Table of Contents

Issue Date: Monday, September 19, 2016

News

More hedge fund firms seeing a decline in assets

More hedge fund firms seeing a decline in assets

In a sharp reversal of fortune, the majority of hedge fund and hedge funds of funds experienced asset declines ranging from slight to extreme in the year ended June 30.

Firms resurrect non-agency RMBS market

Firms resurrect non-agency RMBS market

Hedge funds, money management firms and alternative investment managers are doing their best to revive the non-agency residential mortgage-backed securitization market, which has been almost dead since the financial crisis.

Small firms could hit wall under tight industry conditions

Small firms could hit wall under tight industry conditions

Institutional money managers are competing with each other for the same piece of a pie that is not growing. That means a growing number of traditional equity and fixed-income management firms are likely to close in the next few years, say consultants and analysts.

GPIF aims to be trailblazer for ESG investment in Asia

GPIF aims to be trailblazer for ESG investment in Asia

Japan looks set to become the beachhead in Asia for environmental, social and governance-focused investment, and the country's huge Government Pension Investment Fund is ready and willing to lead the charge.

Governments told growth depends on open wallets

Governments told growth depends on open wallets

Money managers and institutional investors have a message for governments in developed markets: It's time to spend some money.

Barings restructures to fill institutional clients' need

Barings restructures to fill institutional clients' need

Realizing that institutional clients were moving toward fewer managers with broader capabilities, Tom Finke and his colleagues had a vision: consolidate several managers under a globally recognized brand, with an emphasis on consistency and an institutional approach.

Eddy Awards spotlight education efforts; enter now

Eddy Awards spotlight education efforts; enter now

Time is running out. The deadline for entering Pensions & Investments' 2017 Eddy Awards is three weeks away.

Africa investment heats up as pension funds stay local

Africa investment heats up as pension funds stay local

African private equity is having its moment in the sun, with pension funds on the continent ready to invest in their own backyard as investment banks continue to retreat from lending and domestic strategies mature.

Amid low returns, consolidation of fund asset management likely

Amid low returns, consolidation of fund asset management likely

Consolidating money management for state or provincial public pension plans under one entity is a concept that has been accepted both in Canada and in a few U.S. states, leading at least one analyst to suggest that investment expectations of the future will require other states to do the same.

States start hard work on  private-sector savings efforts

States start hard work on private-sector savings efforts

With more than half of the states considering retirement savings programs for eligible private-sector workers, the next challenge is to build them, from operations to investment menus.

ETF providers face uphill battle with target-date funds

ETF providers face uphill battle with target-date funds

A handful of money managers have recently launched all-ETF target-date series, hoping to penetrate the fast-growing target-date market that is the most popular qualified default investment alternative for defined contribution plans.

Lenders giving residential mortgage-backed securities a rehab

Lenders giving residential mortgage-backed securities a rehab

Lenders are working with different structures to both increase the supply of residential mortgage-backed securities and to relieve concerns of investors who fear that all the problems with securitization — brought to light during the financial crisis — haven't been addressed.

Voya CEO sees customized strategies as way to grow

Voya CEO sees customized strategies as way to grow

As money managers face growing fee pressure from institutional customers, Voya Investment Management's new CEO, Christine Hurtsellers, is actively shifting her firm's focus to strategies that earn more.

Conference welcomes everyone — from princes to swamis

Conference welcomes everyone — from princes to swamis

After reading a Sept. 5 P&I Frontlines about Prince Wenceslas von Liechtenstein becoming chief executive officer of Dalton Strategic Partnership LLP, I wondered if the Council of Institutional Investors could accommodate such a title in the online registration for its fall conference.

Brexit's silver lining: Loosening fiscal policy

Brexit's silver lining: Loosening fiscal policy

One developed market may have had the push - and opportunity - it needed to begin loosening fiscal policy, said sources.

Special Report

The state of hedge funds and funds of funds 2016

The state of hedge funds and funds of funds 2016

In a sharp reversal of fortune, the majority of hedge fund and hedge funds of funds experienced asset declines in the year ended June 30.

Online

Frontlines

Editorial

Court puts a crack in the dike

Court puts a crack in the dike

A decision by the California Court of Appeal appears to open a pathway to loosening state constitutional provisions prohibiting diminishment or impairment of public retirement benefits for active participants.

Approve those union benefit reductions

The Obama administration is in denial about the necessity of cutting pension benefits under the Multiemployer Pension Reform Act of 2014 to try to put distressed multiemployer plans on sounder financial footings and make them more sustainable. It must face reality and order the Treasury Department to stop blocking action.

Other Views

An overlooked aspect of ESG

During the 40-plus years of my association with public employee retirement, I have witnessed a number of initiatives targeted at achieving collateral (non-financial) objectives through the investments made, or avoided, by public employee retirement systems.

The silver lining behind global aging

Many institutional investors have not traditionally been organized to implement investment ideas that are broad, thematic and straddle traditional asset classes. Those that have factored in longevity have largely done so focused on the implications for liabilities and longevity risk in their portfolios.

People Moves