Table of Contents

Issue Date: Monday, November 26, 2012

News

Fiscal cliff has money managers tiptoeing

Fiscal cliff has money managers tiptoeing

The fast-approaching fiscal cliff is causing some money managers to abandon traditional year-end portfolio moves in order to play it safer. Still other managers already are focusing on the next big crisis when Washington tackles the federal budget deficit.

Digging out from hole of pension underfunding

Digging out from hole of pension underfunding

Pension executives will continue to rely on creative investing, higher contributions and pension buyouts or lump sums to make any improvements in funded status in 2013.

Meet Illinois' $100 billion python: Squeezy

Meet Illinois' $100 billion python: Squeezy

Illinois Gov. Pat Quinn has taken an unusual approach to raise public awareness of the state's pension problem.

Plans, providers proactive on fee regulations

Plans, providers proactive on fee regulations

Defined contribution executives cut median plan costs to a record low for the 15-month period ended March 31, according to investment consultant NEPC LLC, which has been tracking DC plan costs for seven years.

Consultants at center of pension fund shift toward streamlining

Consultants at center of pension fund shift toward streamlining

Public pension funds' hunt for money managers is moving toward a streamlined search process and away from the traditional RFP, a shift driven by investment consultants.

New Mexico fund marks progress, plots more reform

Once caught in the middle of a national pay-to-play scandal, the $16 billion New Mexico State Investment Council shifted $7 billion to new managers while terminating all of its public markets managers and all but one of its consultants.

Split of alpha, beta shifting more risk back to money managers

Split of alpha, beta shifting more risk back to money managers

Institutional investors are increasingly separating beta and alpha in their fee structures to shift more of the investment risk back to their money managers.

Aletheia struggling to stay afloat

Aletheia struggling to stay afloat

Peter Eichler Jr., CEO and co-founder of Aletheia Research and Management Inc., blames Aletheia Research and Management Inc.'s Chapter 11 filing, in part, on costs of a lawsuit with his former partner.

New Rocaton tool allows plans to assess funded status risk

A new free tool from Rocaton Investment Advisors LLC allows corporate pension plans to assess and identify funded status risk in their plans at a time when investment returns aren't keeping up with soaring pension liabilities.

Funds draw big attention with small-business debt

Funds draw big attention with small-business debt

Institutional investors increasingly are investing in private equity funds leveraged with Small Business Administration debt for their promise of higher returns.

European money manager divestments still a hard sell

European money manager divestments still a hard sell

Rabobank's prolonged attempt to sell Robeco Group indicates more trouble ahead for European asset management divestitures, wrapping up a year that so far has been more defined by failures than successes.

UniSuper striking own path with internal management, oversight

UniSuper Management Pty. Ltd., the A$32 billion (US$33.2 billion) superannuation fund for Australia's university and research sector, is venturing away from the beaten path in its efforts to lower fees, boost returns and better control volatility.

January great for small caps, but institutions not cashing in

Small-cap stocks are about to get a boost from something that historically has been responsible for nearly all outperformance over large-cap rivals: the month of January.

ETF trading choices can affect costs, execution

ETF trading choices can affect costs, execution

Pension fund managers considering expanding their use of exchange-traded funds must always bear in mind that trading ETFs is entirely different from trading stocks.

Special Report

Investment consultants directory: 2012

Consulting firms providing more money manager information as public pension plans move away from traditional RFPs.

Frontlines

Editorial

No need for new DC plan

No need for new DC plan

Sen. Tom Harkin, D-Iowa, proposes to improve pension coverage and retirement security by building a chair. That is, he would add a fourth leg to the shaky proverbial three-legged stool that defines the current retirement system to shore it up.

Enhancing transparency for swaps

Excerpts from remarks by Mary L. Schapiro, chairman of the Securities and Exchange Commission, before the Oct. 26 Regulatory Reform Symposium of the George Washington University Center for Law, Economics and Finance.

Department: Portfolio Management

Why long/short attribution is difficult

Why long/short attribution is difficult

Every client invested in a market-neutral portfolio wants to know how much value is added by the short positions. Answering this question is much harder than it appears. Indeed, there is no commercially available tool that yields a thorough, unbiased and widely accepted analysis of the contributions from the short side.

Tradewatch

People Moves

Face to Face

Centrica CIO Ghosh uses networking to find investment ideas

Centrica CIO Ghosh uses networking to find investment ideas

Networking landed Chetan Ghosh the job as CIO of Centrica PLC's pension fund and also brings him successful investment strategies.