Legislation allows Michigan's treasurer to invest 50% of the state's pension assets in equities.
Savings and loans are deregulated.
Dimensional Fund Advisors unveils the first small-capitalization index fund, which invests in the bottom two deciles of New York Stock Exchange.
SEI Corp., which sells automated trust systems to banks, launches its first investment fund.
The Chicago Board of Trade proposes a Dow Jones industrial average futures contract. It takes 15 years for Dow Jones to allow the CBOT to begin trading the contract.
PRISA I, Prudential's $4.2 billion open-end commingled real estate fund, for the first time is unable to honor withdrawal requests.
The pension fund of Standard Oil of Indiana, under the leadership of Phil Binzel and David Tierney, creates a "completeness fund" to distinguish between manager skill and market trends.
In the aftermath of Drysdale Government Securities defaults, pension funds are wary of securities lending.
Defined benefit plans may have peaked. Government policies are causing a swing to defined contribution plans, even though the IRS has not issued final rules on 401(k)s yet.
The deadline passes for the Equal Rights Amendment, which falls three states short of ratification.
The Braniff Airways bankruptcy endangers its pension fund. Braniff terminates the plans, causing the PBGC to assume unfunded liabilities.
Princess Grace of Monaco dies of injuries suffered in an auto accident.
Drexel Burnham Lambert is recognized as the leader in raising capital for companies with low debt ratings.
The black granite Vietnam War Memorial is dedicated in Washington.
Michael Jackson's "Thriller" joins the Billboard Top 10. It goes on to become the best-selling album of all time in the U.S.
The recession hits its peak, with unemployment reaching 10.8%, its highest level since 1940.
Alaska Permanent Fund considers investing in equities. Three months later, it hires Bankers Trust for an index fund and, later in the year, picks other managers.
The final episode of "M*A*S*H" displaces the "Who Shot J.R.?" episode of "Dallas" as TV's most-watched segment ever.
The CD player is introduced.
The Alaska state pension fund sells its ton of gold for $412.25 per ounce, or $16.6 million. The fund lost almost $9 million on the investment.
The DOL and SEC study performance-based fees for money managers. The SEC approves them the following month, but the DOL holds off until 1985.
The Labor Department files suit against Texas businessman Harold Simmons, charging he illegally used companies' pension funds to gain control of other companies.
Financier Victor Posner seeks to acquire Graniteville Co. Then URSA Corp. unsuccessfully proposes to use Graniteville's overfunded excess pension assets to take over Graniteville and stave off Mr. Posner. Mr. Posner later terminates the pension plan, recapturing $35 million in surplus assets.
Sally Ride becomes the first woman in space on the shuttle Challenger.
William Fouse, Thomas Loeb and Polly Shouse leave Wells Fargo Investment Advisors to open Mellon Capital Management to manage index funds.
Some 104 companies have terminated pension plans, recapturing $443 million in excess pension assets, PBGC data show.
Bruce I. Jacobs, director-asset management at Prudential Insurance, says portfolio insurance will reduce long-term returns.
Massive problems are predicted if corporations are required to put on their balance sheets post-retirement health benefits. Nine years later, FAS 106 goes into effect, requiring the benefits to be listed as part of corporate financial statements.
241 Americans are killed in the bombing of the U.S. Marine headquarters in Beirut, Lebanon.
Chemical Bank sets up a new investment unit, Favia Hill & Associates.
The average corporate pension executive salary is $68,651. The average public pension executive is paid $48,081.
Air Canada sets up minicomputers to manage its $1.5 billion pension fund in-house with a staff of 10.
T. Rowe Price, investment pioneer, dies at age 85.
The junk bond market starts.
Lawrence G. Tint urges investment professionals to buy microcomputers, which he says are revolutionizing the way investment decisions are carried out.
Stores are running out of Cabbage Patch dolls.
The $4.7 billion Teamsters Central States pension fund hires Morgan Stanley as named fiduciary.
The SEC plans an electronic filing system, which eventually becomes EDGAR.
William M. Mercer and Meidinger merge.
Robert A.G. Monks is named DOL pension administrator.
The SEC rescinds the ban on debt defeasance by corporations.
Ivan Boesky markets an arbitrage strategy to pension funds.
Barry Effron and Paul Berg form Plan Sponsor Network to offer computerized screening of money managers.
French and U.S. researchers announce they have identified the viruses that cause AIDS.
Sears, Roebuck to list its stock on the Tokyo Stock Exchange.
The federal government rescues Continental Illinois Corp., the eighth largest banking holding company.
Alan Greenspan and C. Roderick O'Neil, former chief investment officer of Travelers Corp., form Greenspan O'Neil, an investment advisory firm offering equity and fixed-income management. Three years later, Mr. Greenspan becomes chairman of the Federal Reserve.
