Table of Contents

Issue Date: Monday, April 28, 2014

News

Corporate pension funding status rises to highest level since 2007

Corporate pension funding status rises to highest level since 2007

The average funding ratio for the 100 largest U.S. corporate defined benefit plans jumped to 93.5% in 2013 — more than 10 percentage points higher than the previous two years and the highest since 2007, according to Pensions & Invest­ments' annual analysis of corporate SEC filings.

Multiasset interest leads to a hiring wave

Multiasset interest leads to a hiring wave

Global money managers are looking to bolster their multiasset and diversified growth funds expertise in a bid to capture increased interest in the asset class and an anticipated boost to allocations from defined contribution plans.

Final verdict on Nuveen deal a few years away

Final verdict on Nuveen deal a few years away

Some Madison Dearborn Partners LLC investors might take a hit on the firm's investment in money manager Nuveen Investments — which it is selling to TIAA-CREF for $6.25 billion — but many are not going to abandon the firm just yet.

More changes ahead for N.C. retirement system

More changes ahead for N.C. retirement system

After years of controversy over the now-$86.1 billion North Carolina Retirement Systems' sole trustee structure, Treasurer Janet Cowell is about to work herself out of that job.

Retail investors behind firms' growth

Retail investors behind firms' growth

Money managers are seeing increased inflows in multiasset and alternative investment strategies from non-institutional clients, which some believe could be the beginning of a permanent shift.

Wrap availability puts stable value back on map

Wrap availability puts stable value back on map

Three stable value fund managers have this year lifted “soft closes” that prevented investments from most or all new clients, moves seen illustrating the continued strengthening of the stable value market.

Real estate is next big thing in administration

Real estate is next big thing in administration

Real estate fund administration might lag other alternatives back-office providers in terms of assets, but rising allocations in real estate and REITs by asset owners could send assets under administration in the sector skyrocketing in the near future.

BlackRock's new China license could give its ETFs a leg up

BlackRock's new China license could give its ETFs a leg up

BlackRock Inc.'s new license to invest directly in China's capital markets could prove a key to fending off increasingly fierce competition for the A-share exchange-traded fund business the giant New York money manager pioneered a decade ago.

Hedge fund inflows booming despite poor performance

Hedge fund inflows booming despite poor performance

Despite hedge funds having suffered the worst performance start to the year since 2011, industry assets hit a new peak of $2.7 trillion thanks to healthy net inflows.

China money market rush has managers excited

China money market rush has managers excited

Money management firms in China this year are seeing an Internet-fueled flood of assets into money market funds from a new generation of investors, a potential game changer in a region where people continue to keep the vast bulk of their savings locked in low-yielding bank deposits.

Bargaining pays off for public employees in Detroit

Bargaining pays off for public employees in Detroit

Detroit's 100,000 public employees will get a much better pension deal after negotiators for Detroit's two pension funds and the Retired Detroit Police and Fire Fighters Association bargained hard for days and nights over the city's proposed bankruptcy recovery plan.

Asset owners up pace of activity with hedge funds

Asset owners up pace of activity with hedge funds

Institutional investors were much more active hedge fund investors in 2013 than in the prior year, racking up a net total of $10.7 billion of investments, searches and terminations — a 16.7% growth rate.

Defendant, plaintiffs both find something to appeal in ABB ruling

Defendant, plaintiffs both find something to appeal in ABB ruling

Plaintiffs and a defendant have filed dueling requests to appeal a recent court ruling in the complex ERISA fiduciary-breach case of Tussey vs. ABB Inc.

P&I and DCIIA seeking innovative DC execs

P&I and DCIIA seeking innovative DC execs

Nominations for the 2014 Innovator Awards are due May 16.

WEB EXTRA: After big TIAA-CREF-Nuveen deal, boom predicted in manager mergers

WEB EXTRA: After big TIAA-CREF-Nuveen deal, boom predicted in manager mergers

In the wake of TIAA-CREF's purchase of Nuveen Investments Inc., industry watchers say there is more to come.

Collateral agreements increase amid new regulations, ISDA survey finds

Collateral agreements increase amid new regulations, ISDA survey finds

Regulatory requirements and increased best practices in swaps and derivatives trading have led to increases in collateral agreements, whether the trades are centrally cleared or not.

U.K. charge cap threatens diversified funds

One small potential fly in the ointment regarding the growth of multiasset and diversified growth funds is the U.K.'s recently announced charge cap on defined contribution investment offerings.

Forensic investigation at R.I. yields transparency progress

The review of the $86.1 billion North Carolina Retirement Systems follows a similar forensic investigation of the $8.3 billion Rhode Island Employees' Retirement System, Providence.

RiskWatch for April 28, 2014

RiskWatch for April 28, 2014

RiskWatch provides recent data on volatility and correlation, the two components of risk, for U.S. and global equity and fixed-income markets.

Corporate pension funds in Canada

A look at the defined benefit assets of the largest Canadian corporations.

Special Report

Balance Sheet 2014

The funded status of the top 100 corporate pension plans.

Online

Frontlines

Editorial

Tax-exempt but tax conscious

Tax-exempt but tax conscious

Even though pension funds and other tax-exempt institutional asset pools don't pay taxes on their investment income, the taxes paid by the companies in their investment portfolios should concern institutional investors.

Other Views

The CFA Institute's view of the Pershing Square, Allergan, Valeant deal

The CFA Institute's view of the Pershing Square, Allergan, Valeant deal

When looking at the situation from 10,000 feet, there might be reason to suspect some unethical conduct occurred with Pershing Square Capital Management LP's purchase of shares and options totaling 9.7% of Allergan Inc.

Requiring greater accountability of MLPs for investors

n recent years, master limited partnerships have gained increasing popularity among stock investors.

Don't look to DC as way to address DB funding crisis

Lack of understanding about funding costs clouds the debate over public pension reform.

Industry Voices

Hope is not a strategy

Hope is not a strategy

Advice for marketing asset management services.

Good news/bad news redux: Longer lives, higher costs

Good news/bad news redux: Longer lives, higher costs

The new mortality tables likely will become the basis of lump-sum calculations and pension funding valuations in the near future, as well as a standard for pension accounting measurements.

People Moves