NEPC, LLC

As investors navigate an increasingly complex market environment, extension strategies are stepping into the spotlight. In his latest blog, NEPC’s William Forde, CFA, CAIA breaks down how these strategies—particularly long-only 120/20 and 130/30 approaches—are helping institutional investors pursue higher returns without increasing market risk. He also explores where they may fit within a portfolio and the key factors to consider before implementation. 📈 Curious about whether extension strategies belong in your toolkit? 🔗 Read the full insight: https://hubs.ly/Q03hS1ZR0

Join us today for NEPC’s quarterly investment webinar, “The Policy Cocktail: Shaken Sentiment, Stirred Markets.” Don’t miss this timely conversation with NEPC’s Jennifer Appel, CFA and Phillip Nelson, CFA as they break down the current market environment and offer forward-looking insights to help you navigate what’s ahead. Register now: https://hubs.ly/Q03hsxcc0 Can't attend live? No worries - register above and we'll send you the recording!

Markets pulled back in March amid growing concerns around tariffs and softening sentiment from consumers and small businesses. Yet, the U.S. economy remains resilient: ✅ Inflation stayed modest at 0.2% for February ✅ 228,000 jobs added in March ✅ Jobless claims steady Despite strong data, markets are increasingly pricing in uncertainty around tariffs—their scope, implementation, and economic impact. Read NEPC’s full March 2025 Monthly Market Commentary here: https://lnkd.in/eNEuZNt8 #NEPC #MarketCommentary #Inflation #JobsReport #Tariffs #EconomicOutlook

Michigan State University delivered a standout 15.1% return in FY24, ranking second among NEPC's mega #endowment universe, driven by high exposure to U.S. tech. But as NEPC Partner Kristin Reynolds, CFA, CAIA recently shared with FundFire, that same tech-heavy tilt could pose challenges amid current market volatility. "Endowments with high public equity U.S. tech exposure performed exceptionally well over the past two years but are likely facing challenges in the current market," says Reynolds. At NEPC, we’re actively managing concentration risk by complementing U.S. tech exposure with value stocks, leaning into stronger-performing non-U.S. equities, and finding stability in high-quality bonds as interest rates trend lower. Read our latest FY24 mega endowment report: https://lnkd.in/eBuqc4WT

The recent market turmoil is a powerful reminder of the importance of #diversification. In December, we published a piece on Diversifying Strategies and outlined how a well-constructed diversifying allocation can reduce equity risk, stabilize returns, and improve long-term performance. We are firm believers that a strong diversifying allocation should: 1. Provide complementary attributes in various market environments 2. Include strategies with low correlation to each other and to traditional assets like stocks, bonds, and private investments These often-overlooked strategies are meant to complete a portfolio, not compete with its return-seeking core. To learn more, read the full paper: https://lnkd.in/exUkzWw3

NEPC’s Phillip Nelson, CFA and Jennifer Appel, CFA discuss the market impact of new U.S. tariffs, covering equity performance, inflation expectations, and portfolio positioning amid rising recession risks. Watch the full video here▶️: https://hubs.ly/Q03gF3190

As stocks continue their freefall and market sentiment sours amid a potential global trade war set off by steep tariffs, NEPC's Phillip Nelson, CFA and Jennifer Appel, CFA offer insights on what investors should do now, and what to watch for next. Read the full blog post to learn why staying diversified and maintaining ample liquidity are key amid the uncertainty: https://lnkd.in/edrgnYtD

In a recent Business Insider article, NEPC’s Phillip Nelson, CFA explained that stocks with moderate valuations and less exposure to tariff headlines have weathered market uncertainty better than others. Read more: https://hubs.ly/Q03dT0dS0

Last week saw the S&P 500 Top 10 Index drop more than 10%—technically qualifying as a market correction—after hitting a peak on February 19th. As investors wonder if the recent losses are a warning of more ominous times to come, we turn to NEPC’s Partner and Head of Asset Allocation, Phillip Nelson, CFA, for answers. Read his latest blog post here: https://lnkd.in/eZ3ztzYW

In February, defined benefit pension plans likely saw a decrease in funded status due to falling Treasury rates and declines in return-seeking assets. Global equities posted modest losses, and underhedged corporate plans faced downward pressure. NEPC’s hypothetical total return plan dropped 2.2%, while our LDI-focused plan rose 0.1%. To learn about NEPC's rate movement commentary, plan sponsor considerations, and thoughts on the market environment and yield curve movement, read our February 2025 Pension Monitor: https://hubs.ly/Q03bYSC90