Table of Contents
Issue Date: Monday, February 20, 2012
News
$250 million Bridgewater stake sold to Texas Teachers
The $109 billion Teacher Retirement System of Texas, Austin, has taken a non-voting equity stake in Bridgewater Associates LP, part of a 10-year plan by the manager to dilute the stake held by founder Raymond T. Dalio, president and co-chief investment officer.
Fear giving way to optimism for eurozone rally
Institutional investors' short-term views on the eurozone have made an about-face in 2012: Where fears and contagion dominated just a few months ago, optimism and hope seem to abound.
Price was too high for Wilshire sale
Wilshire Associates Inc. was on the selling block in recent months, but the gap between what founder and majority owner Dennis Tito is seeking and what strategic buyers and private equity firms are offering for the Santa Monica, Calif.-based firm couldn't be closed.
Power's bid to expand Putnam via Deutsche unit buy dims
Whatever the outcome of Deutsche Bank's auction, Power Financial's pursuit of DWS shows that executives at the Montreal-based firm are ready and willing to add more chips to a four-year bet on the U.S. asset management market — staked by its $3.9 billion, mid-2007 purchase of Putnam Investments.
New pooled mortgage strategy touted for institutional investors
Two AllianceBernstein LP mortgage specialists say they have hit on the next great investment for institutional investors: securities based on a pool of residential Freddie Mac and Fannie Mae mortgages that could blossom into a $250 billion to $500 billion institutional market.
Proxy access proposals coming back strong
Proposals calling for corporations to include in their materials shareholder nominations for directors — the first time such resolutions will appear in proxy statements at any company since 2007 — could be leading indicators for this proxy season.
Obama budget going after retirement tax incentives
President Barack Obama's fiscal 2013 budget proposal marks his first formal attempt to trim tax incentives for retirement savings.
Investors not buying into gloom over carried interest tax hike
President Barack Obama's budget proposal to change the tax treatment of carried interest, the latest in a string of alternative investment initiatives in Washington, is bringing predictions of dire consequences from industry sources.
Global macro, managed futures heating up
U.S. institutional investors have global macro and managed futures managers firmly in their sights as they hunt for non-correlated investment strategies to add to their hedge fund portfolios.
European institutional investors to lean more on hedge funds
European institutions — led by the U.K. — are expected to raise or change their hedge fund allocations in a bid to improve funding levels while better controlling portfolio volatility, industry observers say.
Managers ready for DC explosion across Europe
In the U.K., an intense battle for defined contribution talent is emerging to establish or grow capabilities that will form a hub for the rest of Europe.
Frontlines
Editorial
The cost of low rates
Companies might have to contribute large amounts for at least the next several years because of weak markets and the Federal Reserve's monetary policy, which will keep interest rates low and liability values high.
Other Views
An end to the 60/40 asset allocation
The conventional approach to asset allocation — which began with the staple 60/40 policy portfolio of stocks and bonds, before morphing into highly leverage-sensitive alternatives — is approaching a generational inflexion point in my view.
Letters to the Editor
Face to Face
Davies took his expertise in DC industry to Russell
Boy Scout volunteer Richard A. Davies took his expertise in defined contribution industry to lead the business at Russell Investments.