Table of Contents
Issue Date: Monday, January 7, 2013
Tax preferences for retirement savings remain a potential target as Congress last week removed the immediate threat of the fiscal cliff and now must address required spending cuts.
New federal fee-disclosure regulations have enabled defined contribution plan executives to cut costs in multiple ways, ranging from negotiating lower fees for existing investment options to bargaining for less expensive institutional shares as well as collective trusts, consultants say.
Private equity firms are taking advantage of low interest rates to refinance their portfolio companies, packing on debt but also providing a long-awaited pay day for firms and their investors.
Institutional investment strategists generally paint an upbeat outlook for 2013, including the S&P 500 and emerging markets, while seeing little chance of recession in a weak but slowly strengthening economy.
The Washington outlook for retirement and investment policy in 2013 can be summed up in one word: revenue.
The new year is expected to be one of changes that will provide hedge fund managers with opportunity for better performance and new inflows from fresh sources, but lower revenues might result as institutional investors successfully push fees down.
Uncertainty caused by last-minute congressional negotiations to avert the fiscal cliff created pessimism about the economy and markets in the short term, according to Pension & Investments readers responding to a P&I/Oxford University survey.
Real estate is expected to remain in favor with investors in 2013 but good deals and managers with attractive investment opportunities will be harder to come by, industry insiders say.
Buyer confidence seems to have gradually returned to the U.S. asset management industry in 2012, as the deal value of U.S. mergers and acquisitions transactions increased from the previous year.
Fiscal year-end returns of the 25 largest U.S. endowments spanned a wide 910-basis-point range, from 8% to -1.1%.
Private equity in 2012 made a rapid recovery from the lows of the 2008 economic downturn, but firms may suffer a setback in 2013 amid the expected return of high valuations and easy credit, industry insiders say.
Pension fund, endowment and money management executives cited the eurozone crisis, China and the fiscal cliff among the top issues that occupied their minds in 2012, some of which continue to vex them as we enter the new year.
Ford Motor Co., Dearborn, Mich., sold $2 billion in 4.75% 30-year notes Jan. 3, mostly to finance accelerated contributions to its worldwide defined benefit pension plans this year and continue derisking its pension obligations.
On the riskiest and the best asset classes for the new year, Treasury bonds fell into both camps, depending on the strategist.
Hedge fund MKP Capital Management sold a minority stake to Dyal Capital Partners.
Japanese pension fund executives appear poised to tweak their bond allocations for the coming year more than their equity targets, even as promises of aggressive stimulus policies by the incoming prime minister, Shinzo Abe, have fueled explosive gains for Tokyo stocks.
Forecast optimistic for new year as most money managers and retirement plan executives see stronger economy, little chance of recession.
Deal values rise 43% in U.S., but EU debt crisis hurting Continent.
Once Congress gets past the fiscal cliff and takes steps to solve the country's long-term debt problem, it should turn its attention to strengthening the integrity of both defined benefit and defined contribution retirement plans.
Over the past decade, the governing boards of public pension funds and other institutional investors have acted swiftly to implement policies and procedures for monitoring U.S. securities class-action litigation.