Table of Contents

Issue Date: Monday, February 6, 2017

News

Opportunities still exist, private equity investors and managers say

ALTERNATIVES

ALTERNATIVES

Private equity returns might be disappointing, but the asset class still provides a better opportunity than public stocks, observers say.
Active managers facing new hurdle

MONEY MANAGEMENT

MONEY MANAGEMENT

Active equity managers who've seen institutional clients move toward more passive investment in recent years have another potential roadblock to navigate in upcoming European regulations requiring...
Stress testing a new normal for investors

MONEY MANAGEMENT

MONEY MANAGEMENT

Consultants and pension fund executives across the globe are putting more emphasis and focus on stress and scenario testing of portfolios following a year of geopolitical surprises and all-time highs ...
Hedge fund investors apply core-satellite

ALTERNATIVES

ALTERNATIVES

Institutional investors are beginning to dramatically restructure their hedge fund portfolios, pairing a core allocation of cheaper alternative beta investment strategies with a satellite portfolio...
Large endowments struggled with returns in fiscal 2016

ASSET OWNERS

ASSET OWNERS

U.S. and Canadian endowments are struggling after producing the worst average annual return since the financial crisis low point resulting in an aggregate asset drop of 2.6%.
Harvard decides to go different way on investing

ASSET OWNERS

ASSET OWNERS

Harvard Management Co. is reversing its decades-old investment approach, an acknowledgement of the need to cut costs that also is expected to put the bulk of its $34.5 billion endowment in play.
ESG in Asia trips on Korean scandal

INVESTING/PORTFOLIO STRATEGIES

INVESTING/PORTFOLIO STRATEGIES

Proponents of better corporate governance in South Korea haven't lost hope that two steps forward may yet follow a big step backward involving a 2015 vote by the country's largest pension fund on a...
NZ Super nets strong active returns in 2016; pickings look slimmer this year

MONEY MANAGEMENT

MONEY MANAGEMENT

New Zealand Super's active investments accounted for more than 300 basis points of the fund's 13.2% gain for calendar year 2016, but future returns look to be more muted.
Larry Fink calls on CEOs, money managers to teach financial literacy
Laurence D. Fink, chairman and CEO of BlackRock, called on money managers and the CEOs of major companies to do their part in teaching financial literacy to employees.
December 2016 CFA Level I results
The CFA Institute released the results earlier this week of the Level I exam taken in December. Of the 59,627 candidates who took the exam at various locations around the globe, 43% passed. The CFA...
Charles Ellis consulting for CalPERS
Famed investment guru Charles Ellis has a new gig. Mr. Ellis, the founder of Greenwich Associates, has been working for CalPERS as a consultant.
Active managers feel pain as asset drain continues

MONEY MANAGEMENT

MONEY MANAGEMENT

The fourth quarter continued a positive storyline for BlackRock Inc., with $98 billion in net inflows, while many other money managers saw net outflows or tiny net inflows.
Waning returns have some doubting private equity's value

ALTERNATIVES

ALTERNATIVES

Private equity returns for many asset owners are failing to outperform their benchmarks over several time periods, and some observers are wondering whether investment in the asset class is worth it.
Prospects on high yield muted after satisfying year

INVESTING/PORTFOLIO STRATEGIES

INVESTING/PORTFOLIO STRATEGIES

Money management executives and consultants are starting to fall out of love with high-yield bonds following a tumultuous but rewarding 2016, as the outlook wanes for the asset class amid rising U.S. ...
Target-date mixing might not be taboo after all

INVESTING/PORTFOLIO STRATEGIES

INVESTING/PORTFOLIO STRATEGIES

Defined contribution plan participants who hold a target-date fund along with other investments in their accounts might not be misusing or misunderstanding this option.
Target-date funds continue their winning ways

DEFINED CONTRIBUTION

DEFINED CONTRIBUTION

Another year, another solid, steady advance for target-date funds as they occupy an increasing allocation among the country's 1,000 largest retirement plans.
Employer groups happy with high court nominee

COURTS

COURTS

Supreme Court nominee Neil Gorsuch's legal positions are reassuring employer groups that they will have a pro-business ally critical of regulators and investor lawsuits if he is confirmed to replace...

INVESTING/PORTFOLIO STRATEGIES

INVESTING/PORTFOLIO STRATEGIES

Despite the ever-increasing use of ETFs and the seemingly constant flow of new assets, the recent Inside ETFs conference featured a somber undertone. Here's why.

REGULATION/LEGISLATION

REGULATION/LEGISLATION

President Donald Trump continued his push to trim federal regulations, signing on Feb. 3 an executive order that federal regulators revisit the 2010 Dodd-Frank Wall Street Reform and Consumer...

Special Report

P&I 1,000 largest retirement plans: 2017
Total assets of the largest 1,000 U.S. retirement plans grew more than 6% by the end of the third quarter 2016, Pensions & Investments' annual survey found.

Frontlines

Editorial

Harvard offers a lesson

ASSET OWNERS

ASSET OWNERS

Other asset owners, especially pension funds, foundations and endowments, should observe the changes at Harvard Management Co. and especially the results, for possible lessons for their own funds.

GOVERNANCE

GOVERNANCE

Restricting proxy access is an unacceptable limitation that effectively disenfranchises all but the largest shareholders from potentially participating in access to corporate proxy materials to...

Other Views

Don't lower caps on employee retirement savings
For many Americans, saving in a tax-qualified defined contribution plan such as a 401(k) or 403(b) is the best opportunity to create a financial nest egg for use in retirement.

Letters to the Editor