Just like many other parts of the economy, the stock market took a heavy hit due to the pandemic. At their lowest points of the crisis, both the Dow Jones and the FTSE 100 were down over 30%. Five months later, they each sit down 13.3% and 19.3% respectively. With the stock market crashing in […]
New Kentucky Lawsuit Takes Aim at Risk in Public Pension Investments
The state of Kentucky revived and expanded a lawsuit that claims former officials of the state pension system and hedge fund firms violated their fiduciary duty by choosing risky investments. The state is demanding compensation from hedge funds for their excessive fees and underperformance. Kentucky’s pension system remains one of the worst-funded in the nation, […]
How do you define ESG investment? It depends on who you ask
The term “ESG” – Environmental, Social, and Governance-based investing – was first used in an International Finance Corporation 2005 report Who Cares Who Wins and developed a widespread use in the following years. Currently, there is over $20 trillion in ESG assets under management and is a growing sector. One of the key issues with […]
Statement from IPFI President Christopher Burnham on the SEC’s Proposed Rule on Proxy Advisory Firms
Washington, DC – The Securities and Exchange Commission is holding an open meeting today to finalize a rule to enhance transparency, improve disclosures, and increase confidence in the proxy advisory process. The rule under consideration could bring the proxy advisory industry in line with every other financial service by ensuring they are registered as fiduciaries – and can be […]
Congress Eyes Additional Pension Relief
At the end of June, word was coming out of Washington that there could be a second stimulus plan coming. President Trump and Treasury Secretary Mnuchin both voiced optimism that the second round of COVID-19 relief would be imminent. Sure enough, it is reported that next week the second plan, the HEROES Act, will be […]
Rhode Island Supreme Court Weighs In On Providence’s Unfunded Pension Liabilities
Earlier this month, the Rhode Island Supreme Court ruled on a case with significant long-term implications for Providence’s critically underfunded pension system. The court reversed a 2012 city pension reform act, effectively prohibiting cities in Rhode Island from executing pension reform without the consent of pensioners. City leaders voiced their disappointment regarding the outcome, […]
For Immediate Release: IPFI Advisory Board Weighs in on the Proposed Dept. of Labor ESG Rule Change
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 […]