Introduction, As investment managers we recognize the fundamental role fixed income investments play in constructing a well-diversified portfolio However in the real world the decision of how best to invest in fixed income is not always easy In today’s market bonds are expensive Yields across the globe are flirting with all-time lows and spreads are the tightest they have been in decades With this backdrop…, Enhanced Core Plus (“ECP”, Mesirow’s latest solution to help investors seeking new avenues for higher yield lower correlations and a similar risk profile to their historical traditional fixed income portfolios, Does a greater use of credit make Core better, Though “Core Plus” is a broad term the difference between “Core” and “Core Plus” is typically the addition of credit The question must then be asked – “is the investor better off with this new allocation” On the face of it the strategy sounds riskier CHART 1 Average % of Portfolio Calculated Credit Quality Source Morningstar Direct Morningstar defines their Core style as portfolios that have less…, The performance difference maker – Currency Alpha, If adding a lesser-correlated asset such as credit can create such a dramatic shift in the efficient frontier it stands to reason that investment managers could search for additional asset classes that can add non-correlated returns to their portfolio It is for that reason that we believe currency strategies could be the next game changer in fixed income portfolio management Currency is a long-…, Mesirow’s Currency Alpha Extended Markets Strategy, A few critical elements to note on the Extended Markets strategy, Alpha Strategy Not Hedge, – The Extended Markets strategy is an alpha strategy and stand-alone management of currency exposure (This is important to note because it establishes the management extends beyond hedging, Components, – There are many different methods of constructing currency strategies so it is also necessary to specify the details of the strategy Mesirow’s Extended Markets Strategy uses a broad basket of global currencies and allocates capital between fundamental and technical strategies to drive returns, Controlled volatility, – Mechanisms are instilled in the strategy to reduce downside tail risk Table 2 Source Bloomberg eVestment Data from 3/2004–6/2019 First we examined whether the strategy harbored any hidden correlations with other asset classes Then we incorporated the currency strategy’s historical returns into the Core Plus portfolio modeled above to establish currency’s impact To test correlation we analyzed…, Our conclusion, We believe the strength of the historic numbers speak for themselves There appears to be a strong case for a strategy that integrates core fixed income with credit and currency alpha While Mesirow’s Enhanced Core Plus (“ECP” strategy just launched in October 2019 the building blocks of the strategy and modeled results make a strong case for its differentiation in the fixed income asset class…

Could Currency Alpha be the answer, Over the past decade socially responsible investing has become a key objective of pension funds globally Environmental social and governance (ESG risk ratings have enabled investors to incorporate non-tangible information about a company such as environmental and employee welfare policies into their investment decisions As the demand for ESG rated equity and bond funds increase portfolio managers…

Retirement used to mean the end of an era and was solidified by a person’s complete exit from the workplace However today’s Baby Boomers and those who will follow them will not be living their grandparents’ retirement lifestyles Given increases in longevity today’s 60ish retiree is closer to middle age than old age Retirement is becoming a transition to greater lifestyle choices versus a complete…, Entrepreneurship has become an attractive alternative for older employees who are seeking more than a life of leisure when they reach retirement age Such individuals may benefit by transitioning to a structure where they can embrace work and have more control over their careers such as the ability to select assignments structure work hours and negotiate compensation Entrepreneurship allows…, How much should you invest in starting a business,  , Although entrepreneurship may provide newfound freedom it should not threaten the financial security you have worked long and hard to build Before committing to a business consult your financial advisor and discuss what types of businesses are appropriate for you Converting a small hobby to a source of cash flow may be much different than investing in a fast food franchise You should also discuss…, What personal risk may come from your business, If you have had a full career as an employee you may not have had to think about business liability and threats to your personal estate By converting hobbies or other interests to a business you may engage in activity which requires protection beyond your homeowners and personal umbrella policies You should discuss your business plans with your attorney insurance agent and other trusted advisors…, Will you have fun, Although you are starting a business you are doing it as part of your retirement lifestyle Activities in retirement should continue the things you enjoy about work such as social engagement achieving goals and having financial security Make sure the venture you choose doesn’t feel like work but instead is enjoyable and contributes positively to your well-being As an entrepreneur retirement can…, Published January 2025, 1 Johnson W (2013 June 27 Entrepreneurs Get Better with Age Harvard Business Review pp  https//hbrorg/2013/06/entrepreneurs-get-better-with 2 https//wwwkauffmanorg/wp-content/uploads/2019/09/2017_Kauffman_Index_Startup_Activity_National_Report_Finalpdf

