Fiduciary X News

Financial Reform and Derivatives - Big Changes Coming

2010-07-25

The new financial reforms that have recently been signed into law mandate further transparency and changes in how derivatives are traded and settled. With over-the-counter financial instruments now a mainstay for most corporate and government treasury departments, pensions, endowments and foundations, a clear understanding of what the new law does and does not address is critical for anyone involved in derivatives reporting, valuation, hedging, capital-raising, credit risk assessment and risk management advisory. The impact of these sweeping changes could greatly affect the use of derivatives by institutional investors and their counterparty banks. The changing role of the fiduciary promises increased liability across the board. At the same time, questions about clearing, counterparty risk and collateral management become more important than ever. Join us for a July 29, 2010 educational webinar from 2:00 PM EST to 3:30 PM EST to learn more about service provider due diligence, collateral management, clearing derivatives, hedging costs and enhanced disclosure. Mr. John Hudson of Hudson Consulting Group LLC leads this important discussion with Mr. David Boberski (Head of OTC Research and New Product Development, CME Group), Attorney Matthew Kerfoot (Counsel, Dechert LLP) and Dr. Susan Mangiero, CFA, FRM (Founder, Investment Governance, Inc.).

Fiduciary Liability Insurance and New Challenges for Pensions, Endowments and Foundations

2010-07-15

Join Investment Governance, Inc. and esteemed experts for an educational webinar about fiduciary liability insurance and new challenges for pensions, endowments and foundations on July 28, 2010 from Noon to 1:15 PM EST. Mr. Gerry Czarnecki, governance exprt and member of the board of directors of State Farm Fire & Casualty will be joined by Attorney John Horak, founder of the Nonprofit Organizations Practice Group for Reid and Riege, P.C. and Ms. Rhonda Prussack, EVP and Product Manager of Fiduciary Liability for AIG Executive Liability. Click here to reserve your seat for this complimentary and topical educational event.

Transition Management: Taming the Beast

2010-07-15

The slides for the June 24, 2010 educational webinar entitled "Transition Management: Taming the Beast" are now posted. Click here to access the slides and the audio recording.

Retirement Plan Reporting Rules

2010-07-15

Slides from the June 29, 2010 educational webinar entitled "Fees, Form 5500 and Fiduciary Liability: The New F Words" have been posted. Click here to access the slides and the audio recording of this educational event.

Derivatives and Fiduciary Duty

2010-07-14

"A Trust Fiduciary's Duty to Implement Capital Preservation Strategies Using Financial Derivative Techniques" by Attorney Randall Borkus describes a fiduciary duty to hedge and pension risk management in the context of prevailing law. Click here to read the full article.

Attorney Tim Selby Speaks About Hedge Fund Due Diligence

2010-03-02

Join us on March 2, 2010 from Noon to 1 PM EST for a one hour discussion about fiduciary duties and hedge fund due diligence. Learn more about pending regulation, current lawsuits alleging fiduciary breach and elements of good due diligence before, during and after allocating monies to hedge funds.

Mr. Pascal Levensohn Speaks About Governance and Venture Capital Investing

2010-03-01

Benefit from a discussion with Mr. Pascal Levensohn on March 1, 2010 from Noon to 1:00 PM EST about due diligence actions to be taken by institutional investors, including key person risk, before they invest in venture capital funds.

Dr. Robert Maurer Speaks About Change Management and Learning From Failure

2010-02-25

Hear what Dr. Robert Maurer has to say on February 25, 2010 from 1:30 to 2:30 PM EST about implementing best practices change at a time of crisis and how organizations should reward reformers.

Outsourcing Risk Management Function

2010-06-21

In this June 21, 2010 webinar discussion entitled "Managing, Monitoring and Measuring Risk: Working With An Outsourced CRO" (Chief Risk Officer), Mr. Steve Van Besien, co-founder of Cenario Capital Management, and Dr. Petter Kolm, Director of the Mathematics in Finance M.S. program with the Courant Institute, New York University, addressed why fiduciaries should consider using independent risk experts. They also talked about different ways to measure risk. A case study about BP and the financial fallout since the oil spill was presented in the context of money manager due diligence. Investment Governance, Inc. thanks Cenario Capital for its sponsorship of this educational event.

The Cost of Aging: Longevity Risk is Real

2010-06-12

In this May 2010 interview about longevity, Dr. David Blake describes pension buy outs, pension buy ins and the longevity swap market. He explains why the traditional methods of assessing mortality and longevity are inaccurate and how lifespan trends must be evaluated by gender, age and socioeconomic status of participants.

Dr. Blake is Professor of Pension Economics at Cass Business School, City University London, and the Director of Pensions Institute.

