Download

  Elegantly precise theories can be very compelling, especially if you ignore certain facts. Unfortunately, empirical observation of capital market behavior (and yes, taxicab rides) conflicts with three key Modern Portfolio Theory assumptions. Rather than just throw stones at the efficient frontier framework, we will explore a more accurate, but less mathematically precise framework that seeks to accommodate a truer picture of capital markets behavior. Such a framework must more accurately quantify risk and improve (true) risk-adjusted performance.

  Download Research/White Paper
• A Practical Guide for Stunned Investment Committees Preview Download

  Effective Investment Oversight in Difficult Times.

  Download Research/White Paper
• 403(b) Plans: What to Know About Target-Date Funds Preview Download

  The use of Target-Date funds has significantly increased among 403(b) plan sponsors and so have their duties and responsibilities. According to the 403(b) Target Date Fund Survey conducted by the Profit Sharing/401(k) Council of America, 50% of respondents now offer Target-Date funds and 20% more are considering adding them sometime in the future. In addition, Target-Date funds are now the most prevalent default fund for automatic deferrals within 403(b) plans.

  Download Research/White Paper
• Beyond the Numbers: When to Fire an Investment Manager Preview Download

  Numerous studies have shown it is inevitable that even top-performing investment managers suffer stretches of underperformance.  The markets of 2008 provided serious headwinds to active management.  After prudently selecting a manager, returns begin falling short over multiple time periods.  Thorough manager analysis should occur regularly regardless of performance but if a manager’s returns fail to outperform on a consistent basis, when is it time to fire an investment manager?  While no single reason dictates automatic termination of a manager, diligent Sponsors and Trustees of retirement plans, pension plans, endowments, foundations and unions should look beyond the numbers and analyze several key areas to determine the next course of action.

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• Digging out from Bear Markets – What History Tells Us Preview Download

  The debate is on as to whether we are in a U-shaped, V-shaped, full-blown recovery, or if we are just being lured back in before another sell-off.  Regardless of where we are in the market cycle, several things tend to have held true through past bear markets.

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• Changes are coming for 403(b) Plans Preview Download

  With the recent passage of the Pension Protection Act (PPA), the congress’ Department of Labor, and the IRS have, in effect, recognized that the traditional defined benefit plan is in a decline. The PPA also acknowledged that employersponsored defined contribution plans will be critical to American workforce’s ability to live comfortably in retirement. In the healthcare and nonprofit world, 403(b) plans will often be that plan.

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• The Impact of New 403(b) Regulations Preview Download

  Most are already aware of the final Internal Revenue Service regulations as they relate to 403(b) retirement plans, particularly the significant increase in plan oversight.  Fortunately, for some unprepared plan sponsors, the IRS delayed the implementation of certain requirements of the final 403(b) regulations that were otherwise effective as of January 1, 2009 until as late as December 31, 2009.

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• Sure I Want to Lose Weight and Other Half-Truths Preview Download

  A group of nuns recently asked me to participate in a meeting with their pension provider to determine whether to change their asset allocation policy.  Like most pensions, their plan suffered losses over the past 18 months.  The vendor led the committee through a series of canned questions about risk tolerance and their objectives…

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• Hiring an Investment Management Consultant (Chapter 16) Preview Download

  An excerpt from “The Practical Guide to Managing Nonprofit Assets”, Schneider, William A, Robert A. DiMeo, and Michael S. Benoit.  New Jersey:  John Wiley & Sons, Inc. 2005.

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• Markets Causing You to Lose Sleep? Preview Download

  The state of the capital markets may have you up nights worrying about the health and security of your organization’s investment portfolio. The housing crisis has deepened, volatility in the equity markets has soared, and a massive government rescue program appears imminent. However, this is not the first nor will it be the last time that we will experience a low probability, but high consequence “fat tail” event. The Savings and Loan (S&L) crisis in the 1980’s, the 1987 market crash, the 1997 Asian financial crisis, the bursting of the tech bubble in 2000 and the attacks of September 11, 2001 are a few examples from the past 30 years. Through all of this, the financial system has proven remarkably resilient and adaptable.

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• ETN’s - Proceed with Caution Preview Download

  In today’s world of ever evolving investment products, Exchange Traded Notes (ETNs) followed their much-hyped cousins, Exchange Traded Funds (ETFs), into the marketplace.  They are heralded as an efficient and inexpensive way to gain exposure to certain investment strategies. Structurally, ETNs are senior, unsecured, unsubordinated debt securities issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer.

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• New Rules for Disclosure of Plan Fees to Participants Preview Download

  The Department of Labor (DOL) recently released proposed rules for disclosure of plan fees to participants. These regulations have been widely anticipated and are intended to provide participants with pertinent fee information to assist in their investment decisions.

