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.
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.
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.
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 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.
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.
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.
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.
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.