Pension Risk Management and LDI

2010-05-21

Switching from a return-seeking focus to an integrated asset-liability management focus necessitates an understanding as to how the two approaches vary with respect to potential outcome and related risks. Just as important is to know that there are at least four (4) different ways to measure funding status and that each choice can have a material impact on plan economics.

For more information about pension risk management, liability driven investing (“LDI”) and benchmarking asset managers, listen to our May 21, 2010 webinar with Mr. Ryan McGlothin (head of P-Solve US) and Dr. Norman Ehrentreich (LDI consultant and author) about the nuts and bolts of setting up a Liability-Driven Investing (“LDI”) program for plan sponsors, economic versus actuarial funding metrics and considerations for assessing LDI overlay asset managers.

Click here to read Dr. Ehrentreich’s full bio.

Click here to read Mr. McGlothlin’s full bio.

Click here to listen to the May 21, 2010 webinar.

Beware of Greeks Bearing Debt?

2010-05-07

Sovereign debt owners are not unfamiliar with the concept of investment risk. Over the past several years, government-backed notes from Argentina, Russia and Dubai have all experienced some form of trouble. Recent turmoil in Greece, however, may speak to a more fundamental shift in the future of sovereign bond risk and worries about what economists refer to as contagion. According to a recent report published by the International Monetary Fund, “Financial sector linkages can transmit one country’s sovereign credit concerns to other economies.” How pension funds address the sovereign debt issue could materially impact their overall asset allocation and the cost of hedges that are tied to “risk-free” rates.

For more information about the Greek debt crisis and monetary policy in general, click here to listen to our interview with Dr. Lucjan Orlowski. Professor of Economics and International Finance at Sacred Heart University and central bank consultant, Dr. Orlowski explains how institutional investors are affected by economic conditions around the world. Click here to read Dr. Orlowski’s full bio.

Investors study climate change risks

2010-05-19

Institutional investors and consultancy Mercer are joining forces to study the impact of climate change on strategic asset allocation. The report, which will be published in the final quarter of 2010, aims to encourage financial intermediaries to develop relevant tools, products and services that address...

Fiduciary amendment attacked as loophole-ridden

2010-05-18

Calpers Demands $600 Million More From California Amid Deficit

2010-05-18

May 18 (Bloomberg) -- The California Public Employees’ Retirement System, the largest U.S. public pension, wants an extra $600.7 million from the state, which is confronting a $19 billion budget deficit.

Hedging helps NZ Super Fund in April

2010-05-18

Article - Businesswire NZ Super Fund grows $120 mln on hedging programme in April by Paul McBeth May 19 (BusinessWire) – The New Zealand Superannuation Fund, which was set up to help fund retiring baby boomers' state pensions, made a paper gain of $120 million, or 0.

Pension ruling applies to 1,423 Minneapolis retirees

2010-05-18

A judge has ordered two Minneapolis pension funds to recover about $76 million in overpayments to retired police and firefighters or their spouses. Under the order, the 860 retired police officers or their survivors must repay the city an average of $60,000 each, and 563 beneficiaries of the firefighter fund.

10 Ways the European Debt Crisis Affects Your Investments

2010-05-11

In a turn of events capable of giving even the most seasoned traders a bad case of whiplash, global markets snapped back to life on Monday following news that the European Union and the International Monetary Fund will set up a $1 trillion bailout fund.

Speech by SEC Staff: Massachusetts Society of CPAs Investment Company InfoShare Program Keynote Address

2010-05-11

by Andrew J. Donohue1 Director, Division of Investment Management U.S. Securities and Exchange Commission Boston, Massachusetts May 11, 2010 I. Introduction Thank you very much for the kind introduction and for inviting me to join you today.

Agecroft Predicts US Public Pension Funds to Increase Allocation to Hedge Funds at Greater Rate than Corporate Pension Plans

2010-05-04

Agecroft Partners predicts that United States public pension funds will increase their allocation to hedge funds at faster rate than corporate pension plans due to sweeping new corporate pension legislation that is just beginning to take hold in the industry.

Pension Benefit Guaranty Corporation: Federally-Chartered Retirement Body Flunks Independent Audit

2010-05-03

The Center for Public Integrity: Last November, the federal corporation charged with protecting Americans' retirement funds issued an ominous public warning: the amount of pensions at risk inside failing companies had more than tripled during the recession.

LIMRA Study Reveals: Women Worry More About Financial Security Than Men Do

2010-05-03

WINDSOR, Conn. April 29, 2010—More than half of the middle-income women surveyed felt unsatisfied with their current financial situation and uncertain about their future financial needs and almost a third of them don’t know how to achieve their financial goals, according to a new LIMRA report, Reaching Out...

