Table of Contents

Issue Date: Monday, November 10, 2014

News

Illinois Teachers alters fixed-income  subasset classes in move to simplify

Illinois Teachers alters fixed-income subasset classes in move to simplify

The $45.3 billion Teachers' Retirement System of the State of Illinois continues to slide its global fixed-income portfolio ever closer to the cutting edge of bond management.

GOP Congress might revisit tax incentives for retirement plans

GOP Congress might revisit tax incentives for retirement plans

As Republicans prepare to take control of the 114th Congress in 2015, their agenda could change the tax incentives for retirement plan sponsors and participants. Money managers could also see changes if the new Congress revisits much-criticized financial regulation.

Managers finally back over the top

Managers finally back over the top

Total assets under management of the top 500 money managers broke through pre-crisis levels with a combined $76.5 trillion for calendar year 2013, according to the Pensions & Investments/Towers Watson World 500 ranking of money managers.

P&I spotlights 5 who went extra mile for participants

P&I spotlights 5 who went extra mile for participants

2014's five Innovator Award winners all sought to engage specific groups of participants who haven't taken full advantage of retirement savings programs or who have been underserved by their defined contribution plan.

Hedge funds of funds are competing with consultants

Hedge funds of funds are competing with consultants

Hedge funds-of-funds managers are turning the tables on investment consulting firms that have been poaching their institutional clients.

Energy partnerships make dominant move

Energy partnerships make dominant move

Energy limited partnerships dominated the domestic equity rankings for the year ended Sept. 30.

Long-duration portfolios push their way up

Long-duration portfolios push their way up

Long-duration bond strategies led the list of top-performing fixed-income managers for the year ended Sept. 30, according to Morningstar Inc.'s separate account/collective investment trust database.

San Francisco pension fund likely to stay out of hedge fund deep end

The board of the $20 billion San Francisco City & County Employees' Retirement System is expected in the next several weeks to reject Chief Investment Officer William Coaker's plan for a 15% allocation to hedge funds and instead reduce the allocation to no more than 5%, sources say.

Weak equity returns sting managers

Weak equity returns sting managers

Several publicly traded money managers experienced either a decline in assets under management or flat growth during the third quarter, due to weak equity markets.

Critics strike back at tick-size pilot program

Critics strike back at tick-size pilot program

The inclusion of a trade-at provision in the SEC's proposed small-cap tick-size pilot program is proving controversial, with debate centering on whether it unfairly targets dark pools and makes the overall pilot too complex.

Japan's GPIF embarks on volatile journey

Japan's GPIF embarks on volatile journey

Japan's Government Pension Investment Fund has set course to steer its 127.3 trillion (US$1.11 trillion) portfolio into more volatile waters, in search of higher returns.

Taiwan's BLF eyeing diversification moves

Taiwan's Bureau of Labor Funds, launched in February to consolidate oversight of six public funds with combined assets of US$84 billion, is looking to alternatives strategies as key drivers in the bureau's efforts to diversify its investment portfolio.

Munro shaking up Aviva Investors

Munro shaking up Aviva Investors

Euan Munro, CEO at Aviva Investors, has made big changes not only to investment processes, but also to personnel, in his quest to bring the money manager to the forefront of institutional decision-makers' minds.

Energy investors cautiously fill up

Energy investors cautiously fill up

Billions of dollars are pouring into private equity energy funds as oil prices plummet, just one reason some industry insiders say investors should expect lower returns in parts of the oil and gas sector.

Chart Central: ESG's momentum

Environmental, social and governance factors continue to gain ground among U.S. and European asset owners.

State Street edges BNY Mellon in custody assets

State Street Corp. moved ahead of Bank of New York Mellon Corp. as the largest custody bank in terms of assets, with a slight increase in assets under custody and related revenue in the third quarter, while BNY Mellon, J.P. Morgan Chase & Co. and Northern Trust Corp. all saw slight decreases in both categories.

Book pushes changes to forestall retirement crisis

Book pushes changes to forestall retirement crisis

The U.S. retirement system needs an upgrade, says a new book recommending changes in defined contribution plans, tax policy, legislation, and Social Security.

Special Report

Innovator Awards: Recognizing trailblazing DC plan initiatives

For the third year, P&I/DCIIA award lauds defined contribution plan executives for thinking outside the box.

The P&I Towers Watson World 500: World's Largest Managers

Total assets under management of the top 500 money managers broke through pre-crisis levels with a combined $76.5 trillion for calendar year 2013, according to the Pensions & Investments/Towers Watson World 500 ranking of money managers.

Top-performing money managers: Q3 2014

In equities, energy dominates, while in fixed income, long-duration strategies make headway.

Online

Frontlines

Editorial

Risks of clouding priorities

Risks of clouding priorities

Asset owners, institutional investment management firms and the markets are not immune from crises of confidence.

Other Views

Target-date fund outcomes expose fiduciaries to risk

Target-date fund outcomes expose fiduciaries to risk

TDFs are often black boxes, so many fiduciaries don't realize they do not have a rigorous conceptual basis — as demonstrated by the dramatic variation in the returns and asset allocations of funds with the same target date.

Industry Voices

Creating a culture of retirement savers

Creating a culture of retirement savers

It is clear that our country's savings culture — and the systems that support it — need a significant reboot.

Letters to the Editor

People Moves