Table of Contents

Issue Date: Monday, November 28, 2016

News

CalPERS balancing risks in review of lower return target

CalPERS balancing risks in review of lower return target

The stakes are high as the CalPERS board debates whether to significantly decrease the nation's largest public pension fund's assumed rate of return, a move that could hamstring the budgets of contributing municipalities as well as prompt other public funds across the country to follow suit.

Event-driven strategies take tumble

Event-driven strategies take tumble

Event-driven managers are taking it on the chin, racking up net outflows of $38 billion so far this year, the largest among all hedge fund strategy categories.

Trump company 401(k)s follow namesake's maverick ways

Trump company 401(k)s follow namesake's maverick ways

The defined contribution plans sponsored by companies bearing the name of President-elect Donald J. Trump are outliers from the norm when it comes to their largest allocations.

Assets in or out is the question for plan execs

Assets in or out is the question for plan execs

Defined contribution executives are wrestling with a 401(k) plan strategy whose theme is best described by the band The Clash: “Should I Stay or Should I Go?”

'Saturation point' for passive?

More than the idea that active management seems to be turning a corner, sources say, it might be that passive management has had its day.

Disassembly of Dodd-Frank won't be easy

Disassembly of Dodd-Frank won't be easy

President-elect Donald J. Trump's campaign pledge to dismantle the Dodd-Frank Wall Street Reform and Consumer Protection Act might have struck a chord among voters, but the politics of repealing or replacing it won't be simple.

Some seeing  a new cycle back to active

Some seeing a new cycle back to active

The tide might be turning for active managers, as dispersion creeps back into global stock markets and investors realize their long-term return assumptions just won't cut it going forward.

Japanese investors going on global spree

Japanese investors going on global spree

Japan's economy might be treading water, but the country remains a vibrant growth market for global money managers as local banks, insurers and pension funds move to plug holes in their portfolios left by scant-to-negative yields on Japanese government bonds.

Secondary market no longer seeing bargains

Secondary market no longer seeing bargains

Discounts to the alternatives secondary market have disappeared, and prices remain higher in the face of upcoming European elections as well as the aftermath of the election of Donald J. Trump and Britain's vote to withdraw from the European Union.

Managers might see cybersecurity regulations soon

Managers might see cybersecurity regulations soon

Cybersecurity rules for the U.S. banking industry could eventually be extended to money managers, sources said.

APG chief prepares to pivot with change in Netherlands

APG chief prepares to pivot with change in Netherlands

With the upcoming Dutch general elections in March and increased responsibilities set to land at providers' doors, firms such as APG Group are working hard to prepare for changes at the heart of their retirement system.

Real estate allocations up as investors seek security

Real estate allocations up as investors seek security

Institutional investors are using real estate as yet another proxy to bonds, to effectively manage volatility and protect against rising inflation. In Europe and the U.K. particularly, real estate allocations remain on the rise.

Investors remain cool to increase in Treasury yields

Investors remain cool to increase in Treasury yields

Yields on 10-year U.S. Treasuries hit a 2016 high in the days following the U.S. presidential election, but asset owners won't be boosting bond allocations just yet. Their reasoning: It's unclear whether higher yields are here to stay.

ETFs make their mark on global political landscape

From Brexit to the U.S. election, traders and investors alike turned to single-country ETFs to express their views on how campaign rhetoric might translate into policy.

Hensarling bill possible successor to Dodd-Frank

Hensarling bill possible successor to Dodd-Frank

The likeliest vehicle for starting the reform conversation is the proposed Financial Choice Act bill introduced in June by House Financial Services Committee Chairman Jeb Hensarling, R-Texas.

Special Report

Consultants directory 2016

Investment consultants face challenges as bearers of bad news in assisting asset-owner clients grappling with lower capital market expectations that are pushing them to extend risk exposures to reach assumed returns.

Online

Frontlines

Editorial

Dodd-Frank in need of review

Dodd-Frank in need of review

Some in the institutional investment community might have a meltdown over prospects of the Trump administration dismantling the Dodd-Frank Wall Street Reform and Consumer Protection Act, but they should calm down.

Other Views

Repeal and replace DOL rule on fiduciary conflict of interest

Last April the Department of Labor finalized its massive fiduciary conflict of interest rule, restricting severely the ability of financial institutions to compensate employees who are providing advice to retirement plan and individual retirement account participants.

Asset owners face daunting path from continuing central bank challenges

If we look past the market's most recent fixation on the possibility of fiscal stimulus, there's little to distinguish today's environment of sluggish growth and pedestrian returns from the similarly predictable rhythm of the past few years.

People Moves