Paterson urged to fire NYSTI board

2010-05-03

A new interim chief took over the New York State Theater Institute on Monday. At the same time, a state oversight agency has told Gov. David Paterson he should fire almost all board members at the embattled institute.

Checking up on 401(k) Offerings

2010-05-01

An analysis of an organization's retirement offerings should focus on the fees and offerings provided by the 401(k) plan service provider. Such a check-up should also include a review of the performance of the plan's mutual funds compared to other funds.

Foundations Offer $506M For Education Innovation

2010-04-28

Funds To Match Federal Grants Encouraging Education...

Govt reforms raise concerns

2010-04-26

Despite their support for the broad thrust of the government reforms, two industry bodies outline their concerns. The government's reform measures have received support from two industry bodies, however, the FPA and the Association of Financial Advisers (AFA have outlined some concerns.

Bailey & Glasser Awarded Class Action Against Wells Fargo in Management of Retirement Accounts

2010-04-26

CHARLESTON, W.Va., April 26 /PRNewswire/ -- Bailey & Glasser, a Charleston, West Virginia-based law firm, has obtained class certification in Figas v. Wells Fargo & Co.

Hearing set in NJ pension reform case

2010-04-26

TRENTON, N.J. - A judge has scheduled oral arguments in a lawsuit challenging pension and health benefits changes for the day before the reforms are slated to go into effect.

Nuveen Investments Provides Statement on Demand Letters Regarding ARPS

2010-04-26

CHICAGO--(BUSINESS WIRE)-- Nuveen Investments announced that on April 9, 2010, the 26 Nuveen leveraged closed-end funds listed below each received a demand letter from a law firm on behalf of each fund’s common shareholders, alleging that Nuveen Asset Management (the fund’s Adviser) and the fund’s officers...

Speech by SEC Commissioner: Remarks at the 22nd Annual Tulane Corporate Law Institute

2010-04-26

by Commissioner Troy A. Paredes U.S. Securities and Exchange Commission New Orleans, Louisiana April 15, 2010 Thank you for the generous welcome. It is a pleasure to be in New Orleans to join you this afternoon at the Twenty-Second Annual Tulane Corporate Law Institute.

Atkin Trustees launches Scheme Management Outsourcing Model

2010-04-22

Model removes need for in-house trustees and knowledge Independent trustee firm Atkin Trustees has launched what it calls a Scheme Management Outsourcing Model, designed to make governance simpler for smaller pension schemes.

Third firm fined over switch risk

2010-04-22

The FSA has fined London-based Robin Bradford Life and Pension Consultants £24,500 for exposing customers to unacceptable levels of risk. It is the third enforcement action resulting from the regulator’s pension switching probe.

State unique in study of pension funding

2010-04-22

INDIANAPOLIS – Indiana s is among the nation s five most underfunded teacher pension programs, with the assets to cover just over a third of the benefits it owes by state law, according to a report released this month by school-choice advocates.

Employment And Labour Concerns During Bankruptcy And Restructuring

2010-04-22

Across most developed economies, the common theme for employers weighing up bankruptcy proceedings is maximising value for the sake of their stakeholders.

Aviva to shut DB

2010-04-22

Aviva is looking to close its staff final-salary pension scheme to new contributions as well as closing the RAC final-salary scheme to new entrants, which face a combined deficit of £3bn.

Total Return Active ETF From Bill Gross? – Don Suskind, PIMCO’s Head of ETF Product Management

2010-04-21

ActiveETFs | InFocus spoke with – Don Suskind, Head of ETF Product Management at PIMCO. PIMCO currently manages more than $200million in assets within Active ETFs and it's the largest player in the United States Active ETF space.

New Stewardship Code: It s Not Just About Compliance But About Good Governance

2010-04-19

A proposed new stewardship code for institutional investors has the potential to enhance the quality of corporate governance and to provide additional safeguards for the capital markets and the security of many people’s savings for pensions and investments, says ACCA (the Association of Chartered Certified...

State Pension Fund To Examine Goldman Sachs

2010-04-19

SACRAMENTO, Calif. (AP) ? Click to enlarge1 of 1 CalPERS will examine Goldman's corporate-governance practices. CBS Close numSlides of totalImages The chief investment officer of California's giant pension fund says he is disturbed by the allegations of wrongdoing against investment firm Goldman Sachs.

Pensions Summit: Good governance vital to pensions success

2010-04-13

2010-04-13 16:51:33 Pensions Summit: Good governance vital to pensions...

