Table of Contents
Issue Date: Monday, May 18, 2015
Money managers affiliated with banks admitting they violated U.S. securities, banking and other laws could find it hard to get the necessary permission from regulators to continue running the more than $1.3 trillion they oversee.
Money manager assets rose modestly in 2014, due more to market gains than net inflows.
Illinois and Chicago lawmakers have little choice but to start paying off the substantial unfunded liabilities of their public employee pension plans now that the Illinois Supreme Court unanimously ruled that state pension reform passed in 2013 is unconstitutional.
Total worldwide assets under management of large money managers rose 114% in the 10 years ended Dec. 31, while total assets of the smallest firms dropped 40% during the same period, an analysis of data from Pensions & Investments' annual money manager surveys show.
Unconstrained fixed-income strategies, while popular with institutional investors as a way to reduce interest-rate risk and remove benchmark constraints, could be exposing investors to a whole new set of risks, industry experts say.
Caisse de Depot et Placement du Quebec, Montreal, which oversees investments of Quebec's public pension funds, is focusing on distribution instead of production as a way to gain returns from energy when oil prices are sinking.
Global banking groups are reinforcing their focus on money management, with a number of recent high-profile announcements set to bring further competition to the world of investment management.
Defined contribution industry participants are paying close attention to the carve-outs — exemptions distinguishing non-fiduciary behavior from fiduciary behavior — in the Labor Department's fiduciary rules proposed last month.
Mounting tensions over the situation in Greece and the potential for a default or exit from the eurozone are in part holding back institutions from investing in an otherwise positive story for Europe.
A growing number of Chinese and Japanese firms are looking to invest in overseas asset management firms, with analysts and bankers predicting Chinese companies might prove to have the bigger appetite over the next few years.
Deadlines for registering for Best Places to Work in Money Management and the Innovator Awards have been extended.
Among the myriad uses that institutional investors have found for exchange-traded funds, few intersect with the investor's ongoing operating model more than as an overlay for liquidity management.
The announcement last month that UniCredit Group and Banco Santander are set to merge their money management divisions put an end to months of speculation over the future of Pioneer Investments.
While executives at the Caisse de Depot et Placement du Quebec saw benefits in investing in energy distribution to offset reduced oil prices, Jim Keohane, president and CEO of the C$65 billion ($54.2 billion) Healthcare of Ontario Pension Plan, Toronto, took some mark-to-market losses on its direct energy holdings.
A recent paper attempts to isolate the impact of active share* on performance by examining product pairs – portfolios that differ in degrees of concentration.
Companies, and the investment managers that invest in them, are coming under pressure to add diversity to their top ranks.
Institutional investors should not rush into factor-based investing, the hot new thing being offered by many money management firms.