Table of Contents

Issue Date: Monday, October 13, 2014

News

Some put PIMCO on watch or fire it; others stay on board

Some put PIMCO on watch or fire it; others stay on board

The departure of William H. Gross from Pacific Investment Management Co. might end up cutting deeper into his personal reputation than into the $1.87 trillion in assets under management at the firm he was synonymous with for 40 years.

Janus asset drain expected to end

Janus asset drain expected to end

Janus Capital Group's hiring of bond guru William H. Gross is expected to bring the Denver firm its first overall net inflows in 4 years and boost its $177.7 billion in assets under management by up to 25% over the next several years, analysts say.

U.S. investors not buying European equity pitch

U.S. investors not buying European equity pitch

Money managers, consultants and economists are growing increasingly positive on the case for European equities, citing relatively cheap valuations and further expected moves by the European Central Bank to boost the economy.

PIMCO upheaval opens doors for real assets firms

PIMCO upheaval opens doors for real assets firms

Years of low bond yields got real asset managers talking to asset owners looking for an alternative income source, but William H. Gross' departure from Pacific Management Investment Co. LLC has supercharged the conversations.

Better liquidity hoped for from electronic venues

Better liquidity hoped for from electronic venues

Creators of electronic trading venues for fixed-income securities are hoping that, by matching buyers and sellers, more choices in trading will result in more liquidity in the secondary market.

Smaller endowment funds out perform bigger ones so far this year

Smaller endowment funds out perform bigger ones so far this year

The smallest of the U.S. universities that have so far reported fiscal year returns for their endowments — University of Minnesota — notched up the biggest return at 20.4%.

DC plan costs continuing to decline, survey shows

DC plan costs continuing to decline, survey shows

Defined contribution plan executives are flexing their muscles in negotiations with record keepers, continuing to cut plan costs, a survey by investment consultant NEPC LLC, Boston, shows.

Consultants move to investment side

Consultants move to investment side

The rise in investor demand for multiasset-class solutions and outsourced CIOs is contributing to a spike in executives from investment consulting firms joining money managers.

Pension-related cases being heard by the Supreme Court

Pension-related cases being heard by the Supreme Court

The Supreme Court's new term includes cases challenging investors' burden of proof in securities litigation and whether 401(k) plan fiduciaries can be sued for investment choices made years earlier.

Political groups appeal SEC pay-to-play rule

Political groups appeal SEC pay-to-play rule

A federal limit on political contributions by money managers doing business with public pension funds is working so well that some political groups are continuing to challenge it in court.

GARP managers hold firm on EAFE portfolios despite losses

GARP managers hold firm on EAFE portfolios despite losses

Some global growth-at-a-reasonable price money managers are coping with client losses stemming from underperforming Europe, Australasia and Far East strategies.

ETF managers await key SEC decisions

ETF managers await key SEC decisions

The Securities and Exchange Commission is scheduled to make key decisions this month and next that could help expand the marketplace for active ETFs, paving the way for new offerings and expanding the number of money management firms offering products.

Get smart

The rapid growth of the U.S. strategic beta exchange-traded product market is outlined in a recent report by Morningstar.

Last call for Eddy Award entries

Last call for Eddy Award entries

The deadline for the annual Eddy Awards, sponsored by Pensions & Investments, is only days away. The deadline for the annual Eddy Awards, sponsored by Pensions & Investments, is only days away.

P&I adds to online staff in New York

P&I adds to online staff in New York

Yi Du has joined Pensions & Investments as digital producer in the New York office.

Special Report

The state of ETFs

Since 2009, assets in active ETFs have grown 62.4%. Now, the industry awaits SEC rulings that could help propel active ETFs even higher.

Online

Corrections

Frontlines

Editorial

Risk of star dependence

Risk of star dependence

The departure of William H. Gross from Pacific Investment Management Co. LLC leaves money management companies and institutional fiduciary clients alike wondering whether they should encourage the star system or a team approach to managing money.

Other Views

Challenges from 401(k) fiduciary breaches litigation

With ERISA entering its 41st year, commentators highlighting the landmark legislation's successes and failures have paid little attention to the newfound focus on fiduciary responsibility resulting from an increase in litigation from alleged fiduciary breaches, particularly in 401(k) defined contribution plans.

Embracing risk: Perils of aversion and misdefinition

The investment community is developing a strong aversion to risk at the institutional levels - with serious consequences.

Letters to the Editor

Department: Portfolio Management

Look beyond macro story to find equity returns in frontier markets

Look beyond macro story to find equity returns in frontier markets

Frontier markets typically are underdeveloped, with strong prospects for growth and capital market expansion.

People Moves