   

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• An Overview of Spending Policy Preview Download

  With lower return expectations, many nonprofits question their current spending rates.  A related question may also be whether the current spending policy methodology is appropriate in volatile markets.

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• A Better Target Date Fund (The "Better Mousetrap") Preview Download

  Target date funds are part of a major paradigm shift in how participants invest in 401(k) plans.  According to a recent Hewitt study, 57% of plan sponsors currently offer target date funds.  Moreover, the Pension Protection Act’s establishment of target date funds as a QDIA (Qualified Default Investment Alternative) should accelerate their use by plan sponsors and participants.

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• Five Steps to a Better 403(b) Plan Preview Download

  The Pension Protection Act of 2006 acknowledged that employer-sponsored defined contribution plans will be critical to the American workforce’s ability to live comfortably in retirement. In the nonprofit world, 403(b) plans will often be that plan.

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• REIT Valuations Approaching the Stratosphere Preview Download

  Since the beginning of the last bear market, REITS have generated an impressive 22.6% annualized total return (from August 2000 – December 2006). With the exception of emerging markets, REITs have been the strongest performer, outperforming the next closest asset class by over 6% per year.

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• The Next Chapter in the Active vs. Passive Management Debate Preview Download

  We are not so bold as to attempt to settle the active vs. passive debate. However, we hope our observations will help you determine where active and passive management is appropriate for your portfolio.

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• International REITs Preview Download

  In various forms, real estate has been used to diversify portfolios for decades. As recently as 1960, domestic real estate investments were only available to wealthy individuals or corporations with the financial resources to invest in shopping malls, office buildings, raw land, hotels and health care facilities.

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• A Practical and Portable Alpha Application for Institutional Investors Preview Download

  Broad stock market index exposure, also known as beta, is almost free. For example, the Vanguard Institutional S&P 500 Index fund is priced at 0.05% on assets per year. While indexing may seem quaint, the Vanguard Institutional Index has beaten almost 180% of surviving large cap blend mutual funds over the last decade. And as the investment time period increases, fewer and fewer active managers have added alpha to the S&P 500 Index after expenses.

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• The Low Volatility Dividend Preview Download

  Diversification not only reduces risk, but can be an important tool for increasing a portfolio’s expected long-term return. Reducing a portfolio’s volatility by adding a low-correlating investment can markedly improve a portfolio’s expected long-term return, even if the new investment does not have a higher expected return than the investment it replaced. How is it possible for a portfolio to have a higher expected return than the sum of its parts? The first step in understanding the Low Volatility Dividend is to differentiate Arithmetic and Geometric investment returns.

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• Why Diversify? Preview Download

  Historical Annual Asset Class Performance as of September 30th, 2010

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• Financial Planning Considerations for 2012 Preview Download

  The New Year brings new changes to a variety of financial planning topics such as investing, tax planning and estate planning. The Wealth Office™ encourages and assists clients in addressing these issues...

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• Emerging Versus Developed Markets: A Blurred Line Preview Download

  Emerging countries continue to make headlines within the investment world, garnering attention for their economic growth prospects and correlating investment potential.   The appeal is somewhat surprising when you consider emerging market equities lost

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• Update: Recent Sovereign Defaults and Greece Today Preview Download

  With sovereign borrowing dating back to the B.C. era, the world has a long history of sovereign defaults and their nasty aftershocks.

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• Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios Preview Download

  Real Assets - The Role of Intrinsically Valuable Assets in Diversified Portfolios

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• Hedge Funds - Opportunities, Challenges and Market Evolution Preview Download
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• Japan Update Preview Download

  While the human tragedies in Japan are immeasurable and extremely adverse, we do want to provide clients with our latest thinking relating to the economy, the markets and their portfolio

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• Essential Economic & Market Update Preview Download

  A meaningful review of the economy and what to potentially expect as well as a timely update of DiMeo Schneider’s Capital Market Assumptions including new return expectations for several key asset classes.

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• Is it Really a Lost Decade? Preview Download

  While the past decade has endured two bear markets, the decade was not entirely lost...

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• The Next Chapter in the Active versus Passive Debate (2010 Update) Preview Download

  In March 2007, we authored “The Next Chapter in the Active versus Passive Management Debate,” where we evaluated the persistency of top quartile mutual funds in 17 different categories during the ten-year period ending December 2006.  Having updated that study through the ten-year period ending December 2009, our key observations remain largely unchanged.

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• Evaluating the Roth IRA Conversion Preview Download
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• Gold Rush Preview Download

  In this short piece, we examine the history of the yellow metal, what may be driving current prices, and how investors can access the commodity to diversify their portfolios.

