Table of Contents
Issue Date: Monday, February 4, 2013
For the first time, defined contribution plan assets make up more than 30% of the nation's 1,000 largest retirement funds' coffers and more than a quarter of the top 200 plans' assets, according to Pensions & Investments' annual survey.
Institutional investors usually don't feel the impact of a single stock's price drop, but the woes inflicted by Apple Inc. in recent weeks are an exception.
Like Broadway producers working on a box office hit, private equity firm Raine Group is backing Trey Parker and Matt Stone of "South Park" and "Book of Mormon" fame — a team they believe has the chemistry and the talent to bring in investment results.
After years of persistent low interest rates and correspondingly low corporate and Treasury bond yields, the 10-year Treasury bond yield surpassed 2% intraday on Jan. 28. If sustained (it was 2.02% on Feb. 1), that could alter everything from discount rates and funding to asset allocations.
The so-called “great rotation” back into equities from bonds is unlikely to be seen in 2013 among most defined benefit pension funds in major markets, including the U.S., U.K. and Netherlands.
Investment in hedge funds among the 200 largest U.S. retirement funds continued its meteoric trajectory, jumping 20.3% to $134.7 billion in total hedge fund and hedge funds-of-funds in the year ended Sept. 30.
A fundamental tool of modern portfolio theory fails to account for unique risks of leverage, according to two investment managers.
Defense contractors, with an estimated $100 billion combined in pension assets, are some of the largest defined benefit plan sponsors in the U.S., but a federal budget crunch and new pension accounting rules that limit reimbursements are making it harder than ever for them to stay that way.
The Pension Benefit Guaranty Corp. raised alarms about the viability of the multiemployer defined benefit pension system in the U.S. when it sent three long-awaited reports to Congress on Jan. 29.
The largest publicly traded money managers depended on inflows for growth in the fourth quarter, as market returns grew tepid amid uncertainty over the presidential election and negotiations to avert the fiscal cliff.
Although the American Taxpayer Relief Act expands the opportunity for defined contribution plan participants to convert from a traditional pretax contribution option to a Roth after-tax contribution option, some industry professionals doubt there will be a surge of activity.
The Internal Revenue Service “anticipates issuing guidance later this year” on expanded Roth options for defined contribution plans contained in the American Tax Relief Law signed by President Obama on Jan. 2.
Institutional investors increasingly are inserting themselves into the Israel-Palestine dispute as they grapple with the thorny question of divesting their stock in some companies doing business in the occupied territories.
Total retirement assets for the Top 1000 universe of defined benefit and defined contribution plans jumped 12.3% in 2012.
For several years there has been a clash between the low interest rates generated by the Federal Reserve to stimulate the economy and the resulting rising pension contribution levels that have absorbed corporate cash.
Excerpt from remarks by Bruce Karpati, chief of the Securities and Exchange Commission Enforcement Division's Asset Management Unit, speaking Jan. 23 at the Private Equity International Conference in New York.
he following comments were overheard at a recent meeting of Debt-aholics Anonymous.