Table of Contents

Issue Date: Monday, February 20, 2017

News

Risk-parity portfolios weather spike in yields

Risk-parity portfolios weather spike in yields

Risk-parity strategies are emerging relatively unscathed from the Donald Trump era's initial spike in Treasury yields, a market move some had seen as a potential Achilles' heel for portfolios with leveraged bond exposures.

More investors thirst for most liquid asset

More investors thirst for most liquid asset

Water is the new carbon for institutional investors and money management firms across the globe, as risks and opportunities arising from water scarcity climb up the risk agenda.

Cash flow gets new attention from DB plans

Cash flow gets new attention from DB plans

Executives at pension funds, money management firms and consultants are increasingly focused on cash flows, as defined benefit plans mature and face the prospect of having to sell assets to satisfy cash calls.

Secure Choice prospects tested by House vote

Secure Choice prospects tested by House vote

States and local governments hit a major roadblock, after the U.S. House of Representatives approved resolutions blocking Department of Labor safe-harbor rules for their private-sector retirement savings programs.

Technology drives Blackstone buy of Aon record keeper

Technology drives Blackstone buy of Aon record keeper

Blackstone's up to $4.8 billion acquisition of a majority interest in Aon's benefits administration and human resources unit has some industry insiders wondering what the giant alternative investment firm would want with a business as low margin as U.S. defined contribution record keeping.

Many acquisitions lose luster over time

Many acquisitions lose luster over time

Companies that once swallowed up DC record keepers and other benefits businesses to diversify, expand and increase shareholder value are now regurgitating them to consolidate — again to increase shareholder value.

Investors are not out of the woods despite delay in OTC margin rule

Investors are not out of the woods despite delay in OTC margin rule

Money managers and asset owners won't necessarily be getting a break from complying with a March 1 deadline to post mark-to-market margin on some over-the-counter derivatives.

Merger shows that contraction isn't going away

Merger shows that contraction isn't going away

The hedge funds-of-funds industry is contracting yet again with a merger of two big institutional players, a move that has some industry observers scratching their heads.

Managers trim fees to keep U.K. fund assets

Managers trim fees to keep U.K. fund assets

Money managers are shaving fees well in excess of 10% in order to secure the business of local government pension schemes that are in the midst of consolidating about $266 billion into eight asset pools.

Robo-advisers aren't taking over ... yet

Robo-advisers aren't taking over ... yet

The spate of money managers either launching or buying stakes in robo-advisers over the past few years is a sign that the retail and wealth management industry is becoming more automated and reliant on artificial intelligence.

SoftBank-Fortress deal has investors' attention

SoftBank-Fortress deal has investors' attention

Investors are paying close attention to SoftBank's pending $3.3 billion acquisition of Fortress Investment to see if it sparks a privatization trend among publicly traded alternative investment firms.

Trump throws future of fiduciary rule into disarray

Trump throws future of fiduciary rule into disarray

As the April 10 deadline approaches for implementation of the Department of Labor's fiduciary rule, some members of the defined contribution industry are forging ahead with compliance strategies while others are holding off.

Law school dean nominated to be labor secretary

Law school dean nominated to be labor secretary

With R. Alexander Acosta nominated to be the next secretary of labor, some industry experts are watching to see how he might affect recent efforts to delay the Department of Labor's fiduciary rule.

Many ways to deal with negative cash flow positions

Many ways to deal with negative cash flow positions

Although cash flows in aggregate are generally moving toward a negative position across the globe, individual markets deal with the issue in different ways.

No P&I Daily on Presidents Day

P&I Daily will not be published Monday, Feb. 20, in observance of Presidents Day. Publication will resume Tuesday, Feb. 21.

Special Report

Fate of defined benefit plans

Fate of defined benefit plans

The flood of cheap money unleashed by central banks' quantitative easing efforts to combat the global financial crisis has only added to the pressures that corporate, as well as public, plan sponsors face.

Online

Frontlines

Editorial

Be wary of unintended risk

Be wary of unintended risk

There is reason to celebrate financial engineering, which combines finance, investment management, high-level mathematics and computer programming science.

Other Views

As impact investing grows, it moves toward defining moment

As impact investing grows, it moves toward defining moment

Impact investing is in the midst of explosive growth as more investors look for ways to become involved.