In seeking to minimise pension risk, many companies have chosen to freeze or close defined benefit pension plan in the hope such an approach might give them time to adjust and increase corporate value. In a recent article published in the Financial Analysts Journal, Brendan McFarland, Gaobo Pang and Mark Warshawsky examine the impact of freezing or closing a defined benefit plan on the sponsoring companies’ market value.
CalPERS seeks real estate consultants
CalPERS is seeking consulting firms for a dedicated real estate Spring-fed pool, the first competitive selection process since 2003, with five-year contracts to begin in
July next year.
The “CalPERS effect” on targeted company share prices
CalPERS’ approach to improving portfolio returns by engaging management of poorly performing companies to rethink governance and strategy has had a substantial endorsement, with analysis by Wilshire Associates demonstrating that the fund has had a dramatic effect on the performance of the companies placed on its Focus List.
Viewing the world differently: Alaska Permanent Fund’s new asset allocation
The $32 billion Alaska Permanent Fund has taken a unique approach to asset allocation, re-organising the fund according to how investments respond to economic conditions and their purpose in the portfolio. Chief executive, Mike Burns spoke to Amanda White about the new approach, which also includes a search for four ‘external CIO’ mandates. Alaska Permanent … Read more
BT Pension Scheme digs deep to plug deficit
The £31.3 billion ($51 billion) BT Pension Scheme will make additional deficit contributions of $862 million per year over the next three years after suffering an $13.6 billion loss on its investments in 2008. Kristen Paech reports on the scheme’s performance in 2008 and its new strategic asset allocation, which includes a 20 per cent weighting to alternatives.
Consultant warns of PPIP risks
The Pension Consulting Alliance is warning clients to exercise caution in investing in the Public-Private Investment Program, advising that other opportunistic fixed income investments offer a better risk/return profile.
