WASHINGTON (Reuters) - U.S. securities regulators on Wednesday charged the former Detroit mayor and treasurer along with the city's public pension investment adviser with devising a secret exchange of "lavish gifts" to influence the pension fund's investments.
Pension plans rebounded sharply in 2009 and 2010 from the devastating losses in 2008. However they never got back to even. 2011 was another poor year, and in spite of the start to 2012 I expect this year and/or next year to suffer more losses, or alternatively the market to limp along with no gains for a number of years.
In a zero interest rate environment, we can think about market participants in two groups:
Those who are taking risk because they can.
Those who are taking risk because they have to.
These are not the traditional buckets. Normally the dividing lines run retail versus institutional… investor versus trader… value versus growth or what have you.
Abenomics, the controversial Japanese economic program, has led to an upsurge in popularity for their architect Shinzo Abe, Japan's prime minister. The program is a potent cocktail of both aggressive monetary policy and loose fiscal policy.
From zero to $1.5-billion of assets under management in less than nine years for an asset class that is not that prominent, is, by any measure, an impressive achievement.
But that’s the state of affairs at Integrated Private Debt Corp., a unit of publicly listed Integrated Asset Management Corp., which has just notched the first close on its fourth fund.
Rebounding public equities markets contributed “significantly” to a 10.1% return for the CPP Fund in the most recent fiscal year ending March 31.
Notwithstanding the boost from public equities, which represented 32.2% of the CPP Fund portfolio, executives of the CPP Investment Board (CPPIB) said Thursday that they remain committed to private market assets and expect them to outperform over the long-term.
DETROIT (Reuters) - Two former Detroit city officials were indicted on corruption charges on Wednesday, a week after ex-Mayor Kwame Kilpatrick was convicted for similar offenses and days before a state-appointed emergency manager takes over the city's finances. A grand jury accused former city pension officials Ronald Zajac and Paul Stewart of a bribery and kickback scheme that the U.S. Attorney's office said involved more than $200 million in Detroit pension fund investments. Stewart is a former trustee of the retirement system for the city's police and firefighters. ...
One of the mildly surprising things about the Stuyvesant Town debacle is the kinds of investors the deal attracted. What were entities like CalPers and the Church of England doing plowing their money in along with real estate moguls like Tishman Speyer?The answer is "looking for alpha". Underfunded pension funds have been looking for extra return in order to make up the holes . . . and the problem is worst among public pension funds, because until recently, their accounting wasn't very good, so politicians were fond of making unfunded promises in lieu of wages.