Research
Pandemic Provides Lessons to Improve Retirement System
Research paper says pandemic ‘is likely to hasten the demise’ of defined benefit plans.
News Archive: Jun - 2020
Asset Management Culture
Mellody Hobson: Incentivizing Better Racial Relationships
Using investments to improve the world.
Market Moves
Don’t Get All Excited by the Green Light for PE in 401(k)s
Private equity isn’t always a market beater and charges high fees. Besides, it’ll be confined to larger investment pools, like target-date funds, which limits its impact.
Pensions
Study: There’s a Better Way to Withstand Downturns than Old DB Model
Under new set-up, a plan is over-funded, which serves as a cushion in a downturn. Any benefit cuts are only as a last resort.
Asset Allocation
USS Targets Tobacco, Thermal Coal for Divestment, Exclusion
UK’s largest pension plan will shun investments, like tobacco and coal, it deems ‘financially unsuitable.’
Market Moves
Schwarzman Dodges Bullet: Boosts Warehouses, Dumps Hotels, Malls
His Blackstone Group’s real estate arm manages to avoid bad trends and embrace good ones.
Alternatives
Racism Is an ESG Problem, Says Calvert CEO
The leader of the responsible investing group said investors must demand actionable outcomes from businesses.
Regulation
Ohio Court Rules Segal Blend Violates ERISA
Case has ‘significant ramifications’ for employers contesting their withdrawal liability from multiemployer plans.
Alternatives
Hawaii Makes $25M Venture Capital Investment for Local Growth
The state pension plan said local fund managers can expect to see an increase in commitments.
Regulation
US Indicts 33 in $2.5 Billion Scheme to Aid North Korean Nukes
North Korean, Chinese nationals charged with funneling money through US banks.
Regulation
Ares Management to Pay $1 Million to Settle SEC Charges
SEC says private equity firm failed to enforce potential misuse of material nonpublic information.
Pensions
CDPQ Reports Solid Year of Progress Despite Missing Return Target
Fund misses benchmark by 1.6%, but reports substantial progress in international markets, liquidity, and stewardship.
Asset Allocation
Low Funded Public Pensions Might Not Survive the Decade
Market downturn could be the final straw for struggling public pension plans.
Regulation
Rhode Island Attorney Jailed for Collecting Pension Benefits of Deceased Client
Attorney pleads guilty to taking $234K over 12 years.
Newsmakers
Supreme Court Rules Pensioners in Fully Funded Plans Can’t Serve ERISA Suits
Plaintiffs charging mismanagement of funds would have received the same fixed payment regardless of investment outcomes, the ruling said.