Washington, DC – IPFI advisory board members have submitted comment letters concerning a proposed regulation on environmental, social, and governance (ESG) investments by the Department of Labor. The letters express support for the revision to the Employee Retirement Income Security Act (ERISA) which would require ERISA-qualified asset managers to base investment decisions solely on financial considerations rather […]
CalPERS rethinks investment strategy in the wake of the economic downturn
The Chief Investment Officer of the California Public Employee’s Retirement System, Ben Meng, is repositioning the fund’s investments in the wake of recent underperformance caused by COVID-19. To meet its future obligations, Calpers must generate a 7% annual return. Yet an in-house study in 2019 found that its chances of meeting that target over 10 […]
California Supreme Court Examines Pension Spiking
In May, the California Supreme Court heard a case with the potential to set a new precedent for pension reform across the country. The court’s decision will impact the pensions of over one million public employees and will either confirm or limit the government’s ability to adjust pension benefits after they are promised to public […]
Supreme Court weighs in on fiduciary duty in pension fund management
On June 1st, the Supreme Court Ruled in the case Thole vs US Bank N.A., with important implications for pensions that could help shape future retirement investment. The plaintiffs were James Thole and Sherry Smith, both retirees that were invested in US Banks’ defined benefit retirement plan. They alleged that US Bank violated the Employee […]
BlackRock under increased scrutiny as it continues to push its ESG goals
Larry Fink knows better than you. At least, that is the message the world’s largest asset manager is sending following the January letter announcing BlackRock’s shift towards ESG activism. Fink threatened to use the firm’s massive influence to undermine boards that do not adhere to BlackRock’s agenda, saying, “we will be increasingly disposed to vote […]
Equal accountability needed for all companies listed on U.S. exchanges
With the American economy taking its first steps toward re-opening after months of lockdown, businesses and public officials alike must now confront staggering losses across the market and evaluate how to best focus their recovery efforts. Public pensions, already struggling with staggering unfunded liabilities in many states, have been hit especially hard by this crisis. […]
IPFI Issue Brief: Behind BlackRock’s ESG Shift
BlackRock, the world’s largest private asset manager, has over the past two years begun to shift its investment strategy, placing a much greater emphasis on environmental, social, and governance (ESG) factors and boosting the presence of ESG funds in its portfolios. In a newly released issue brief, the Institute for Pension Fund Integrity delves into […]
Alternative Investments: An Overview
In 2006, alternative assets made up just 11% of state pension investments. By 2016, that number had shot up to 26% of pension fund allocations. These investments almost entirely came out of what had previously been allocated to traditional equity investments, with fixed income sources’ share of pension fund investments remaining largely unaltered. But what […]
Robo-Voting: An Overview
Robo-voting: An Overview With the focus of government, business, and the media all centered on the singular issue of coronavirus, attention toward the upcoming proxy shareholder voting season has been moved to the back burner. Over the next few months, shareholders of publicly traded companies will be voting on various resolutions, including who sits on […]
Fallout from COVID-19 Demonstrated Rose-Colored Perspective on Pension Returns
As of the writing of this article, global markets have experienced the largest drop since the Great Depression as a result of fallout from the COVID-19 virus, erasing all gains from the economic upswing of the last two years. It is likely that with a global quarantine in effect, markets will continue to reel in […]