Table of Contents

Issue Date: Monday, May 2, 2016

News

Private equity managers regain the upper hand

Private equity managers regain the upper hand

Private equity investors are getting a dose of the new normal as the hottest fund managers again demand general partner-friendly terms and fees that investors have not seen since the pre-crisis go-go fundraising days.

Outlooks split on where high yield will sparkle next

Outlooks split on where high yield will sparkle next

Global high-yield markets have rallied following a difficult few months, but money management executives are divided over the outlook for the U.S. and European markets and where best to place their bets.

Investors not following New York City's lead

Investors not following New York City's lead

NYCERS' actions notwithstanding, few institutions are dumping hedge funds.

Getting alpha (or not) from equity execution

Getting alpha (or not) from equity execution

Equity trading strategies increasingly are being seen through the lens of investment performance, with some sources referring to savings from reduced trading costs as alpha, not unlike what's obtained from excess investment return.

Hedge fund offerings hit a growth spurt in S. Korea

Hedge fund offerings hit a growth spurt in S. Korea

A strong regulatory tailwind is buoying South Korea's nascent hedge fund industry this year, even if the impact on the supply side is outpacing growth in demand just now.

Sun Capital case may tip private equity equation

Sun Capital case may tip private equity equation

A groundbreaking legal decision that could give pension funds and the Pension Benefit Guaranty Corp. more muscle in recovering pension liabilities has private equity firms suddenly paying a lot more attention to deals where pension benefits are involved.

TCW sees assets reach all-time high on bond fund growth

TCW sees assets reach all-time high on bond fund growth

Assets under management at Los Angeles-based money manager TCW Group Inc. have reached an all-time high of more than $180 billion as the firm has capitalized on William H. Gross' departure from rival money management firm PIMCO.

Exxon Mobil feels heat from all sides

Exxon Mobil feels heat from all sides

Exxon Mobil Corp. is facing pressure on climate change from asset owners and governmental investigators, as well as challenges affecting the entire oil and gas industry.

Kroger, UPS challenge Central States reduction plan

A pending plan to cut benefits to members as part of a rescue plan for the Teamsters Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., is facing challenges even before the U.S. Treasury Department acts on the fund's application.

Wanted: Nominations for DC innovators

Time is running out to nominate executives for the 2016 Excellence and Innovation Awards, sponsored by Pensions & Investments and the Defined Contribution Institutional Investment Association.

Hot in Hawaii

Kamehameha Schools' endowment has grown to be one of the largest with a successful absolute-return portfolio and Hawaiian real estate.

COLA clashes in spotlight as public plans, participants tussle

COLA clashes in spotlight as public plans, participants tussle

Through legislation and regulation, public pension plans are reforming their cost-of-living-adjustment rules, which often ignites legal clashes with employees and retirees.

Money management pioneer Seth Glickenhaus dies

Money management pioneer Seth Glickenhaus dies

Seth Glickenhaus, a bond trader turned money manager whose studies of law and medicine failed to lure him away from Wall Street, his professional home for more than eight decades, has died. He was 102.

Aurora shutting its doors; client money to be returned

Aurora Investment Management will close and return money invested in its hedge fund-of-funds strategies after a failed attempt to sell the business.

McKinsey report sees disappointing returns

Investment returns in the U.S. and Western Europe over the next 20 years will likely fall short of the returns of the previous 30 years, and investors should scale back their expectations as a result, said a new report from McKinsey Global Institute.

Managers offer new strategies to answer ESG call

Managers offer new strategies to answer ESG call

Environmental, social and governance issues, already prominent among European investors, are no longer held in niche status with U.S. investors.

Special Report

Special report on infrastructure

Institutional investors jostling one another this year for a toehold in existing power plants or toll roads — in search of the steady, reliable yields sovereign bonds used to provide — might want to rethink their reluctance to invest in new ones instead.

Online

Frontlines

Editorial

Hedge fund challenges

Hedge fund challenges

Recent decisions by major asset owners to eliminate or significantly curtail exposures to hedge funds should renew concern about their generally high fees, lack of transparency, illiquidity, complexity and expectations of exceptional performance.

Other Views

Asset owner challenge to balance public, private markets

The South Carolina Retirement System Investment Commission has been criticized internally, externally, and publicly for its high allocation to alternative investments. Our state treasurer, Curtis M. Loftis Jr.

Faulty claims underlie legislative call for federal mandates

In 2011, a flawed research paper was used as the basis for proposed federal legislation to mandate costly pension reporting requirements on state and local governments.

People Moves