Downtown Montreal partially reopened today following ice storms that devastated the area last week and left much of it still without power.
Pension fund sponsors reopening today included Caisse de depot et placement du Quebec - which had been allowed to have only traders come to work Monday through Wednesday - and Alcan Aluminum Ltd., which had been closed for three days. Bombardier Inc. will be closed until at least Friday. Among other pension-related businesses closed for at least part of the week were BARRA International and Towers Perrin.
The downtown has been virtually void of business since Friday afternoon after power went out. It was closed to all but a few restricted personnel for a few businesses, such as the Montreal Stock Exchange, until today. The area will be open partially tomorrow from 9 a.m. to 4 p.m.
Archdiocese of Los Angeles will boost its equity allocations as a result of a major asset allocation study for its combined $500 million pension and endowment funds, said Jose Debasa, CFO.
The plan will raise U.S. equity to 48% of total assets from 40% and international equities to 17% from 15%, including a boost in emerging markets to 2% from 1.1%. It will keep U.S. long-term bonds at 31%, while reducing short-duration bonds to 4% from 16%.
The archdiocese plans to make the shifts over six months using existing managers and retaining all of them. Asset Strategy Consulting is assisting.
A federal appeals court upheld a lower court's decision that a multiemployer pension and annuity plan cannot qualify as a tax-exempt labor organization if it fails to meet the requirements of ERISA and tax law.
The First Circuit Court of Appeals ruled Congress intended Section 401(a) of the Internal Revenue Code to be the final word in determining whether employer-provided pension plans qualify for tax-favored status.
The case involves a dispute between the IRS and the pension fund for the Plumbing, Pipe Fitting and Heating Contractors Association of Brockton and Vicinity, as well as Local 276 of the United Association of Journeymen and Apprentices of the Plumbing and the Pipe Fitting Industry of the U.S. and Canada.
The IRS found plan documents failed to meet the requirements of Section 401(a). The fund paid $450,000 in back taxes then sued for a refund.
Affiliated Managers Group acquired 68% of Essex Investment Management for $69.6 million in cash and about 1.75 million shares of newly issued AMG non-voting convertible stock. Essex managers acquired the remaining 32% of the firm.
Essex has about $4.3 billion in total assets under management. The firm specializes in growth equities and fixed income using a fundamental, research-driven approach.