Table of Contents

Issue Date: Monday, February 17, 2014

News

Companies bracing for 1-2 retirement punch

Companies bracing for 1-2 retirement punch

Despite the growing drumbeat in Washington to stimulate more retirement savings, the prospect for real change is dim, and retirement plan sponsors are braced for more bad news from Congress and the White House.

BlackRock aims to find right formula for Asia-Pacific

BlackRock aims to find right formula for Asia-Pacific

The Asia-Pacific region has been the weak link in BlackRock Inc.'s global growth story in recent years, leading some market veterans to conclude the New York-based giant has yet to find a formula for success there.

New opportunities in private equity secondary market

New opportunities in private equity secondary market

Money managers are expanding their private equity secondary market investments to include infrastructure, real estate, energy and timber, ahead of what they expect to be a growing investment opportunity.

Declining high-yield market making money managers nervous

Declining high-yield market making money managers nervous

Money managers are getting worried about the global credit markets.

The British are coming! So are other Europeans

The British are coming! So are other Europeans

The tide is turning in the U.S.-to-U.K. flow of money managers: A slew of U.K. and European money managers are introducing, and in some cases expanding, their presence in the U.S.

Investors scrutinizing high carbon emissions risk

Investors scrutinizing high carbon emissions risk

Exposure to companies with extensive fossil fuel reserves and companies with high carbon emissions ranks as the top concern among trends in environmental, social and governance issues, driving pension funds to examine the risks and to craft responses.

Partnerships and acquisitions pay off south of the border for Principal

Partnerships and acquisitions pay off south of the border for Principal

Principal Financial Group Inc. claimed 18% of its operating profit from money management operations in Latin America in 2013, the result of a series of bold moves in a treacherous market where few other global managers have found success.

Collateral management gets spotlight

Collateral management gets spotlight

Asset owners are taking a broader view of collateral management, with more attention being paid by the front office to what historically was a back-office function.

Passive funds see more action as index options gain popularity in DC

Defined contribution plan executives are adding more passively managed equity investment options to their plans' lineups, moving beyond domestic large-capitalization equity index funds such as those that mirror the Standard & Poor's 500 stock index.

More money managers bulking up to chase institutional clients

More money managers bulking up to chase institutional clients

A growing number of U.S. money managers of all sizes are expanding their sales teams to cater specifically to institutional clients.

Chart feature: Alternatives scorecard

A look at how institutional investors' alternative investment portfolios performed through Dec. 31.

P&I New York office gets a new address

The New York office of Pensions & Investments has moved, part of parent Crain Communications Inc.'s relocation to a new building.

Wynne joins P&I in Chicago office

Wynne joins P&I in Chicago office

Trilbe Wynne has joined Pensions & Investments as editorial assistant in the Chicago office.

P&I to host forum on future of retirement

Pensions & Investments is launching a conference, taking place this summer, that opens a long-needed debate about the long-term future of retirement worldwide, covering the most critical issues facing retirement plan executives.

Convergence of currencies  is main theme of 4th quarter

Convergence of currencies is main theme of 4th quarter

The risk story in the final quarter of 2013 was largely about currency, particularly beyond the U.S., according to the Axioma Insight Quarterly Risk Review.

Skepticism needed when evaluating new strategies

A shift to quantitative investment strategies, including indexing, has lowered the bar for market-validated manager track records, specifically for just-in-time exchange-traded products that address acute concerns like duration risk, credit risk or currency exposure.

Ultrashort claims top 2 spots, but high yield maintains domination

Ultrashort claims top 2 spots, but high yield maintains domination

High-yield strategies, along with ultrashort-duration strategies, dominated the list of top-performing fixed-income managers for the year ended Dec. 31, according to Morningstar Inc.'s separate account/collective trust database.

Small-cap growth strategies continue to expand reach in top 10

Small-cap growth strategies continue to expand reach in top 10

Small-cap stocks, particularly growth strategies, dominated the best-performing domestic equity strategies for the year ended Dec. 31, according to Morningstar Inc.'s separate account/collective investment trust database.

Web Extra: Adoption of auto enrollment slows down

Automatic enrollment has been anything but automatic in recent years, despite praise from consultants and promotion by providers and others.

Web Extra: More pension executives are using daily monitoring

More corporate defined benefit plan executives are keeping their fingers on the pulse of their plans' funding on a daily basis as they move to more risk-based investment strategies.

Web Extra: Deals might be hard to find for newly flush buyout funds

Private equity firms might have a hard time spending the treasure-trove of capital they've raised recently if the supply of large deals does not pick up soon, industry insiders say.

Web Extra: Rising equities, low interest rates create split in derisking approaches

An improvement in defined benefit plan funding has triggered a tension within corporations between an investment outlook to pursue rising equity markets and risk management in pursuit of better asset-liability matching in spite of low interest rates, said Michael A. Moran, pension strategist, Goldman Sachs Asset Management LP, New York.

Web Extra: Library foundation assets of $2.5 billion tallied in Wilmington research

Library foundations supporting presidential and public libraries have an estimated combined $2.5 billion to $3 billion in assets, according to new research from Wilmington Trust N.A.

Web Extra: 12 U.S. companies plan to add total of $5 billion to pension funds in 2014

A dozen U.S. corporations will make a collective contribution of about $5 billion to their pension funds this year.

Special Report

Top-performing money managers: Q4 2013

In fixed income, ultrashort claims top 2 spots, but high yield maintains domination. Meanwhile in equities, small-cap growth strategies continue to expand reach in top 10.

Frontlines

Editorial

The pension fund cookie jar

The pension fund cookie jar

Corporate defined benefit plans, still struggling to raise funding levels, are being used, in the words of one actuarial consultant, as a cookie jar by Congress to finance unrelated federal spending.

Other Views

Web Extra: A new cop at the SEC

With Mary Jo White now leading the Securities and Exchange Commission, senior executives of investment management firm and officials of fiduciary fund boards as well as compliance professionals alike should recognize the need to step up their game to avoid a potential run-in with the new cop on the beat.

Letters to the Editor