Fall 2022 Issue of NCPERS PERSist Now Available
The Fall 2022 issue of NCPERS PERSist is now available.
PERSist is a quarterly educational journal exclusively available to NCPERS members. Find a preview of what's in the latest issue below:
Liability Aware Investing (LAI) for Public Pension Plans
By: Michael Buchenholz, CFA, FSA of J.P. Morgan and Jason Malinowski, CFA of Seattle City Employees' Retirement System
Public pension plans tend to focus disproportionately on investment performance while paying only cursory attention to liability performance. We believe public pension liabilities can, and deserve to, play a more central role in portfolio construction and holistic performance measurement.
The Importance of Private Enforcement of Federal Securities Laws: Institutional Investors Continue to Outpace SEC
By: Javier Bleichmar, Nancy Kulesa, and Erin Woods of Bleichmar Fonti & Auld LLP
This article discusses why it remains important for public pension plans to continue to monitor and participate in securities class actions so that plan assets can be maximized. It may not be in plans' best interests to rely solely on government regulators.
Is Shipping Cost Inflation About to Peak?
By: Yan Krasov, CFA, William Blair Investment Management
From their peak earlier this year, spot trucking rates have been in decline, marking a shift versus prior years—and given how impactful shipping-cost inflation was across the broader economy from 2020 to 2022, the recent change in trend has widespread implications for many companies.
Recent Trends in Securities Litigation
By: Jonathan Saidel and Jack Stalzer of Rosen Law Firm
Securities fraud class action litigation is a paramount means through which investors of all types, including institutional pension funds, can recover investment losses in cases of corporate misconduct. Securities class actions have been a growing field, fueled by increases in cryptocurrency filings, COVID-19 filings, and SPAC filings.
Monitoring Global Class Actions as Part of ESG Policies
By: Noah Wortman, Pogust Goodhead
The past few years have shown that the current social justice zeitgeist has increased market and shareholder attention to company ESG policies. Indeed, global class actions, ESG and investor stewardship principles have been developing on parallel tracks, but in the months and years to come, they are likely to intersect with increasing frequency.
The Impact of Inflation on Public Pensions
By: Matthew Strom, FSA, MAAA, EA, Segal
Over the last year inflation has hit record highs, creating a strong effect on our goods, services, travel, and lives in general. In this article, we cover the most common ways that high inflation may affect public pension plans and their funding.
ESG From the Practitioner Point of View
By: Ricardo Daley, Victory Capital Management
Environmental, Social and Governance (ESG) investing has gained immense popularity in the last few years, and there is a good likelihood the practice will continue to see rapid adoption in the future. For practitioners of ESG investing, the challenge of doing good and doing well often relies on an old routine.
Market Perspectives: The Secondary Market
By: Suzanne Gauron, Global Head of Private Equity Strategies, Alternatives Capital Markets & Strategy, Goldman Sachs Asset Management
Many pension funds are finding that the strong performance of their private market portfolios coupled with declines in liquid asset prices have left them over-allocated relative to their private equity targets. Some are considering whether and how to rebalance their portfolios. Goldman Sachs Asset Management's Suzanne Gauron highlights a few considerations for secondary market selling.
Proposed Climate Change Disclosure Rule for Public Companies
By: Rachel A. Avan, Saxena White P.A.
In March 2021, the U.S. Securities and Exchange Commission voted to implement a new rule that requires public companies to disclose climate-related risks, greenhouse gas emissions, and carbon footprints. While the rule would ensure disclosure of information relevant to many investors' decisions, it is also controversial both with regard to its subject matter and its disclosure regime and remains subject to review.
The Fed's “Summer of 75” Closes with Another Big Hike
By: Brian Nick, Nuveen
Persistent inflation has left the Fed with little choice but to continue its recent run of large interest rate hikes. With monetary policy now firmly in restrictive territory, we expect a moderation in inflation…but at the likely cost of weaker job creation and slower growth.
Growth Pains Lead to Lessons Learned
By: Jason Williams, CFA, Lazard Asset Management
After relentless multi-year outperformance, growth stocks around the world have finally seen sustained and significant underperformance. The end of the decade-long bull run for growth had been predicted many times over, but in our view, what finally set the end in motion were the downstream impacts of persistent inflationary pressures.
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