Morningstar. S&P 500 Total Return Index (Equities), FTSE NAREIT All Equity REITs Index (Public REITs), NCREIF Fund Index (Commercial Real Estate), ICE BofAML US High Yield TR (U.S. High Yield Bonds), S&P/LSTA Leveraged Loan Total Return Index (Corporate Credit), Barclays U.S. Aggregate Total Return Value Index (Corporate Bonds). 1/1/14-12/31/18.
Past performance is no guarantee of future results. This chart is intended for illustrative purposes only and does not represent actual investments. You cannot invest directly in an index. The analysis assumes that the hypothetical portfolio with Alternatives is rebalanced amongst the three sections of direct real estate, global infrastructure, and energy on a quarterly basis. You cannot invest directly in an index.
Diversification does not ensure profit or prevent losses. Past performance does not guarantee future results. There is no guarantee that alternative investments will achieve their objectives, generate profits, or avoid losses.
The S&P/LSTA Leveraged Loan Total Return Index is a market value-weighted index designed to measure the performance of the U.S. leveraged loan market based upon market weightings, spreads, and interest payments.
The Barclays U.S. Aggregate Total Return Value Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS (agency and non-agency).
The FTSE NAREIT All Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. Equity REITs. Constituents of the Index include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property.
The S&P 500 Total Return Index is an index of 500 stocks chosen for market size, liquidity, and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. Companies included in the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor’s. The S&P 500 is a market value weighted index — each stock’s weight is proportionate to its market value.
The Bank of America Merrill Lynch U.S. High Yield Index tracks the performance of US dollar-denominated below investment grade corporate debt publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest. Accrued interest is calculated assuming next-day settlement. The index is rebalanced on the last calendar day of the month, based on information available up to and including the third business day before the last business day of the month.
The NCREIF Property Index is a quarterly time series composite total rate of return measure of
investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only.
2 Willis Towers Watson. Global Pension Assets Study 2016. 2016.