Table of Contents
Issue Date: Monday, June 27, 2016
Pension fund and money management executives are coming to terms with the U.K.'s momentous decision to leave the European Union, embracing the opportunities that volatility is presenting but doing so with serious concerns and questions about how to move forward.
There's a lot to love about private debt, with its lower expected volatility than bonds and immediate cash flow. But even the sector's most ardent admirers acknowledge its dark side: risks that could cut into investors' returns.
The first bondholders' class action against Volkswagen AG and its U.S. subsidiaries could provide a new avenue for U.S. investors to sue foreign companies in U.S. courts.
The breaches of the SWIFT bank messaging system disclosed in late April have shined a spotlight on the security of all institutional transactions, from securities trading to cash transfers and foreign exchange.
New Zealand Superannuation Fund is turning to factor-based strategies to squeeze better long-term returns from the roughly 75% of its NZ$30.3 billion ($21.4 billion) portfolio invested now in passive strategies.
PIMCO's announcement this month that it is making a 3% cut in its headcount is only the latest, and most public, move in a continuing reduction.
MSCI's decision this month to once again delay adding China's A shares to its emerging markets indexes could favor the small vanguard of U.S. institutional investors already fishing for alpha in that country's deep, inefficient stock market, analysts say.
Corporate defined benefit plan sponsors likely will step up allocations to liability-driven investing and raise pension contributions in coming months, according to pension strategists.
Potential demand for high-quality, long-duration bonds could amount to $600 billion in total over the next few years due to both a shift to more fixed-income allocations and a shift within fixed income to more of a long-duration, derisking strategy, Michael A. Moran, pension strategist, Goldman Sachs Asset Management Inc., New York, said in an interview.
The expansion of the C$278.9 billion ($218.2 billion) Canada Pension Plan, Ottawa, should be cleared for approval by mid-July, with all but two provincial legislatures expected to vote in favor of the agreement.
No distress? No problem; capital won't be called until investment cycle improves
The elimination of its dividend investment team is the final blow to PIMCO's attempts to build an active equity franchise.
Defined benefit pension plan sponsors and boards must take into account intergenerational equity to ensure fairness of their decisions across generations.
A bill pending in Congress would undermine proxy-voting firms and consequently weaken the capability of asset owners and other institutional investors to bring to bear their crucial resources to assist in voting on proxy issues at publicly traded companies.
Asset owners might be unintentionally falling short in their private markets portfolio composition.
Wouldn’t it be great if there were a way to get higher returns on short-term investments — without having to risk eating dog food in your 70s and beyond because you made risky investments that went bad? There is. With what we call “survivor funds,” 401(k) plan participants could get significantly higher returns.