Tag: ai-CIO

Insurers Have Been Draining Funds from New Jersey’s Pensions for 15 Years

Mary Pat Campbell

Link: https://www.ai-cio.com/news/insurers-draining-funds-new-jerseys-pensions-15-years/

Excerpt:

Insurance firms have been siphoning off money from New Jersey’s pension funds for the past 15 years thanks to a policy decision that shifted financial obligations for employee injuries to pension funds, according to an investigation by acting state Comptroller Kevin Walsh.

A report on the investigation said that a 2006 policy adopted by the Division of Workers’ Compensation (DWC) encourages injured employees to accept continuing medical monitoring and coverage instead of cash settlements. The report said the approach, which puts the financial burden on pension funds to pay workers rather than on insurance firms, has provided “a windfall to insurers and financially harms the pension funds.”

At least 114 public employees received both an accidental disability pension and a medical monitoring settlement between 2016 and 2019, according to the report. However, it said the exact cost to the pension funds was unknown because there are no records or data on what insurers would have paid in the absence of medical monitoring settlements.

Author(s): Michael Katz

Publication Date: 8 February 2021

Publication Site: ai-CIO

How GameStop’s Robinhood Boosters Are Clobbering Hedge Funds

Mary Pat Campbell

Link: https://www.ai-cio.com/news/gamestops-robinhood-boosters-clobbering-hedge-funds/?apos=2_art&utm_source=newsletter&utm_medium=email&utm_campaign=CIOAlert

Excerpt:

Investors who sold GameStop short have lost $23.6 billion so far in 2021 through Wednesday, by the count of financial analytics firm S3 Partners. That includes $14.3 billion yesterday, as the retailer’s stock price shot up 135%.

In response to the controversy, Robinhood and Interactive Brokers Group curbed trading on GameStop, AMC, and several others Thursday morning. GameStop shares began to reverse direction. How long the restrictions would last was unclear. Frustrated amateur traders, of course, might just take their business to platforms that don’t limit them.

The pain is intense for these hedge funds. Citron Capital’s Andrew Left, often disparaged on Reddit, just said his firm folded a GameStop short bet, after losing 100% of its money spent on the transaction. Melvin Capital Management has slumped about 30% as the result of GameStop short sales, according to published reports. New York Mets owner Steve Cohen’s Point72 fund and Ken Griffin’s Citadel have stakes in Melvin.

Author: Larry Light

Publication Date: 28 January 2021

Publication Site: ai-CIO

The Big Challenges Facing the New Kentucky Pension Plan CIO

Mary Pat Campbell

Link: https://www.ai-cio.com/in-focus/cio-spotlight/big-challenges-facing-new-kentucky-pension-plan-cio/?apos=1_art&utm_source=newsletter&utm_medium=email&utm_campaign=CIOAlert

Excerpt:

When Steven Herbert started at the Kentucky Retirement Systems (KRS) last week, after a monthslong talent search, he became the sixth investment chief in 13 years to take the helm at the struggling pension program. 

Kentucky Retirement Systems CIO Steven Herbert

The $18.3 billion state system has had a tough time holding on to its investment staff. Herbert will replace Rich Robben, the former CIO who departed last fall for a consulting position. But other allocators have decamped before him, including David Peden, now a consultant at Mercer subsidiary Pavilion; TJ Carlson, now CIO at Texas Municipal; Adam Tosh, now senior portfolio manager in Alaska’s Bristol Bay Native Corporation; and John Krimmel, now an NEPC consultant.  

Author: Sarah Min

Publication Date: 28 January 2021

Publication Site: ai-CIO

Two NYC Pension Funds Divesting $4 Billion from Oil Companies

Mary Pat Campbell

Link: https://www.ai-cio.com/news/two-nyc-pension-funds-divesting-4-billion-oil-companies/

Excerpt:

Oil companies are quickly losing investors, including two pension funds in New York City, as more asset managers are pivoting to renewable options in the battle against climate change and for environmental, social, and governance (ESG) investing. 

The two pension funds will divest an estimated $4 billion from fossil fuel companies. NYC Comptroller Scott Stringer on Twitter called the move “one of the largest divestments in the world.”

The move to sell holdings in oil companies mirrors the divestment from tobacco companies two decades ago. 

The $77.4 billion New York City Employees’ Retirement System (NYCERS) and the $91.4 New York City Teachers’ Retirement System (TRS) approved the divestments in a vote on Monday. They represent the largest pension funds within the $239.8 billion New York City Retirement Systems.

Author: Ellen Chang

Publication Date: 26 January 2021

Publication Site: ai-CIO

Democrats Introduce Bill to Protect Pensions, Expand PGBC’s Power

Mary Pat Campbell

Link: https://www.ai-cio.com/news/democrats-introduce-bill-protect-pensions-expand-pgbcs-power/

Description: Bill introduced in House of Representatives – EPPRA (Emergency Pension Plan Relief Act of 2021) intended for multiemployer pension protection. Boosts PBGC MEP guarantee, stops benefit reductions, allows for partition of failing MEPs. Similar provisions had been in HEROES bill in 2020 (not passed).

Author: Michael Katz

Publication Date: 22 January 2021

Publication Site: ai-CIO