Table of Contents

Issue Date: Monday, February 18, 2013

News

Closed pension plans face non-discrimination peril

Closed pension plans face non-discrimination peril

Employers that thought closing their defined benefit plans to new employees would simplify their pension decisions could be in for a rude surprise as they increasingly risk flunking non-discrimination tests.

Currency managers welcoming volatility

Currency managers welcoming volatility

Fears of a currency war marked by competitive devaluations have dominated headlines recently, but currency managers say more fundamental trends now are buoying their prospects following a difficult cycle that began with the global financial crisis.

Pundits ponder why Kashkari quit PIMCO

Pundits ponder why Kashkari quit PIMCO

Two months before his unexpected departure in January as head of global equities at Pacific Investment Management Co., Neel Kashkari told top California Republican Party officials he was giving up the asset management business because he wanted to run for governor.

NYC pension funds near goal of $3.5 billion in hedge fund investments

NYC pension funds near goal of $3.5 billion in hedge fund investments

The New York City Retirement Systems is two-thirds of the way toward completing investment of a $3.5 billion hedge fund portfolio on behalf of three of the city's five pension plans.

Investors get active over commodities

Investors get active over commodities

Institutional investors are growing weary of traditional commodities index investing, leading some to turn to other ways of capturing the long-term benefits of the asset class with less of the short-term volatility.

Pension execs encouraged to develop divestment policies

Pension execs encouraged to develop divestment policies

Pension funds facing demands to divest holdings in response to specific issues could take a more strategic approach by developing a divestment policy statement in the same way their standard of practice calls for adopting an investment policy statement, according to experts.

What's in your portfolio? Dell debt, most likely

What's in your portfolio? Dell debt, most likely

Without realizing it, defined benefit and defined contribution plans could be betting on a Dell Inc. turnaround.

Legg Mason affiliates back new CEO Sullivan

Legg Mason affiliates back new CEO Sullivan

Joseph Sullivan has Legg Mason affiliates' backs. And in the past five months, he worked to let them know that.

Years of pain have investors questioning good news

Risk levels continued their downward trend through the fourth quarter into 2013 with no sign of reversal, according to data from Axioma Inc.

Demand for innovation threatens biggest firms

Demand for innovation threatens biggest firms

Large money managers are facing threats to growing their business in the ever-expanding defined contribution market.

DC record keepers may face more float income lawsuits

DC record keepers may face more float income lawsuits

A lawsuit filed against Fidelity Investments by participants in several 401(k) plans might lead to other lawsuits over record keepers' use of float income.

Saint Louis University makes changes to 403(b), 401(a) plans

Saint Louis University makes changes to 403(b), 401(a) plans

Saint Louis University has transformed its retirement plans with nearly $1 billion in assets without hiring consultants and without issuing RFPs. Changes include reducing the number of investment options by more than 90%, reducing the number of record keepers by 75% and saving what the university anticipates will be $540,000 in plan costs annually.

Hot market, ETF popularity hurting securities lending

Pension funds, exchange-traded funds and securities lending are sharing the spotlight recently for all the wrong reasons.

Singapore's approach to endowments rare in region

Singapore's approach to endowments rare in region

The Singapore University of Technology and Design, launched by the city-state's government in collaboration with the Massachusetts Institute of Technology last year, is moving quickly to build what remains a rarity in Asia — an endowment fund capable of providing material support for the school's growth and development.

Asian tradition works against fundraising efforts

Market veterans say the lack of a tradition in Asia of alumni and high-net-worth individuals contributing to university endowments has made progress in building those funds in the region hard-earned.

Crain auto group has new group publisher

Crain auto group has new group publisher

KC Crain has been named group publisher of the Automotive Group at Crain Communications Inc., Pensions & Investments' parent company.

Frontlines

Editorial

Credit-rating downgrade

Credit-rating downgrade

The Justice Department's accusations of fraud against Standard & Poor's Financial Services LLC in issuing credit ratings on mortgage-related securities should draw attention to the investment practices of pension funds and other institutional investors that invested billions of dollars in the securities, lured by their supposedly high creditworthiness.

Other Views

Divesting is an exercise in real fiduciary care

Fiduciaries are the only class of investor legally obligated to care for other human beings. In recent decades, however, the fiduciary duty of loyalty has been turned on its head and converted into a duty to ignore other human beings. Financial returns are now considered more important than the interests of beneficiaries.

Letters to the Editor

Face to Face

All about the team at Ares

All about the team at Ares

Tony Ressler and Greg Margolies are not household names and they like it that way, as long as Ares Management keeps growing.