Michael Jordan is drafted by the Chicago Bulls.
Democratic presidential nominee Walter Mondale picks as his running mate Geraldine Ferraro, the first woman nominated by a major party for vice president.
401(k)s grow, with 40% of Fortune 500 companies starting them.
Jesse Unruh, California state treasurer, holds a meeting seeking to organize pension funds into an activist shareholder group, which will become the Council of Institutional Investors.
Pension asset reversions total $1.5 billion in the first three quarters of 1984.
Indian Prime Minister Indira Gandhi is killed by Sikh gunmen.
Ameritech sets up a $2.4 billion dedicated bond portfolio, the largest of any pension fund, for its $6.4 billion pension fund.
CalSTRS, marking its split from CalPERs, hires its first outside managers and dismisses newly hired CEO C. Michael McLaren.
A poison gas leak at a Union Carbide plant in Bhopal, India, kills approximately 3,800 people and disables many others.
GM announces it will manufacture a new line of subcompact cars under the name Saturn.
The Council of Institutional Investors, formed by 22 pension funds, schedules its first big takeover meeting with Phillips Petroleum Co. and T. Boone Pickens on a recapitalization plan.
Barr Rosenberg starts the money management firm Rosenberg Institutional Equity Management.
Ohio closes 71 savings and loans to halt runs by depositors.
Thomas Flanigan, deputy CIO at the New York State Common Fund, is named CIO of CalSTRS.
The state attorney general rules the Florida State Board of Administration can't divest its South Africa-related stocks on ethical criterion alone; it must judge stocks on return, risk and diversification.
New Coke is introduced but is a miserable failure.
The PBGC allows participating annuities for the first time, when Firestone Tire & Rubber Co. buys them after terminating its pension plans.
The Reagan administration backs away from the Treasury Department's tax reform proposal to eliminate 401(k) plans. Instead, it endorses a plan to reduce the appeal of 401(k)s.
A court ruling gives a boost to Taft-Hartley funds seeking to create union jobs through real estate investments. The court rules for Dennis Walton, business manager and fund trustee for Local 675 Operating Engineers pension fund in south Florida.
GOT UNITED PLANES
United Airlines terminates its pension plan and recaptures $962 million in surplus assets.
Pension asset reversions so far this year total $8 billion.
R.J. Reynolds buys Nabisco for $4.9 billion.
NBC broadcasts a documentary on pension funds, "The Biggest Lump of Money in the World."
Bank of America is the first major corporation to adopt cash balance plan.
Union Carbide Corp. adopts a "pension parachute" to stop unwanted suitors from using its $762 million pension surplus to take over the company.
Employers lobby to save 401(k) plans from being killed by the Reagan administration.
AT&T and GM -- in a first for pension funds -- take direct interests in large portfolios of existing shopping centers.
E.F. Hutton revamps its cash management system following a scandal over engaging in overdrafts.
Cincinnati Reds' Pete Rose's 4,192nd hit breaks Ty Cobb's record for career hits. In 1989, he is banned from baseball for betting on games, including those in which his team played.
Equity program trading grows. Chrysler pension fund uses it to trade $450 million worth. Salomon devotes more resources to program trading.
Franco Modigliani, MIT professor, wins the Nobel Memorial Prize for economics.
Salomon Brothers unveils its Broad Investment Grade bond index.
The GE pension fund cuts its real estate allocation by 20% in response to the uncertain market.
The DOL says it will approve performance fees on a case-by-case basis.
Texaco loses a $10.1 billion judgment to Pennzoil Co. for taking over Getty Oil.
The American Medical Association house of delegates votes to recommend a total ban on tobacco advertising.
The Dow goes to 1511.7, topping 1500 for the first time on Dec. 11.
RCA and GE merge.
A P&I survey shows assets of the 1,000 largest pension funds hit $1 trillion for the first time.
GOT PIC OF explosion
The space shuttle Challenger explodes shortly after launch, killing all seven astronauts aboard, including the first teacher in space, Christa McAuliffe.
Britain and France approve the channel tunnel project. The "Chunnel" opens in November 1994.
CBS Inc.'s $500 million pension fund liquidates its entire $300 million stock portfolio to comply with the market-timing strategy of board member Laurence A. Tisch, whose company, Loews Corp., owns 12.3% of CBS.
Public pension funds pressure money managers to hire minority employees.
Pension reversions total $12.5 billion from Jan. 1 to March 31.
An explosion at a reactor in the Chernobyl nuclear plant in Soviet Ukraine is the worst nuclear disaster ever. Thirty-two plant workers and firefighters are killed immediately. Thousands more die of longer-term effects.
