Table of Contents

Issue Date: Monday, November 24, 2014

News

VRS starts 'experiment' with strategic alliances

VRS starts 'experiment' with strategic alliances

The $65.2 billion Virginia Retirement System, Richmond, is ready to join the growing ranks of public pension funds creating strategic alliances with external investment managers.

Analysts say PIMCO could survive a further $350 billion asset drain

Analysts say PIMCO could survive a further $350 billion asset drain

PIMCO could withstand an asset drain of up to $350 billion in the next two to three years — about 10% to 15% of its total assets — before its portfolio management operations could be affected, analysts say.

The star system is still shining at hedge funds

The star system is still shining at hedge funds

William H. Gross might be the last of the true superstar managers at traditional investment management shops, but star power still is very marketable in the hedge fund industry.

Impact investors shifting gears to accommodate specific goals

Impact investors shifting gears to accommodate specific goals

The trend of impact investing — into companies, organizations and funds with the aim of investing for social and environmental good, as well as a financial gain — is becoming more specific.

U.S. is location, location, location for foreign buyers

U.S. real estate still attractive to foreign institutional investors.

JM Family Enterprises' DC plan is big on alternatives

JM Family Enterprises' DC plan is big on alternatives

Seeking to reduce risk and volatility in the company's defined contribution plans, officials at JM Family Enterprises Inc. have been adding alternative investments ranging from commodities and hedge funds of funds to global tactical asset allocation and direct real estate.

BlackRock, TCW, others   gaining from PIMCO turmoil

BlackRock, TCW, others gaining from PIMCO turmoil

BlackRock, TCW, Vanguard, Baird Advisors and DoubleLine saw the largest inflows to their bond mutual funds in October, following William H. Gross' departure from PIMCO on Sept. 26, Morningstar Inc. reported.

Popularity:  Way to explain performance

Popularity: Way to explain performance

Two well-known researchers are upending the fundamental standard of using a risk-and-return framework to explain relative performance of different asset classes and different securities.

Corporate Japan might take lesson from GPIF

Corporate Japan might take lesson from GPIF

The Government Pension Investment Fund's recent shift to more aggressive investment targets could be followed soon by significant reforms to Japan's corporate retirement system.

EU threat of soft-dollar ban still alive, raising questions for managers

The possibility of European regulations banning the use of soft dollars for third-party research is alive and well, despite talk in the U.K. and Europe that regulators would settle for something that falls short of a ban.

We need your help to make the P&I 1,000 issue better

Pensions & Investments' data reporting is nothing without our readers' cooperation. In recognition of that, we are providing, free of charge, full historical access to the P&I Research Center to retirement plan executives who complete the survey form for the P&I 1000.

Federal workers prep for retirement plan changes

Congress likely to seek contribution hikes to offset budget spending.

High court won't review fiduciary breach, stock drop cases

The U.S. Supreme Court this month declined two cases involving defined contribution plans.

Booming derivatives costs are welcome news for ETFs

Welcome to “intended” consequences.

Jim Mosman, former CalSTRS CEO and NTCR executive, dies

Jim Mosman, former CEO of the California State Teachers' Retirement System and former executive director of the National Council on Teacher Retirement, died Nov. 4 in an apparent suicide.

Special Report

Investment consultants directory: 2014

Advice-only business still dominates but cedes growth to OCIO sector.

Frontlines

Editorial

The risks of multiline firms

The risks of multiline firms

The Department of Labor made the right decision in granting Credit Suisse AG and its related entities a temporary exemption to continue to provide asset management services, at least for the short term, after its banking unit pleaded guilty to assisting U.S. citizens avoid taxes.

Other Views

Fiduciary concerns, complexities with the SEC's pay-to-play rule

Fiduciary concerns, complexities with the SEC's pay-to-play rule

The Securities and Exchange Commission's recent announcement of its first enforcement action under the “pay-to-play” rule it adopted in 2010 demands the attention of those responsible for governmental retirement plans to understand the regulation and its implications in order to secure the maximum protection for their beneficiaries.

Everyone is focusing on the wrong goal in retirement planning

Robert C. Merton, 1997 Nobel laureate, wrote in the July-August issue of Harvard Business Review: “The seeds of an investment crisis have been sown. The only way to avoid a catastrophe is for plan participants, professionals and regulators to shift the mindset and metrics from asset value to income.”

Industry Voices

Glidepath evaluation: Moving past 'to vs. through'

Glidepath evaluation: Moving past 'to vs. through'

Given the complexities associated with target-date funds' many moving parts, the growing number of distinct approaches and the need to look beyond the record keeper's proprietary offering, choosing the right suite of TDFs can be a daunting responsibility.

Department: Portfolio Management

Evaluating plan hibernation vs. plan termination

Evaluating plan hibernation vs. plan termination

For the nearly 50% of corporate pension plans that are either closed or frozen, the choice to terminate the plan is essentially a timing decision, because it is unlikely that a sponsor would elect to manage the plan until the last benefit is paid to the last surviving participant.

Tradewatch

People Moves