Table of Contents

Issue Date: Monday, August 22, 2016

News

Managers turn to deconstructing alpha and beta

Managers turn to deconstructing alpha and beta

At the request of their institutional clients, hedge funds-of-funds managers are researching ways to combine beta-isolating risk factors and alpha-producing hedge funds to offer cheaper, higher-return, more diversified strategies.

Restructurings can be a minefield for investors

Private equity fund restructurings in some cases might be a get-out-of-jail-free card for the general partner and a big source of business for alternative investment secondary market players, but for the funds' limited partners, such as pension funds and other institutional investors, it can be a minefield.

New target for fiduciary lawsuits

New target for fiduciary lawsuits

Nearly a dozen of the nation's largest universities are facing litigation over their 403(b) plans, accused of similar fiduciary-duty breaches that have bedeviled 401(k) plan sponsors.

Between a rock and a hard place

Between a rock and a hard place

As public pension plans disclose a second consecutive fiscal year of lackluster returns, amid projections of diminished investment earnings for the next decade, more public asset owners will have little choice but to lower rate of return expectations, consultants and analysts said.

Universities rebut critics of retirement plan management

Many universities sued in a recent string of 403(b) plan lawsuits are responding emphatically to criticism of their retirement plan management.

Ups and downs of passive vs. active

Ups and downs of passive vs. active

Defined contribution investors were selective in how they pursued passive and active investing strategies — adding to passively managed equity and actively managed fixed income while subtracting from actively managed equity and passively managed fixed income.

Commodities starting to pull away from market bottom

Commodities starting to pull away from market bottom

The saying that everybody has a price is beginning to ring true in the commodities sector, with some investors convinced the asset class is, in parts, becoming attractive.

Distressed debt managers eyeing Chinese market

Distressed debt managers eyeing Chinese market

Foreign distressed debt managers are eyeing the surge of non-performing loans on Chinese bank balance sheets for investment opportunities in a system that's long favored local managers.

Annuities an issue that won't go away soon

Annuities remain a big impediment to simplification and cost-cutting by 403(b) sponsors.

Zombie funds reborn on growing secondary market

Zombie funds reborn on growing secondary market

Restructuring private equity funds that are close to, or have reached, the end of their fund lives is a growing business for firms that invest on the secondary market — a business that could double by the end of this year, industry insiders say.

High-quality credit returns  to center stage

High-quality credit returns to center stage

Investment-grade credit is having its moment in the spotlight, thanks to a potent combination of central bank action, a search for yield and the recognition that conservatism in investment is key.

Business groups join together to query candidates

Business groups join together to query candidates

To get a better feel on where Hillary Clinton and Donald J. Trump stand on the issues, Pensions & Investments and 11 organizations recently sent the candidates some questions.

Corrections for Aug. 22, 2016

•Antonio Riera, a senior adviser of The Boston Consulting Group Inc., is based in the firm's Boston office. The wrong location was given in the page 3 story “Bridgewater making waves with dual-party valuation” in the Aug. 8 issue.

SEC to continue focus on managers, private funds

SEC to continue focus on managers, private funds

On track to beat last year's enforcement record and heading into a new fiscal year with possibly more staff and resources, officials at the Securities and Exchange Commission's enforcement division plan to keep focusing on investment advisers and private funds.

Reaching the pinnacle ... without oxygen

Reaching the pinnacle ... without oxygen

David Roeske will destroy your preconceptions of hedge fund managers as alpha dogs with a taste for luxury.

Chicago Teachers discovers $2.8M in overpayments

Chicago Teachers discovers $2.8M in overpayments

A misinterpretation of state pension law caused the Chicago Public School Teachers' Pension & Retirement Fund to overpay its retirees by nearly $2.8 million total between 2012 and 2014.

Year after Aug. 24, volatility spurs fewer market halts

Year after Aug. 24, volatility spurs fewer market halts

A year after trading halts at the opening of U.S. equity markets resulted in a $1.2 trillion loss in market value on Aug. 24, 2015, changes put in place by exchanges since then appear to have made it less likely that the markets can be overwhelmed by such halts.

Slowing economy worries endowment execs

Slowing economy worries endowment execs

Endowment and foundation executives are pretty worried about the threat to their portfolios from a slowdown in global growth, but they are just about equally split about the positive impact the election of either U.S. presidential candidate will have on their portfolios.

AJO tells LACERS it deserves watchlist

AJO tells LACERS it deserves watchlist

AJO LP did something a little different when a longtime investor placed the Philadelphia quant manager and hedge fund firm on watch for performance.

Closing an ETF takes careful deliberation by issuer

Closing an ETF takes careful deliberation by issuer

The ETF Deathwatch is no place for an exchange-traded product to live, but at least the neighborhood is crowded with nearly 500 ETPs on the list.

Academy committed to objective analysis

Academy committed to objective analysis

Your article, “Actuarial leaders disband task force, object to paper on public plan liabilities,” (Aug. 8, page 6) reflects a misunderstanding of both the process the American Academy of Actuaries uses for reviewing public statements and the reasons for the disbanding of the joint Academy/Society of Actuaries Pension Finance Task Force.

PPA in need of overhaul

PPA in need of overhaul

The law of unintended consequences is once again in evidence 10 years after the passage of the Pension Protection Act of 2006.

Investment-grade credit in Asia hard to ignore, managers say

Asian investment-grade credit is catching the attention of investors across the globe.

Don't procrastinate; get your Eddy entries together

Don't procrastinate; get your Eddy entries together

Don't delay! Pensions & Investments is accepting entries for the 2017 Eddy Awards.

P&I hires reporter and data editor

Pensions & Investments has hired two new staff members, in London and Chicago.

Questions for the 2 leading presidential candidates

Questions for the 2 leading presidential candidates

In the 30 years since 401(k) plans have gained acceptance, the 401(k) has become the most popular savings vehicle to help American workers achieve financial well-being in retirement.

Special Report

Online

Corrections

Frontlines

Editorial

PPA in need of overhaul

PPA in need of overhaul

The law of unintended consequences is once again in evidence 10 years after the passage of the Pension Protection Act of 2006.

Letters to the Editor

People Moves