Canada Post Pension Plan 2009 Financial Results

2010-04-13

Myners appeals for governance revamp

2010-04-13

By Hjalmar Tjan Published: 05 April, 2010 Myners: leadership is badly needed Driving down capital costs and widening funding sources should be a key corporate governance aim of UK pension schemes, says Lord Myners.

W.Va. teacher pensions most underfunded, report finds

2010-04-13

CHARLESTON, W.Va. -- West Virginia's Teachers Retirement System is the most underfunded teacher pension plan in the nation, according to a report released Tuesday by the Manhattan Institute for Policy Research.

Safeguarding Employee Stock Ownership Plans: Insurance as Assurance

2010-04-12

Law School: Hofstra University School of Law INTRODUCTION When Jimmy Allen began working for United Airlines in 1964, he was only twenty-two years old.

Part of Beazer 401(k) lawsuit tossed out

2010-04-12

A U.S. District Court in Atlanta dismissed part of a lawsuit against Beazer Homes USA filed by employees in its 401(k) plan who claimed the company breached its fiduciary duty by offering failing company stock as an investment option.

Pensions have stranglehold on budgets

2010-04-12

The 80 biggest municipalities across the state are in a $28 billion...

CalPERS Names Executive And Senior Positions - Appointments For Administrative Branch, Health Branch, Actuarial Services, And Governmental Affairs

2010-04-12

The California Public Employees’ Retirement System (CalPERS) has appointed Larry Jensen as Assistant Executive Officer of the pension fund’s Administrative Services Branch, Kim Malm as Interim Assistant Executive Officer for the Health Benefits Branch, Alan Milligan as CalPERS Interim Chief Actuary, and...

USS, Railpen launch new engagement website

2010-04-12

Railways Pension Trustee Company and Universities Superannuation Scheme two of the largest UK pension funds have agreed to pool governance expertise and resources to convene a voting and engagement alliance.

How longevity bonds may work

2010-04-07

(This complements a story on longevity risk and capital markets) April 7 (Reuters) - Pension insurers have been lobbying the British government to issue bonds linked to the longevity of the population, to help pension schemes and insurers manage the financial.

Judge rejects SD City Employees' Retirement System lawsuit

2010-04-07

A judge rejected a $177 million claim by the San Diego City Employees' Retirement System in a lawsuit related to pension underfunding, it was announced Wednesday.

CalPERS Responds to Stanford Policy Brief on Public Pension Funds

2010-04-07

SACRAMENTO, Calif.--(BUSINESS WIRE)--The California Public Employees' Retirement System (CalPERS) today responded to a Stanford study saying it uses outdated data and suggests the pension fund should violate its actuarial standards of practice and governmental accounting rules to create a zero risk...

European pension funds more proactive

2010-04-07

European pension funds position themselves for a more volatile economic environment. European pension funds are responding proactively to the likely reduction in fiscal and monetary stimuli and the subsequent impact on their investment strategy, according to Mercer’s annual European Asset Allocation Survey.

The Real Story behind Mutual Fund Fees

2010-04-06

Mutual funds form the bedrock of retirement savings in the United States and are sure to be more critical in the future. Because the size of fees paid to mutual fund advisers can affect investors' returns, these fees have become a contentious issue in Congress and the courts, with many arguing that...

Ontario Teachers' returns rebound in 2009

2010-04-06

Stanford study: state pensions underfunded by $500 billion

2010-04-06

SACRAMENTO — A Stanford University study commissioned by Gov. Arnold Schwarzenegger says California's public pension funds are underfunded by as much as $500 billion.

Credit Suisse's annual hedge fund survey finds investors intend to increase allocations by asset-weighted average of 9% this year

2010-04-06

Opalesque Industry Update - Credit Suisse is pleased to announce the results of its annual Hedge Fund Investor Survey, which gathered responses from institutional investors representing approximately USD $1 trillion in hedge fund investments on a broad range of topical issues such as asset flow forecasts,...

What pensions ‘cost’ and what they really cost

2010-04-06

PERS is dramatically understating its...

Chrysler pension plans underfunded by $3.4B, feds say

2010-04-06

Washington -- Chrysler Group LLC's pension plans are underfunded by $3.4 billion, according to a government report released today. Chrysler's pension plans have $19.

UK Pensions Regulator Announces Three-year Agenda

2010-04-05

March 30, 2010 (PLANSPONSOR.com) - Preparing for automatic enrolment, improving standards of governance and administration, and filling deficits as soon as reasonably affordable are among the top priorities set out in The Pensions Regulator’s Corporate plan 2010-2013.

