A major Republican backlash is underway in at least 24 U.S. states against public pension fund managers making investment decisions based upon environmental, social, and governance (ESG) concerns and principles. Those leading the backlash say that when the ESG filter is applied to investment decisions, it leads to portfolio losses, which harm pensioners. Non-ESG investments… Read More >>
Report Finds NY State Pension Fund ‘Severely Understaffed’
While the New York State Common Retirement Fund (CRF) is not in trouble, it is “severely understaffed” and needs to pay its staff more to avoid future problems, according to an independent advisor for public retirement systems that specializes in governance, operations and risk intelligence. Key pension fund officials agree that these issues need to… Read More >>
California Alleges Morgan Stanley Misled Key Pension Funds
The State of California has filed suit against Morgan Stanley & Co., accusing it of knowingly misleading the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), enticing the two huge pension funds to buy toxic mortgage-backed securities during the housing bubble that led to the Great Recession. The complaint,… Read More >>
State Street to Pay SEC $12M in Pay-to-Play Settlement
Boston-based State Street Bank and Trust Co. will pay $12 million to settle SEC charges that it “conducted a pay-to-play scheme through its then-senior vice president and a hired lobbyist to win contracts to service Ohio pension funds.” State Street, a venerable financial institution founded near the end of eighteenth century, describes itself as being… Read More >>
Calpers Defends Decision to Dump Hedge Funds
The California Public Employees’ Retirement System (Calpers) is staying the course despite recent criticisms about its decision in September 2014 to end its hedge fund program. Calpers manages the pensions of firefighters, police, teacher and other employees of the state of California, and has more than $300 billion in assets under management (AUM). Known for… Read More >>
Pension Fund Picks Markit’s EDM Platform
Markit, a provider of financial information services, reports that the state of Wisconsin’s investment board (SWIB) has selected Markit’s enterprise data management (EDM) platform as a “central hub for all of its investment data and reconciliations.” SWIB, created in 1951, is the ninth largest US public pension fund and the 28th largest public or private… Read More >>
Callan Associates Adopts RiskFirst’s PFaroe
Callan Associates, an investment consultancy firm, reports that it will use PFaroe, RiskFirst’s web-based pensions risk analytics platform, to “help institutional investors conduct asset allocation and asset/liability studies, as well as implement optimal investment strategies and de-risking solutions,” such as flight plans. In this context, a flight plan is simply a long-term business plan for… Read More >>