AT&T nets $200 million in adopting FAS 87, which requires companies to disclose unfunded pension liabilities on their balance sheets. Overfunded plans, like AT&T, however, find they can record earnings gains.
Two pension funds receive $17,500 in discount food coupons in settlement of a suit over Denny's leveraged buyout.
General Motors and Texas Instruments adopt dynamic hedging, also known as portfolio insurance, using techniques by Leland O'Brien Rubinstein.
Some pension executives are concerned portfolio insurance might accentuate swings in the stock market.
Deere & Co. adopts portfolio insurance.
Falling interest rates wipe out $200 billion to $300 billion in pension plan surpluses.
Goldman Sachs, Crocker and others close their open-end real estate funds because of a difficult market.
LTV files for bankruptcy.
United Asset Management goes public at $18 a share.
Companies may face $100 billion in unfunded retiree health care liabilities as FASB opens discussion on the proposal for more disclosure of such benefits.
The California Legislature requires CalPERS and CalSTRS to divest South African-related assets beginning in January 1988.
Arbitrage programs using index funds are blamed for major moves in the stock market.
Managers using portfolio insurance face futures pricing and liquidity problems during the Sept. 11 market plunge of 86.61 -- its biggest one-day point drop ever.
Sherwin Williams Co. gets DOL approval to borrow $65 million from its $314 million pension fund to finance acquisitions or forestall potential takeover.
Los Angeles County is allowed to issue pension bonds to reduce pension liabilities; others follow.
The Department of Defense mounts an effort to get a share of the asset reversions from pension plans terminated by defense contractors. It gets part of FMC Corp.'s $400 million to $500 million pension reversion.
Democrats recapture control of the Senate and, led by Howard Metzenbaum, D-Ohio, plan to rein in the ability of corporations to recapture pension surpluses.
CalSTRS and Los Angeles County make their first international investments.
Ivan Boesky, charged with insider trading, agrees to pay a record $100 million settlement to SEC. He pleads guilty to related criminal charges in April 1987.
CalPERS introduces resolutions to 43 companies opposing their poison pills.
Instinet Corp. develops the first electronic cross-trading system.
The Council of Institutional Investors protests General Motors' $742.5 million buyout of H. Ross Perot.
Chief executives at Rockwell International and GTE lobby their Fortune 500 counterparts, asking them to get their pension funds to support antitakeover measures.
The SEC turns down a Colorado inmate serving a life sentence for murder who applies to run money for others. He advises on $400,000, employs a secretary outside prison and outperformed the S&P 500 in 1986.
McKesson Corp., backed by the SEC, leads a move to replace annual reports with summary reports as a means of disclosing financial statements.
Bernhard H. Goetz is acquitted of criminal charges in the shooting of four black teen-agers on the Manhattan subway.
After 20 years of syndication, Captain James T. Kirk of the U.S.S. Enterprise is replaced by a new captain and galaxy-class ship in "Star Trek: The Next Generation."
The savings & loan bailout begins.
JMB Realty Corp. is forced to raise $460 million more than planned for its acquisition of Cadillac Fairview. The $1.96 billion deal is considered the largest real estate transaction ever.
Owens-Illinois and General Electric make what is believed to be the first U.S. pension fund investments in the Brazilian stock market.
Jesse Unruh, the California state treasurer who helped found the Council of Institutional Investors, dies.
BARRA study shows S&P 500 stocks have outperformed their non-S&P 500 counterparts by 3.25% a year since 1980.
Pension funds liquidate a record $16.76 billion of stock and move $8.9 billion to cash in the first quarter because of increasing unease with the stock market's high level.
The DOL proposes a 404(c) safe-harbor provision allowing fiduciaries to avoid liability if their 401(k) offers a broad range of investment options; final regulations come in 1992.
The stock market drops 23% Oct. 19, costing pension funds $200 billion and leading to a debate on portfolio insurance.
"Wall Street," Oliver Stone's film take on '80s greed, premieres.
The United Mine Workers creates the first nationwide multiemployer 401(k).
Pension funds register strong opposition to a Brady Commission suggestion to restrict trading for portfolio insurance or derivatives following the market crash.
In a letter to Avon, the DOL makes its first formal statement on proxy voting: The ultimate economic value of stock must be the primary consideration when fiduciaries vote proxies.
The Assemblies of God church defrocks televangelist Rev. Jimmy Swaggart after admitted moral failing.
Carl Icahn and KKR battle as each tries to take over Texaco Inc. In April, Texaco agreed to pay Pennzoil $3 billion to end the dispute over Texaco's takeover of Getty Oil.
Salomon, Morgan Stanley, PaineWebber, Kidder Peabody and Bear Stearns stop stock index arbitrage trading for their own accounts.
