White Papers

We are happy to provide detailed white papers on a variety of topics to help inform you on a specific interest.

  • Credit Outlook: Financial Sector

    June 29, 2018

    Related topics: Fixed Income

    From tax cuts to charge-offs precipitated by corporate tax reform to a growing trend toward deregulation, a host of dynamics are affecting companies in the financial sector as we move through 2018. The implications of these emerging factors can be both positive and negative, depending on the sector and investor type.

    What follows is an overview of these trends and how they are affecting the creditworthiness of banks and insurance firms moving forward.

  • Is Your Portfolio Prepared for Tomorrow's Market Challenges?

    June 25, 2018

    Related topics: Interest Rates, Insurance Asset Management, Risk Management, Asset Allocation

    Traditional approaches to portfolio design - asset allocation - are based on theconcept that for each level of risk or volatility, there is an optimal combinationof asset classes that produces the highest rate of return. This optimizationforms an efficient frontier where a maximum level of return is projected to be achievable at each level of risk.

    But what’s the “right” level of risk for anygiven insurer? How can an insurer know? What asset classes should be considered for inclusion? What will happen to the portfoliounder market stress scenarios? If correlations go to 1 during a crisis? Or even just if spreads tighten further?

  • Is Your Portfolio Prepared for Tomorrow's Insurance Challenges?

    March 02, 2018

    Related topics: Insurance Asset Management, Asset Allocation

    Insurance is one of the most heavily-regulated industries in the world, and that regulation varies widely between jurisdictions. Add to this complexity the rapid pace of new entrants and technological innovation, and the insurance industry faces a significant level of evolution, if not revolution, in the coming years. Given this environment, traditional methods of portfolio management should be questioned as well. Can the portfolio be better designed to help insurers meet their new needs?

  • Truly Effective Asset Allocation for Insurance Companies

    September 05, 2017

    Related topics: Insurance Asset Management, Asset Allocation

    Effective asset allocation is critical to help achieve portfolio objectives. However, it’s even more important for insurers to help achieve business goals. Done incorrectly, the investment portfolio allocation maysignificantly detract from business results.

    Objectives-Based Asset Allocation® is unique as it is grounded in the four core needs shared by all insurance companies. And, it is effective in truly aligning the investment portfolio with insurers’ critical objectives.

  • Commercial Mortgage Debt: An Attractive Investment Strategy

    October 14, 2016

    Related topics: Insurance Asset Management

    Commercial mortgage loans are a unique, private asset class that may provide compelling benefits and worthwhile relative value to institutional investors. Many insurance companies consider commercial mortgage loans to be a core component of their investment strategy, and are currently a highly favored investment class by many companies. However, the nuances specific to mortgages and the specialized knowledge and systems that are required to underwrite and manage mortgage loans require the involvement of a capable investment manager.

  • Hedge Fund Strategies Demystified

    March 21, 2016

    Related topics: Insurance Asset Management, Asset Management, Risk Management, Alternative Investments, Asset Allocation

    While hedge funds can seem complex, the strategies are all based on the same basic concept that Alfred Winslow Jones pioneered nearly 70 years ago: making both long and short investments in public markets. The goal remains the same, to minimize volatility. Hedge funds are a unique asset class and they provide strong, risk-adjusted returns.

  • Insurer Viewpoint: Rethinking Alternatives & Market Volatility

    February 15, 2016

    Related topics: Insurance Asset Management, Asset Management, Risk Management, Alternative Investments, Surplus Growth

    Over the last several years, insurer allocations to alternative investments have grown at much higher annualized rates than overall invested assets - 8.5% vs. 4.5% - and this trend is expected to continue. There are several key reasons cited, including: enhanced risk mitigation (paramount to insurer success), stronger growth potential to support surplus, and additional yield and inflation protection.

  • The Basics: Private Equity Investing

    April 01, 2015

    Related topics: Insurance Asset Management, Risk Management, Alternative Investments, Asset Allocation, Private Equity, Surplus Growth

    Common concerns for private equity investors include the long-term illiquidity of invested capital and lack of transparency into underlying investments. Investors must weigh these concerns against the strong benefits of the asset class, their long-term objectives, and overall growth goals.

  • The Benefits of Alternatives

    October 01, 2014

    Related topics: Insurance Asset Management, Risk Management, Alternative Investments

    The global securities markets are undergoing a structural shift, and as a result, alternative investments are enjoying significant inflows. Factors helping fuel the use of alternatives is insurers' search for enhanced yield and return opportunities at a time when projected returns for asset classes are on the decline, continued challenges in underwriting profitability, and enhance diversification to meet business objectives.

  • Asymmetrical Return Profile

    April 01, 2014

    Related topics: Equity, Asset Management, Active Equity, Risk Management

    At Miles Capital, one of the distinguishing characteristics of our active equity management process is to calibrate the asymmetrical return potential (ARP) of a given stock, which in essence means evaluating its upside potential versus its downside risk. We simply call it prudent, and believe that such a mentality illustrates our commitment to preserving our clients' portfolios without significantly limiting the upside potential.

  • Rising Rates and Stocks

    December 01, 2013

    Related topics: Equity, Interest Rates, Insurance Asset Management

    Accustomed to the more than 30 year period of steadily declining interest rates, many institutional investors have been caught off guard by the need to adjust for a rising rate environment. With this framework as a starting point, should a sharp upward move in interest rates be a cause for concern for equity investors?


This material is for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expresses may change as subsequent conditions vary. The information herein is based on sources which Miles Capital believes to be reliable, but is not guaranteed to be accurate or complete.

Past performance is not a guarantee of future results. There is no guarantee that any forecasts made will come to pass. There is potential for profit or loss with any investment. Index performance is shown for illustrative purposes only — you cannot invest directly in an index. No part of this material may be reproduced in any form, or referred to in any publication without the express written permission of Miles Capital, Inc.