Table of Contents

Issue Date: Monday, October 27, 2014

News

'Amazing' problems hit in one week

'Amazing' problems hit in one week

Global equity market volatility in mid-October might have left the worst burn marks since 2008 on many hedge funds, but the stress has created performance dispersion that will help investors better distinguish producers of true alpha.

White-label funds on rise for DC plans

White-label funds on rise for DC plans

Defined contribution plan executives increasingly are replacing brand-name mutual funds with no-name options, trying to simplify investment lineups, increase portfolio diversity and reduce fees.

CEO shift raises Pyramis question

CEO shift raises Pyramis question

Abigail P. Johnson's promotion to CEO of Fidelity Investments - a foregone conclusion to many industry professionals - is prompting questions about what the change will mean for the company and its institutional subsidiary, Pyramis Global Advisors.

PRI exec harnessing the power of $45 trillion

PRI exec harnessing the power of $45 trillion

The woman at the helm of the United Nations-supported Principles for Responsible Investment and her team are on a mission to get asset owners to use their influence — and trillions of dollars in collective assets — to bring responsible investment into the mainstream, flex their engagement muscles and ensure their socially responsible behavior is used for good.

Battle for share of PIMCO spoils is getting hotter

Battle for share of PIMCO spoils is getting hotter

The money spigot is expected to keep flowing for PIMCO competitors who are working hard to snare the billions in fixed-income investments in play following September's departure of William H. Gross from the firm he co-founded.

Managers alter models to keep their investors happy

Managers alter models to keep their investors happy

Real estate managers are tweaking their models, turning to joint ventures and other arrangements with asset owners and operators to generate capital and deal flow.

Future Fund goes heavy on currency exposure

Future Fund goes heavy on currency exposure

Australia's Future Fund has boosted the foreign currency exposure of its A$104.5 billion (US$91.5 billion) portfolio to record levels to preserve flexibility and boost resilience to liquidity shocks.

Pact raises caution flag on swaps

Pact raises caution flag on swaps

Asset owners that use swaps could ultimately face losses and added risk as a result of an agreement among 18 major global banks.

Managers more serious about compliance

Managers more serious about compliance

Private equity and hedge fund managers, prodded by their institutional clients, are taking compliance more seriously as federal examiners and enforcers up their game targeting practices they say put investors at a disadvantage.

Andrew Carter, father of active bond management

Andrew Carter, father of active bond management

Andrew M. Carter — the father of active bond management who also created the first bond index fund and was considered “one of the finest math guys” in fixed income — built a clientele of some of the biggest corporate pension funds.

ETP traders not responding to exchange overtures

All too often, exchange-traded products are described as mutual funds that trade like stocks. A closer look reveals that not to be the case. To the surprise of many, ETP traders are comfortable in the dark.

Custody banks report gains from year-earlier figures, but dips for the quarter

Bank of New York Mellon Corp., J.P. Morgan Chase & Co. and Northern Trust Corp. all saw slight decreases in assets under custody and related revenue in the third quarter.

Amundi Smith Breeden going global after merger

Amundi Smith Breeden LLC has been in growth mode in the year since its creation from the acquisition by Paris-based Amundi of U.S. fixed-income specialist Smith Breeden Associates.

Clock ticking for managers in changing U.K. defined contribution market

Clock ticking for managers in changing U.K. defined contribution market

Global money managers operating in the U.K.'s defined contribution market are running out of time to get their strategies in line for a world where savers have more freedom than ever before.

M&A activity slides for quarter; number of deals, assets down

Money manager merger and acquisition activity in the third quarter declined sharply, with assets in transactions totaling $135.8 billion, down about 77% from the second quarter and down about 36% from a year ago.

ERISA at 40: Stewards reflect on good, bad

ERISA at 40: Stewards reflect on good, bad

Reflecting back on ERISA's first 40 years, the people who've administered it say there were some hits and some misses.

Special Report

The largest real estate investment managers: 2014

Hungry investors feast on real estate, push assets up 13.7% to highest point since '08.

Online

Corrections

Frontlines

Editorial

A better place for pensions

A better place for pensions

The decisions of Motorola Solutions Inc. and Bristol-Myers Squibb Co.

Suppression of dissent shouldn't be a core value

CalPERS' reprimand of a board member for publicly criticizing the hiring of Theodore “Ted” Eliopoulos as its chief investment officer is unacceptable.

Other Views

For ERISA to have a future, return it to its roots

Forty years ago, President Ford signed the Employee Retirement Income Security Act into law. It's hard to conceive now, but ERISA was crafted by both Democrats and Republicans with support from both business and labor. Since then, it's protected the pensions of tens of millions.

The market is ready for proxy access

The market is ready for proxy access

It is time for the Securities and Exchange Commission to propose proxy access again.  

Letters to the Editor

People Moves