Defeasance, a technique in which dedicated portfolios are used to pay down corporate debt, becomes hot in corporate America.
USF&G buys Citicorp Investment Management for $102.5 million. Citicorp has $17.5 billion under management.
Surgeon General C. Everett Koop declares cigarettes and other tobacco products to be addictive. A month later, the Liggett Group Inc. is found partly liable for the death of Rose Cipollone, who smoked for 40 years. The jury awards her family $400,000 compensation.
Mikhail Gorbachev's perestroika (restructuring) wins support of the All-Union Conference of the Soviet Communist Party. Ten months later he is elected Soviet president.
Goldman Sachs Asset Management is formed to offer separate account management.
Tactical asset allocation use soars to $38 billion, up 47% from last year.
The Federal Home Loan Bank Board and Robert M. Bass Group rescue American Savings & Loan Association in Stockton, Calif. It's the fourth bailout in three weeks.
Goodyear and Shell seek to pay all of their money managers with performance-based fees.
The Treasury Department announces a six-month freeze on pension plan terminations.
For three weeks, two California gray whales trapped in the ice off Point Barrow, Alaska, capture the attention of the world. They finally are freed by a Soviet ice breaker.
Claude M. Ballard, a pioneer who helped define today's real estate business, retires from Goldman Sachs.
Pension funds share in $5.1 billion in proceeds from the bidding war for RJR Nabisco. KKR wins control of the company.
Drexel Burnham Lambert pleads guilty to six felony counts of securities and mail fraud and agrees to pay a $300 million fine and $350 million in restitution.
George Bush is sworn in as the 41st U.S. president.
Ameritech sets up a retiree health fund and contributes $50 million in anticipation of the Financial Accounting Standards Board rule that will require accounting for such liabilities.
Henry G. Cisneros, who has announced he won't seek re-election as San Antonio mayor, plans to team up with Criterion Investment Management to set up a minority money manager specializing in fixed income. The firm closes in 1995.
President Bush proposes closing 350 S&Ls at a projected cost of $50 billion, to be covered by government insurance.
Iran's Ayatollah Khomeini calls for the death of Salman Rushdie because of the author's take on Islam in his new novel "Satanic Verses." Iran lifts the death sentence in fall 1998.
GOT TIME LOGO Time Inc. and Warner Communications Inc. merge. Institutional investors applaud.
Sen. Howard Metzenbaum, D-Ohio introduces a bill that virtually would bar sponsors from recapturing surplus pension assets. Congress approves it a year later.
Leveraged ESOPs become popular to deter takeovers and realize tax advantages.
Brunswick Corp. and Unisys Corp. file with the SEC to sell public debt to finance ESOPs.
Top CFO salaries reach $1 million.
Pension funds seek to invest in troubled S&Ls.
Protests by Chinese students and dissidents culminate in a massacre near Tiananmen Square.
The House rejects a proposal barring banks from issuing bank investment contracts, a defeat for the insurance industry.
Chaos Theory emerges as the newest explanation for market movements.
Rep. Peter J. Visclosky, D-Ind., unsuccessfully introduces a bill requiring corporations to give labor and management equal say in investments and administration of all pension plans.
Iran's Ayatollah Khomeini dies at age 86.
Brignoli Curley & Roberts Associates folds after a U.S. judge rules against Richard Brignoli on misappropriating funds and other charges.
Three activist public pension funds endorse the Valdez Principles for corporate environmental conduct four months after the Exxon Valdez wreck and oil spill in Alaska.
Gary Brinson buys First Chicago Investment Advisors, renames it Brinson Partners. It has $12 billion in total assets, mostly tax exempt.
Cartoon character Dilbert makes his first public appearance in the Sunday San Francisco Examiner as a winner of a pooch/owner lookalike contest. Two years later, creator Scott Adams finds a syndicator for the comic strip.
Institutional investors hope to capitalize on investment opportunity after Hungary tears down Iron Curtain.
CalPERS puts 85% of domestic equities into indexing.
Just moments before the start of the third game of the World Series, a 7.1 magnitude earthquake shakes the San Francisco/Oakland area.
The space shuttle Atlantis launches the Galileo space probe toward Jupiter.
Owners of Sears Tower, the world's tallest building, negotiate an $850 million mortgage with institutional investors.
The New Jersey Division of Investment wins the OK to invest up to 5% internationally.
The Communist dominoes fall. The Berlin Wall starts to crumble Nov. 9. The next day, demolition begins amid celebrations at the Brandenburg Gate.
Japan's Diet adopts a rule allowing investment advisers, foreign and Japanese, to manage some pension assets. The ruling comes four years after a decision to allow nine foreign banks to manage Japanese pension assets.
Romania's Communist president, Nicolae Ceausescu, is overthrown and executed.