PhillyDeals: Pa., N.J. pension funds running low

2010-03-25

New Jersey's state pension fund could run out of money by 2018, and Pennsylvania's by 2023, if the states don't boost their subsidies or cut benefits to future retirees, Joshua Rauh, a Northwestern University finance professor, says in a new report.

SEC Enforcer Probes ‘Egregious Conduct' as Muni Scrutiny Widens

2010-03-25

March 25 (Bloomberg) -- Elaine Greenberg, whose crackdown on regulatory abuses in the $2.8 trillion U.S. municipal bond market is the most ambitious since the 1990s, knows a public- debt scandal when she sees one.

Illinois House votes to cut worker pensions

2010-03-25

SPRINGFIELD, Ill. — A bipartisan Illinois General Assembly handed Gov. Pat Quinn a victory Wednesday, sending him an overhauled state pension system, cutting benefits for new city and state employees to save money for woefully underfunded retirement systems.

FASB and IASB Make More Progress on Fair Value

2010-03-24

The Financial Accounting Standards Board and the International Accounting Standards Board have been hashing out various issues surrounding fair value measurement, leases and other topics at a joint meeting this week.

Institutional Investor Business Network is Live

2010-01-25

New Discussion Forums Added on Hedge Funds, Asset Allocation, Risk Management and Fees

2010-01-22

Buy side executives share ideas about hedge funds investing, asset allocation, risk management process, excess fees and much more.

Investment Best Practices Matters - Complimentary Ezine Subscription

2010-02-22

Sign up for Investment Best Practices Matters. This exciting newsletter will provide time-saving, productivity-enhancing tips, announce upcoming events and showcase discussion forum topics designed by and for pension funds, endowments, foundations, mutual funds, sovereign wealth funds and other important types of institutional investors.

Virtual Reference Desk is Now Live

2010-01-25

If you have a quick question about any or all of 100+ topics related to investment governance and best practices, the FiduciaryX Virtual Reference Desk team of librarians and experts are ready to assist.

ERISA Litigation Study - April 15, 2009

2009-12-15

This review of pension lawsuit activity in the United States suggests that litigation is on the rise and unlikely to abate anytime soon. (Note that Investment Governance, Inc. is the new company name and replaces Pension Governance, Incorporated. The searchable database on which this paper was based is in the process of being improved to capture lawsuits involving public pensions, endowments, foundations and mutual funds.)

Pension Risk Management: Derivatives, Fiduciary Duty and Process

2008-10-13

Pension Governance, LLC (superceded by Investment Governance, Inc.) partners with the Society of Actuaries to conduct a large-scale study of governance and risk management practices by U.S. and Canadian pension plans.

PensionRiskMatters.com is Four Years Old

2010-03-10

Dr. Susan Mangiero Speaks About Governance

2010-02-02

Investment Governance, Inc. CEO, Dr. Susan Mangiero, joins an esteemed panel of colleagues to discuss the evolving nature of corporate fiduciary responsibility in Washington, D.C.

Investment Governance, Inc. Adds to Its Advisory Board and Announces the Creation of a FiduciaryX User Group

2010-01-07

Investment Governance, Inc. is pleased to announce the addition of two leading investment industry experts to its advisory board and the creation of a senior executive user group to further enhance its governance and risk management content and database offerings with the mid-January 2010 launch of www.FiduciaryX.com.

P&I Article About FiduciaryX Launch

2009-12-28

See "New website in works for institutional investors" (Pensions & Investments (December 28, 2009) for an article about FiduciaryX, a unique information portal and business network for investment professionals.

Northern Trust Becomes Founding Sponsor

2009-12-15

“FiduciaryX leverages the exciting medium of social networking, dedicating itself to bringing the knowledge of a community of like-minded individuals to our clients with terrific precision and appropriate context. This is a pioneering application in our industry,” said Peter Cherecwich, Chief Operating Officer of Corporate & Institutional Services at Northern Trust. “Supporting this independent resource is critical to our strategy of providing trust and transparency to our clients. The more informed everyone in our industry stays, the better decisions they can make and the better off the ultimate beneficiary or shareholder will be. In line with that commitment, Northern Trust will help provide subscriptions and sponsor educational events for our institutional clients to participate in the debut of www.FiduciaryX.com in early 2010.”

Article About Investment Ethics by Dr. Susan Mangiero

2009-12-01

Just Published - "Investment Ethics: How to Make Money and Win Clients" by Dr. Susan Mangiero

Investment Governance Announces Advisory Board

2009-11-12

Investment Governance, Inc. Announces Advisory Board to Help Shape Fiduciary Excellence Initiatives

Investment Governance Rebrands

2009-10-19

Investment Governance Rebrands and Adds New Directors