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• Capital Markets & Taxicab Rides Preview Download

  Elegantly precise theories can be very compelling, especially if you ignore certain facts. Unfortunately, empirical observation of capital market behavior (and yes, taxicab rides) conflicts with three key Modern Portfolio Theory assumptions. Rather than just throw stones at the efficient frontier framework, we will explore a more accurate, but less mathematically precise framework that seeks to accommodate a truer picture of capital markets behavior. Such a framework must more accurately quantify risk and improve (true) risk-adjusted performance.

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• Family Loans Preview Download

  Many people borrow money from family members for things like a down payment on a house. A family loan can be easier to get, and have better terms, than a loan from a traditional source. But there are also potential pitfalls, for both the lender and the recipient.

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• Charitable Giving: Donor-Advised Funds vs. Private Foundations Preview Download

  While private foundations date back as far as the early 1900s, the advent of donor-advised funds goes back less than 20 years. In fact, chances are good that you may have never even heard of a donor-advised fund. A Fidelity survey of more than 500 individuals with at least $100,000 in assets found that 86% reported that they either had not heard of or knew very little about donor-advised funds. While private foundations may offer more control with regard to investment selection and distributions, they certainly come with their set of limitations; as a result, donor-advised funds may represent a viable alternative for charitable giving.

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• The Roth IRA Conversion for 2010 Preview Download

  For individuals looking for a way to potentially save on income taxes in the future, converting a traditional IRA into a Roth IRA may be a great option. However, there are some important issues to consider. Below are questions from a reader of the Advisor, Andrew from Scottsdale, AZ about Roth IRA Conversions.

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• Sure I Want to Lose Weight and Other Half-Truths Preview Download

  A group of nuns recently asked me to participate in a meeting with their pension provider to determine whether to change their asset allocation policy.  Like most pensions, their plan suffered losses over the past 18 months.  The vendor led the committee through a series of canned questions about risk tolerance and their objectives…

  Download Research/White Paper
• Hiring an Investment Management Consultant (Chapter 16) Preview Download

  An excerpt from “The Practical Guide to Managing Nonprofit Assets”, Schneider, William A, Robert A. DiMeo, and Michael S. Benoit.  New Jersey:  John Wiley & Sons, Inc. 2005.

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• The Reverse Mortgage: They Pay You Preview Download

  You have lived in your house for a long time and are sitting on substantial equity. But you don't want to take out a mortgage or equity loan and saddle yourself with payments, and you don't want to sell your house and move. There is a third possibility: the reverse mortgage. It's not for everyone and it has a down side, but it may be the way for you to tap your equity.

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• Exchange Traded Funds (ETFs) vs. Exchange Traded Notes (ETNs) Preview Download

  ETFs, or Exchange Traded Funds, burst on the investment scene about a decade ago and have exploded in popularity with both institutional and taxable clients. However, now there is a new kid on the block called the Exchange Traded Note (ETNs), which shares some characteristics with its ETF counterpart, but also has some important differences.

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• REIT Valuations Approaching the Stratosphere Preview Download

  Since the beginning of the last bear market, REITS have generated an impressive 22.6% annualized total return (from August 2000 – December 2006). With the exception of emerging markets, REITs have been the strongest performer, outperforming the next closest asset class by over 6% per year.

  Download Research/White Paper
• The Next Chapter in the Active vs. Passive Management Debate Preview Download

  We are not so bold as to attempt to settle the active vs. passive debate. However, we hope our observations will help you determine where active and passive management is appropriate for your portfolio.

  Download Research/White Paper
• A Note about Notes Preview Download

  The world of investments and investment products is a constantly changing and evolving one. Financial instruments have been created to satisfy almost every conceivable risk, return and cash flow objective, for both the large institutions and the smaller private investor. However, not all investments are suitable for every type of investor, no matter how ‘customized’ these investments may appear. One such financial instrument is the Structured Note.

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• International REITs Preview Download

  In various forms, real estate has been used to diversify portfolios for decades. As recently as 1960, domestic real estate investments were only available to wealthy individuals or corporations with the financial resources to invest in shopping malls, office buildings, raw land, hotels and health care facilities.

  Download Research/White Paper
• The Low Volatility Dividend Preview Download

  Diversification not only reduces risk, but can be an important tool for increasing a portfolio’s expected long-term return. Reducing a portfolio’s volatility by adding a low-correlating investment can markedly improve a portfolio’s expected long-term return, even if the new investment does not have a higher expected return than the investment it replaced. How is it possible for a portfolio to have a higher expected return than the sum of its parts? The first step in understanding the Low Volatility Dividend is to differentiate Arithmetic and Geometric investment returns.

  Download Research/White Paper