A judge's call for 401(k)s
trueThe federal judge who oversaw the Detroit bankruptcy case, Steven W. Rhodes, has offered a blunt assessment of the future of public retirement systems, calling for officials to consider moving to defined contribution plans.
Wasting 401(k) plan assets
trueBig employers have come out in favor of higher-fee retail mutual funds in 401(k) plans. What are they thinking? That position is an unacceptable breach in the duty of fiduciaries.
Fee on leverage misguided
truePresident Barack Obama's proposed financial fee on leverage that would apply to large investment management firms as well as other large financial institutions won't enhance market stability as it supposedly is designed to do.
Cash needs to be put to work
truePension funds and other asset owners can limit the cash positions in their portfolios, but they cannot significantly influence other huge pools of cash sitting on the sidelines — cash idle on corporate balance sheets. This must change.
Damage of low rates
trueThe best thing that could be done for pension funds in 2015 is something they can't do themselves: increase interest rates.
Getting back on track
trueThe Financial Analysts Journal, what the CFA Institute calls its flagship publication and one of its principal means of outreach to advance development of the investment management profession, recently has appeared at risk of losing its way.
Congress did the right thing to protect multiemployer plans
trueCongress made the right decision to allow severely financially distressed multiemployer pension plans to cut retiree benefits.
Time to shore up the PBGC
trueWith the Pension Benefit Guaranty Corp. deficit growing to record levels and projections of continued deteriorating financial conditions, the question is: Can the PBGC be saved without increasing its premiums further, reducing the benefits it insures, resorting to a taxpayer bailout or some ...
The risks of multiline firms
trueThe Department of Labor made the right decision in granting Credit Suisse AG and its related entities a temporary exemption to continue to provide asset management services, at least for the short term, after its banking unit pleaded guilty to assisting U.S. citizens avoid taxes.
Risks of clouding priorities
trueAsset owners, institutional investment management firms and the markets are not immune from crises of confidence.
Suppression of dissent shouldn't be a core value
trueCalPERS' reprimand of a board member for publicly criticizing the hiring of Theodore Ted Eliopoulos as its chief investment officer is unacceptable.
A better place for pensions
trueThe decisions of Motorola Solutions Inc. and Bristol-Myers Squibb Co., the most recent big companies settling pension obligations by purchasing group annuity contracts, reinforce a trend by corporate sponsors to get such liabilities — especially those of employees now retired or inactive — off ...
Risk of star dependence
trueThe departure of William H. Gross from Pacific Investment Management Co. LLC leaves money management companies and institutional fiduciary clients alike wondering whether they should encourage the star system or a team approach to managing money.