Table of Contents

Issue Date: Monday, July 7, 2014

News

Investors' paths diverge on fossil fuels

Investors' paths diverge on fossil fuels

Public pension funds are lagging behind endowments and foundations in divesting investments in fossil-fuel companies choosing instead to engage energy companies through discussions and shareholder resolutions.

Outsourced assets top $1.2  trillion after a 26% increase in a year

Outsourced assets top $1.2 trillion after a 26% increase in a year

Investment outsourcing gained steam as assets managed worldwide for institutional investors rose 26% in the year ended March 31.

New Russell owners likely to keep only indexing unit

New Russell owners likely to keep only indexing unit

Russell Investments' asset management and consulting businesses will most likely be sold by the London Stock Exchange Group PLC, which is purchasing the entire firm for $2.7 billion, sources say.

Barclays suit another black eye for dark pools

Barclays suit another black eye for dark pools

A lawsuit filed by New York state against Barclays PLC was the latest hit to the image of dark-pool trading, providing yet another prod to increase trading venues' transparency while also potentially opening up dark-pool operators to broader legal action from governmental agencies.

Henderson CEO seeks institutional balance

Henderson CEO seeks institutional balance

Andrew Formica has big plans for Henderson Global Investors Ltd. — namely, making good on the global element of its name and restoring the balance between its institutional and retail businesses.

Infrastructure funds not the kind investors prefer

Infrastructure funds not the kind investors prefer

More institutional investors might invest in infrastructure if there were more longer-lived investment structures, such as open-end funds invested in stable projects, consultants say.

GAO urges Form 5500 improvements

Federal pension regulators could do more to improve the reporting of investment and fee information on Form 5500, the Government Accountability Office said in a report issued Monday.

End of prudence presumption raising employer stock questions

End of prudence presumption raising employer stock questions

The U.S. Supreme Court ruling in Fifth Third Bancorp. et al. vs. Dudenhoeffer et al. has injected uncertainty into defined contribution plans' use of employer stock in investment menus.

Precedent is upheld on class-action lawsuits that are spurred by stock losses

Precedent is upheld on class-action lawsuits that are spurred by stock losses

Pension funds and other institutional shareholders pursuing securities class-action lawsuits got a big vote of confidence from the Supreme Court in late June that could lead to more scrutiny of corporate and market practices, and more financial recovery, some experts say.

Proxy access support reaches new level

Proxy access support reaches new level

More proxy access proposals have won a majority level of shareholder support this year than in any other year, leading one asset owner executive to conjecture a tipping point has been reached in terms of investors and management embracing the concept.

First SEC case on pay-to-play sends a message

First SEC case on pay-to-play sends a message

The first enforcement case brought under the SEC's pay-to-play rules has increased awareness of the extent of the regulations, and their impact on managers and investors.

Canadian pension funds putting down roots abroad

Canadian pension funds putting down roots abroad

More large Canadian pension funds and the crown corporations that manage their assets are opening offices beyond their borders, looking to enhance their alternative investments outside of Canada.

Risk from liquidity to regulation a concern for investment execs

Risk from liquidity to regulation a concern for investment execs

Money managers and asset owners are wrestling with how to help employees manage their investments to provide adequate retirement income in a defined-contribution-dominated world, said speakers at Pensions & Investments' Investment Innovation & the Global Future of Retirement conference, held in New York June 22-24.

Oranges and a live goat: Some tricky questions in governance addressed

Oranges and a live goat: Some tricky questions in governance addressed

In the central conversation on the topic, “Global Plan Governance,” Jonathan Boersma, executive director, global investment performance standards and head of professional standards at the CFA Institute, said a recent World Bank education session on trustee ethical conduct posed tricky questions about gifts. One was a live goat.

Pluses, minuses of retirement policies around globe analyzed

Pluses, minuses of retirement policies around globe analyzed

Retirement policy was the topic of conversation for the closing roundtable of Pensions & Investments' inaugural Investment Innovation and the Global Future of Retirement conference.

Bogle: Mandates not needed; compensation 'out of control'

Bogle: Mandates not needed; compensation 'out of control'

John C. “Jack” Bogle is firmly against mandates when it comes to everything, from setting a single retirement age to requiring that employers set up retirement savings plans to creating a retirement income adequacy target.

Education secretary pushes need for financial literacy

Education secretary pushes need for financial literacy

Financial literacy needs to be a staple of the American education system, U.S. Secretary of Education Arne Duncan said at Pensions & Investments' Investment Innovation and the Global Future of Retirement conference.

They said it, we tweeted it

Quotes and quips from the Investment Innovation and Global Future of Retirement conference speakers shared on the Internet by P&I reporters and editors.

Firms differ on value of performance reporting

Firms differ on value of performance reporting

Unlike most other segments of the money management industry, investment outsourcing lacks standardized investment performance reporting.

Governance key for Henderson CEO

Governance is high on the list of concerns for Henderson Global Investors Ltd. CEO Andrew Formica.

Court offers guidelines to determine trial likelihood

The U.S. Supreme Court's decision in Fifth Third Bancorp et al. vs. Dudenhoeffer et al. removed the presumption of prudence standard often used by defined contribution plans to defend their use of employer-stock against fiduciary-breach lawsuits when the company stock sank.

A good first half for equities

While equity markets worldwide continued to drift higher halfway through 2014, interest rates fell, surprising many.

Special Report

The state of investment outsourcing

Outsourced assets top $1.2 trillion after a 26% increase in a year.

Online

Corrections

Frontlines

Editorial

Court backs efficient market

Court backs efficient market

The U.S. Supreme Court made the right decision when it rejected a presumption of prudence as a defense in company stock-drop cases, replacing it with a presumption of market efficiency.

Other Views

Put a monkey in there? I prefer you guys

Barrick (Gold Corp. was created and grew) without any government support. Yes, the government is behind us. Barrick never received a dollar subsidy, but Barrick did contribute $8 billion in pure direct taxes paid in its existence. Barrick also ... is employing today 25,000 people.

States should step in to offer retirement options

States should step in to offer retirement options

Barbara Williams is a former aerospace worker in California who lost her piece of the American dream when that industry downsized. She lost her job, benefits and hope for a dignified retirement.

People Moves