Eric Markin is a Director in Mesirow Investment Banking He is responsible for assisting with business development and leading the day-to-day transaction execution process across consumer and eCommerce and the food beverage and agribusiness industries with an emphasis on sustainable business models  His transaction experience spans a wide range of other industries as well including aerospace and…

Newly created senior leadership position for the firm, Will drive growth and new client solutions across equity fixed income currency and sustainable strategies, CHICAGO December 8 2020, – Mesirow (the “firm” an independent and employee-owned financial services firm announced today that Erik, Barefield rejoined the firm as Senior Managing Director and Head of Traditional Investment Management During his prior tenure at Mesirow Mr Barefield served as Senior Managing Director and Head of the Mesirow Advanced Strategies Global Client Relationship Team He will report directly to Richard S Price Mesirow Chairman and CEO In this newly created position Mr Barefield will oversee the firm’s…, About Mesirow, Mesirow is an independent employee-owned financial services firm founded in 1937 Headquartered in Chicago with offices around the world we serve clients through a personal custom approach to reaching financial goals and acting as a force for social good With capabilities spanning Global Investment Management Capital Markets & Investment Banking and Advisory Services we invest in what matters…

Environmental Social and Governance data as a complementary source in a fundamental strategy, Abstract This article explains how we incorporate ESG data within our systematic FX trading strategies Our approach uses an in-house data acquisition cleansing restructuring and standardisation pipeline Our proprietary algorithm dynamically assesses ESG indicators in order to promote the most compatible and demote the least compatible factors depending on recent FX market data Our 10 years…

ESG government risk and international IPO underpricing, Edward D Baker a Thomas J Boulton b* Marcus V Braga-Alves c Matthew R Morey c a Mesirow Financial International UK Limited Sackville House 40 Piccadilly London W1J 0DR UK b Farmer School of Business Miami University Oxford OH 45056 USA c Lubin School of Business Pace University New York NY 10038 USA Abstract We study the association between environmental social and governance (ESG government…

Over the past decade ‘socially responsible’ investing has become a key objective of pension funds globally Environmental social and governance (ESG risk ratings have enabled investors to incorporate ‘non-tangible’ information about a company such as their environmental and employee welfare policies into their investment decisions, ESG and the currency markets, Traditionally ESG ratings have only been published at a corporate-level However ESG ratings at a country-by- country level are now available In this article we take a preliminary look at whether this data could be useful in predicting the path of a country’s currency First let’s conjecture how a country’s standing in terms of ESG matters could potentially impact the price of its currency 1…, ESG and currency Research so far, As country-level ESG factors are relatively new there is limited research of the use of ESG country factors in the currency markets However in 2019 a paper by Baker Alves and Morey (2020 found evidence supporting the hypothesis that the currencies of countries with high ESG country-ratings performed significantly better than the currencies of countries with low ESG country-ratings Is there a link…, Creating an ESG currency basket, Like Baker et al (2020 we used the MSCI ESG Government ratings but concentrated our efforts on the developed currencies of AUD CAD CHF EUR GBP JPY NZD We created a systematic strategy which on an individual country basis creates a buy signal for that country’s currency if the most recent ESG value has increased the previous year and a sell signal if its most recent ESG value has decreased since…, Multi-Strategy Currency Factor,  , ESG Strategy Currency Basket, Original Weights, Weights adjusted to include allocation to the ESG Basket, Annualised Return 190% 252% 237% Annualised Standard Deviation 559% 285% 277% Return/Risk 034 089 085 Maxdown -852% -415% -318% Best month 701% 368% 374% Worst month -550% -154% -249%   The results of this analysis can be seen in the second column of Figure 1 Over the period in question the ESG currency strategy basket achieved a positive annualized return of 190% The progression of the net asset…