White Papers

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

  • Building Blocks of Cash Management

    February 19, 2019

    Related topics: Asset Management, Risk Management, Asset Allocation, Surplus Growth, Public Entities

    For government organizations, developing a public funds investment program is an essential part of effective financial management — and one that may be overlooked. What follows is a look at some investment management best practices for public financial professionals who oversee their entity’s asset pools.

  • Credit Review: The Municipal Sector

    October 31, 2018

    Related topics: Fixed Income, Research

    The market for municipal bonds, the debt issued by states, cities and counties to fund projects, is a vast and complex sector of the economy. With more than 50,000 issuers of municipal debt across the U.S., evaluating sound investments in this sector can be daunting. Our credit-selection process for municipal securities is rigorous and disciplined to determine which investments we believe are most sound for our clients.

  • The Benefits of Alternatives

    October 12, 2018

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

    Many investors have shown interest in alternative mutual funds as they search for securities with different risks from more traditional options. While investors have had access to alternatives like hedge funds and commodities for years, this expansion has resulted in much greater accessibility across all sizes and types, leading to a “mainstreaming” of alternative assets. Here are some of the benefits of alternatives that demonstrate why....

  • Credit Outlook: Real Estate Investment Trusts

    October 11, 2018

    Related topics: Fixed Income, Research, REITs

    The real estate expansion cycle is now in its 10th year since the Great Recession, yet there are positive signs for the asset class’ potential due to favorable macroeconomic conditions.

    What follows is a high-level look at overall trends that are important for the sector, as well as positive and negative dynamics at play for five different common property types that make up REITs.

  • Behind the Fundamentals of Miles Capital's Equity Process

    September 26, 2018

    Related topics: Asset Management, Active Equity, Public Entities

    Miles Capital’s fundamental approach to equity management is focused on capturing as much of the market upside and as little of the downside as possible. We believe the foundation for achieving this consistent equity performance is driven through diversifying critical risks and selecting securities with strong fundamental characteristics.

    Here's a closer look at our approach, designed with the goal of delivering consistent, long-term performance for our clients.

  • Is Your Portfolio Prepared to Help Deliver on Your Goals?

    August 31, 2018

    Related topics: Insurance Asset Management, Asset Allocation

    Many investors know, or have heard that asset allocation (or portfolio design) accounts for over 90 percent of portfolio performance. But what kind of performance is it delivering? And what kind of performance does an insurer need?

    Is the objective to minimize risks or maximize return? This is the foundation of traditional asset allocation: the potential to achieve a specific return for a givenlevel of targeted risk.

    While this may be enough for a different type of investor, it has not been shown to be comprehensive for insurers. If a targeted return is achieved, does that mean the company objectives are achieved? And if market challenges occur, will the portfolio weather the storm?

  • 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?

  • The Basics: Private Equity Investing

    April 01, 2018

    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.

  • 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?

  • Rising Rate Impacts: What About Stocks?

    December 29, 2017

    Related topics: Interest Rates, Active Equity

    Although it is unclear the duration of this rising rate environment, the environment has caused investors to question what higher interest rates mean for their investment portfolios. While the implications of changes in interest rates for fixed income are relatively straightforward, the implications for equities are less clear.

    Given financial theory, a basic rule of thumb is that there should be an inverse relationship between long-term interest rates and stock prices (i.e. higher rates are negative for stocks). Stocks compete with fixed income securities as investment alternatives; therefore higher yields on bonds detract from the relative appeal of equities. Moreover, a rise in interest rates increases the discount rate on future cash flows which in turn pushes down asset values, including stock prices. With this framework as a starting point, should upward moves in interest rates be a cause for concern for equity investors?

  • 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.


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.