Table of Contents

Issue Date: Monday, March 20, 2017

News

Snap IPO igniting furor; institutions not pleased

Snap IPO igniting furor; institutions not pleased

The absence of shareholder voting rights in Snap Inc.'s recent IPO has large institutional investors and asset managers gearing up for a battle they hope will prevent a war from erupting among future corporate issuers.

Japan Post Bank starts turn to alts

Japan Post Bank starts turn to alts

Japan Post Bank will continue to shift trillions of yen from Japanese government bonds to offshore credit, but the Tokyo-based giant's next round of mandates might yield lower fees for money managers.

Passive investment train overtakes active in corporate DC plans

Passive investment train overtakes active in corporate DC plans

Passive investments pull ahead of active management for the first time since P&I began tracking data from the 100 biggest corporate defined contribution plans.

T. Rowe Price in midst of major growth plan

T. Rowe Price in midst of major growth plan

T. Rowe Price is building its defined contribution investment-only business and multiasset class capabilities in the U.S, while also looking to grow headcount in sales and client service.

Latest hacking news heightens cybersecurity concerns

Latest hacking news heightens cybersecurity concerns

Recent hacking attempts have third-party fund administrators on alert to secure the huge volume of investment and other data they hold for alternatives managers.

Holy Cross Hospital agrees to $9.1 million settlement in church-plan challenge

Holy Cross Hospital agrees to $9.1 million settlement in church-plan challenge

Holy Cross Hospital has agreed to pay $4 million to participants of a defined benefit plan being terminated to settle a lawsuit challenging its church-plan status and to distribute $5.1 million in remaining plan assets owed to nearly 2,000 participants.

PBGC girds for pending union plan catastrophe

PBGC girds for pending union plan catastrophe

Pension Benefit Guaranty Corp.'s dire financial condition has officials predicting painful cuts for more than 1 million multiemployer plan participants projected to need its help.

Looking for talent beyond the good ol' boys

Looking for talent beyond the good ol' boys

Diversity on company boards, trustee boards and within the money management industry has become a focus for institutional investors, and money managers themselves, as the improved decision-making and returns it encourages become increasingly evident.

General partners putting money where investments are

General partners putting money where investments are

Private equity firms are putting more money into their funds. The average GP commitment to vintage alternative investment funds in 2016 was 7.84%, up from 6.96% in 2015.

Mercer not only consultant changing with the times

Mercer Investments is only one of several investment consulting firms restructuring its business or consolidating as the investment landscape evolves.

Japan Post Insurance ramps up credit allocations, finalizes plans for alts

Japan Post Insurance Co. Ltd. is a step behind its sister company a $700 billion investment portfolio still largely anchored on Japanese government bonds, but it's moving to catch up.

Mercer combines units to   meet clients' shifting need

Mercer combines units to meet clients' shifting need

Mercer Investments is reorganizing, as its clients become more focused on keeping plan participants out of poverty in retirement.

Market participants call small-cap tick pilot disappointing

Market participants call small-cap tick pilot disappointing

So far, not so good. Early reviews of the Securities and Exchange Commission's small-cap equity tick-size pilot program have been generally negative in regard to its impact on trading costs and investment returns.

Investors told to challenge, adjust investment assumptions to meet needed outcomes

Investors told to challenge, adjust investment assumptions to meet needed outcomes

Institutional investors need to alter their thinking when it comes to investment management in the lower-for-longer interest rate and returns environment.

Digital producer joins team at P&I

Digital producer joins team at P&I

Aftenthyn L. Person joined Pensions & Investments as digital producer.

Frontlines

Editorial

ERISA: DOL can't have it both ways

ERISA: DOL can't have it both ways

The Department of Labor's secure choice rule undermines ERISA protections for participants in those plans, which are aimed at the approximately 55 million private-sector employees without access to a retirement saving account.

CEO needs some help with his homework

CEO needs some help with his homework

Chicago Public Schools CEO Forrest Claypool needs to do his homework and start reviewing the district's financial reports, so he can answer simple questions from taxpayers.

Other Views

Machine learning will transform investment management

Machine learning will transform investment management

Human involvement will still be critical for risk management and framework selection, but increasingly strategy innovation in money management will be automated.

Some simple principles every plan fiduciary should follow

Some simple principles every plan fiduciary should follow

Recently, plan sponsors have come under increased legal scrutiny as the threat of litigation has become more prevalent across the industry.

Letters to the Editor