Table of Contents

Issue Date: Monday, August 4, 2014

News

Shadow capital's growth could change private equity, real estate

Shadow capital's growth could change private equity, real estate

The growing popularity of direct investment and co-investment in private equity and private equity real estate is threatening to change the general partner-limited partner relationship.

Poor returns forcing CalPERS to cut cord on health-care fund

Poor returns forcing CalPERS to cut cord on health-care fund

CalPERS is ending its unique experiment as the sole limited partner of Health Evolution Partners Inc., a private equity firm that focuses on health-care companies.

Global insurer outsourcing to grow with EU rule

Global insurer outsourcing to grow with EU rule

Solvency II is reaching far beyond its European Union origin, placing capital constraints on insurance asset allocation globally just as the low-yielding environment is pushing the boundaries of portfolio diversification.

Church-plan status under increased scrutiny

Church-plan status under increased scrutiny

A growing number of lawsuits and some key court rulings are making it harder for church-affiliated defined benefit plans to be exempt from the Employee Retirement Income Security Act.

Legg Mason sees expansion hopes  in Martin Currie

Legg Mason sees expansion hopes in Martin Currie

Although Martin Currie Ltd. has been struggling with underperforming strategies and plummeting assets, Legg Mason Inc. executives saw the Edinburgh-based boutique as the ideal firm to help expand Legg Mason's active non-U.S. equity capabilities.

Publicly traded managers' growth propelled by a rising stock market

Publicly traded managers' growth propelled by a rising stock market

Most publicly traded money managers reported higher earnings in the second quarter, as rising equity markets increased overall assets.

Singapore's GIC takes small steps in its direct private equity portfolio

Singapore's GIC Pte Ltd. has made a growing number of small-scale private equity investments this year, each amounting to between two and three basis points of the sovereign wealth fund's estimated portfolio size.

U.S. remains on sidelines as RQFII expands

U.S. remains on sidelines as RQFII expands

Three major financial centers in Europe have it. Four major financial centers in Asia also have it. But the U.S. is yet to be awarded a quota that will allow money managers to market and invest offshore in the China securities markets.

Insurance subsidiaries spreading their wings

Insurance subsidiaries spreading their wings

More money managers that started life as insurance-company investment units are making a concerted effort to grow their in-house capabilities to increase the ratio of third-party assets.

Factor indexes are redefining alpha, MSCI exec maintains

Equity strategies that provide systematic exposure to factors such as value, size and momentum are helping redefine “alpha” in a way that will raise the bar for managers commanding active fees, contends a senior executive with MSCI Inc.

Firms turning to overlays for transition management

Firms turning to overlays for transition management

The changing landscape in transition management and the desire for increased returns on cash have generated new interest in a longtime offering — overlays. The changing landscape in transition management and the desire for increased returns on cash have generated new interest in a longtime offering — overlays.

Funds see double-digit returns thanks to equities and MLPs

Double-digit returns appear to be the norm for pension funds reporting for the year ended June 30, driven by strong equity markets.

Money market changes worrying DC executives

Money market changes worrying DC executives

New rules governing money market funds provide a quantum of solace but also a dose of uncertainty to defined contribution plan executives managing capital appreciation options.

Atomic assets

Atomic assets

An updated look at nuclear decommissioning trust funds.

Special Report

DC Money Managers: Assets up 21% in 2013

Bolstered by a soaring stock market, defined contribution assets under management climbed to $5.19 trillion last year, a 21.1% increase over the previous record of $4.28 trillion in 2012.

Online

Frontlines

Editorial

Adding reality to valuations

Adding reality to valuations

The Securities and Exchange Commission made the right decision in exempting defined contribution plans — but not defined benefit plans, foundations, endowments and other asset owners — from its new rule requiring the share values of institutional prime money market funds to fluctuate based on market price changes.

Other Views

Keeping the PBGC from being the next bailout recipient

A series of recently issued reports have addressed various governance and financial challenges facing the Pension Benefit Guaranty Corp. The takeaway from all of them is that unless changes are made in the way the federal pension insurance system is governed and financed, there is a heightened risk that taxpayers will be called upon to bail out the system within the next decade.

Changing priorities could weaken retirement system

It's no secret the U.S. retirement system needs to evolve, but this year we are seeing an unprecedented perfect storm.

People Moves