Table of Contents
Issue Date: Monday, May 12, 2014
Expanding the public retirement system to the private sector moved to political reality from abstract concept this year, as 16 states either are considering legislation or taking the first steps toward implementing new approaches.
CalPERS portfolio managers have begun cutting the system's $5.3 billion hedge fund allocation in half, signaling a shift away from the asset class for the nation's largest defined benefit plan, say multiple sources familiar with the pension plan's operations.
Pension fund executives across the globe are turning a serious eye to the crisis that is rumbling on in Eastern Europe, as its effect on investment performance starts to hit home.
Publicly traded money managers saw rather anemic gains in assets under management for the quarter ended March 31, due in part to defined benefit plans playing a smaller role in the institutional investment industry and also because equity markets saw only slight growth.
The South Carolina Retirement System Investment Commission should rehab governance and investment processes to better manage the state's $29.9 billion in retirement assets, a fiduciary performance audit found.
Pension funds in Europe remain in limbo over the potentially damaging effects that a European financial transaction tax could have on their investments and participants' savings.
While four transition management providers have left the business in the last year, two big-name financial firms are making a go at it with U.S. defined benefit plans.
Small-cap growth stocks dominated the list of best-performing domestic equity strategies for the year ended March 31, according to Morningstar Inc.'s separate account/collective investment trust database.
How U.S. real estate has performed during the five years through March 31, 2014, according to the NCREIF Property index.
High-yield strategies dominated the list of top-performing fixed-income managers for the year ended March 31, according to Morningstar Inc.'s separate account/collective trust database.
Institutional investors that put money into Energy Future Holdings debt are finding those investments could help dull the pain of their substantial private equity losses in the failed energy company.
Ontario's proposal for a mandatory provincial defined benefit plan to supplement the Canada Pension Plan is a long way from being put in place.
The funding ratios for U.S. corporate plans dipped in April, according to recent reports from Wilshire Consulting, BNY Mellon Investment Management, Milliman and Mercer. All four cited rising liabilities and modest asset returns as the reasons for the drops, which ranged from 0.6 to 1.1 percentage points.
High-profile acquisitions and mergers among record keepers will continue as the firms cope with pressure for lower fees and more services in a low-margin business.
With the very public launch of an ETF-only 401(k) plan option by Charles Schwab Corp., might some defined contribution plan executives finally be willing to give exchange-traded funds a try?
Large publicly traded banks' assets under custody and administration continued their slow but steady climb through 2013 into the first quarter of this year, and their asset servicing revenue saw similar percentage gains.
Gary Becker, recipient of the 1992 Nobel Memorial Prize in Economic Sciences, left behind a human-behavior approach to the study of economics, including a principle used to model target-date funds and defined contribution plan glidepaths.
CalPERS filed an amicus brief in the 6th U.S. Circuit Court of Appeals in Cincinnati regarding the city of Detroit's bankruptcy case.
Employers considering making significant changes to their U.K. defined benefit pension funds must take care not to breach their “Imperial duties” – that is, acting in good faith, according to lawyers in the U.K.
Institutional investors at the Milken Institute Global Conference in Beverly Hills, Calif., were investigating new ways of investing that would provide risk-adjusted returns.
Registration for Pensions & Investments" third annual Best Places to Work in Money Management closes May 16.
nGreat-West Financial, Greenwood Village, Colo., in April announced it had agreed to buy the large-plan institutional defined contribution business of J.P. Morgan Asset Management, New York. The deal is expected to close during the third quarter. The combined record-keeping business will have $387 billion in assets under administration for 6.
(updated with correction)
Meaghan Kil-roy has joined Pensions & Investments as an online reporter in the Chicago office, writing primarily for P&I Daily. Ms. Kilroy previously was a reporter intern for The West Roxbury and Roslindale Tran-scripts based in Needham, Mass., and The Kane County Chronicle in St. Charles, Ill.
Small-cap stocks and high-yield debt remain at the top another quarter.
The Coca-Cola Co. equity compensation plan for executives won the approval of 83% of the shares voted at its recent annual meeting, but left the company with an ambiguous mandate. Some major institutional investors that supported the plan might have reconsidered had they known other pension funds opposed it and known Warren Buffet thought the plan was “quite excessive.”
Cliff Asness, writing in Industry Voices, calls the efficient market hypothesis the investment management industry's North Star.
Manulife Asset Management's global multi-sector Strategic Fixed Income Strategy generates strong, consistent returns by investing in global government and corporate bonds, foreign exchange, and other fixed income instruments. Portfolio Manager Dan Janis explains how he scours multiple sectors, countries and currencies around the world to add value and reduce risk.