Table of Contents

Issue Date: Monday, February 6, 2017

News

Opportunities still exist, private equity investors and managers say

Opportunities still exist, private equity investors and managers say

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

Active managers facing new hurdle

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 research cost disclosure.

Stress testing a new normal for investors

Stress testing a new normal for investors

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 in markets.

Hedge fund investors apply core-satellite

Hedge fund investors apply core-satellite

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 of alpha-generating hedge funds.

Large endowments struggled with returns in fiscal 2016

Large endowments struggled with returns in fiscal 2016

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

Harvard decides to go different way on investing

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

ESG in Asia trips on Korean scandal

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 Samsung group restructuring.

NZ Super nets strong active returns in 2016; pickings look slimmer this year

NZ Super nets strong active returns in 2016; pickings look slimmer this year

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

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

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 Institute began offering candidates looking to get a head start on the program -- or make up for earlier shortcomings -- in 2003 after four decades of holding the exam once a year.

Charles Ellis consulting for CalPERS

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

Active managers feel pain as asset drain continues

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

Waning returns have some doubting private equity's value

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

Prospects on high yield muted after satisfying year

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. interest rates.

Target-date mixing might not be taboo after all

Target-date mixing might not be taboo after all

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

Target-date funds continue their winning ways

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

Employer groups happy with high court nominee

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 the late Justice Antonin Scalia.

Pockets of promise popping up in a tough market

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.

Trump: Review Dodd-Frank, delay or replace fiduciary rule

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 Protection Act, and a separate executive memorandum directing the secretary of labor to consider delaying or replacing the fiduciary rule that is scheduled to go into effect in April.

Special Report

P&I 1,000 largest retirement plans: 2017

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

Harvard offers a lesson

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.

Limitations on director nomination procedure are wrong

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 nominate directors.

Other Views

Don't lower caps on employee retirement savings

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

People Moves