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.
Highland Park, Michigan is on the brink of bankruptcy. There is no other realistic way out of the fiscal mess the city is in. As is typically the case, public union pensions are at the heart of the problem. Michigan Live reports Highland Park pensions in jeopardy if Fifth Third Bank halts loan payments.
Chicago's image as 'city that works' threatened by looming pension crisis CHICAGO (AP) — It's not the vision of a world-class city that Chicago Mayor Rahm Emanuel typically likes to portray. More teachers losing their jobs, thousands fewer police and firefighters on duty, less frequent trash collection and miles of potholed roads going unrepaired — all as property taxes soar.
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.
Our efforts to learn more about the private equity equity industry are revealing how determined public pension funds are to hiding as much as they can, even when they don’t have a legal leg to stand on.
Ontario Municipal Employees Retirement System, a pension fund manager in Canada’s most populous province, reported a 6.5% return on its investments last year, led by its private equity holdings.
Investment income was $4-billion compared with $5.2-billion in 2012, the Toronto-based fund manager said Monday in a statement. Omers, as the fund is known, managed $65.1-billion in assets as of Dec. 31, up from $60.8-billion a year earlier, according to the statement.
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. ...