Table of Contents

Issue Date: Monday, January 20, 2014

News

North Carolina considers end to sole trustee role

North Carolina considers end to sole trustee role

The number of public pension systems with a sole trustee might shrink to two from three, as North Carolina Treasurer Janet Cowell launches a wholesale review of the pros and cons of the approach.

Money managers piling into China through RQFII program

Money managers piling into China through RQFII program

A growing number of money managers are turning to the renminbi qualified foreign institutional investor program as their conduit of choice to provide clients with direct exposure to China's domestic stock and bond markets.

Great year anticipated for hedge fund startups

Great year anticipated for hedge fund startups

2014 is shaping up to be one of the most active years for hedge fund launches since before the financial crisis.

Private equity firms expected at head of the line of Russell bidders

Private equity firms expected at head of the line of Russell bidders

Northwestern Mutual Life Insurance Co. has put Russell Investments, its investment management and consulting business, up for sale.

CalPERS grooming next generation

CalPERS grooming next generation

CalPERS trustees are developing contingency plans to find replacements for Chief Investment Officer Joseph Dear, CEO Anne Stausboll and other top staffers in the event they can no longer serve in their roles.

Custodians feeding clients' appetites for data

Custodians feeding clients' appetites for data

Asset owners are hungry for data beyond performance analytics, spurring custodians to broaden their offerings and find another way to expand their revenue base.

Equities give pension funds worldwide a leg up

Strong performance across most equity markets in 2013 bolstered estimated average investment returns for pension funds in six major markets, delivering a degree of optimism for the year ahead.

Infrastructure independence adding pressure

Infrastructure independence adding pressure

A move by an increasing number of infrastructure investors into direct and co-investments is putting more pressure on investment consultants, already squeezed by money manager competition and investor efforts to lower fees.

Location,  location, location  doesn't apply to small firms

Location, location, location doesn't apply to small firms

U.S. boutique money managers are finding it easier to garner substantial foreign assets without setting up an overseas satellite office or hiring an executive with boots on the ground.

University of California slashes fees in revamp of 3 DC plans

University of California slashes fees in revamp of 3 DC plans

The University of California system has engineered a major restructuring of its three defined contribution plans aimed at cutting fees and simplifying investment choices for 43,000 participants investing a total of about $17.5 billion.

Year ends on a high note for pension funding

Year ends on a high note for pension funding

December saw continued improvement in the funded status of U.S. corporate defined benefit plans, according to monthly reports from BNY Mellon Investment Management's investment strategy and solutions group and Milliman.

Bad medicine

A recent paper says shareholders should be concerned when management teams adopt poison pills in response to hedge fund activism.

Subadvisory deals open ETF doors for many firms

In early January, State Street Global Advisors, which manages $392 billion in SPDR ETFs, launched three actively managed exchange-traded funds with MFS Investment Management. That same week, Emerging Global Advisors and The TCW Group announced plans to market three emerging markets investment-grade bond index ETFs under the EGShares brand with TCW serving as subadviser.

Union not happy with N.C. treasurer's push into fee-heavy investments

Union not happy with N.C. treasurer's push into fee-heavy investments

The State Employees Association of North Carolina has stepped up pressure on state Treasurer Janet Cowell in recent months as she prepares to flex newly won legislative authority to raise the alternative investments allocation of the $83.1 billion North Carolina Retirement Systems, Raleigh.

Special Report

Small money managers

Smaller firms yield full-size performance in P&I's review of 12 investment strategies.

Online

Frontlines

Editorial

Ominous tales of three cities

Ominous tales of three cities

A farewell speech by Michael Bloomberg in New York, a new report on the future of Los Angeles and concerns expressed by Chicago's mayor all underscore the need to address the looming financial crisis that affects the country's three largest urban centers.

Other Views

Flaws of adopting cost cutting in switching to DC plans

Thinking back to 2007 before the financial crisis public pension plans in the aggregate had nearly 90% of the assets on hand required to pay retirement benefits due decades in the future. However, like all investors, public pension funds took a deep hit when the financial markets melted down in 2008.

Misdirected impulse to shift from DB plans

Although often assumed to save money, defined contribution plans are inefficient compared with defined benefit plans, which benefit from risk pooling, economies of scale and higher investment returns.

Department: Portfolio Management

Fundamentals set to take on new investing importance

Fundamentals set to take on new investing importance

With the recent announcement of Fed tapering due to start in January and the expectation of tighter U.S. dollar policy as normalization of growth gets underway, the investment landscape is likely to be transforming.