Pension Pulse

My last post was about the Green Revolution and how it will transform the future of our planet. Another equally important revolution will be the biotech revolution which has been taking shape over the last few years, growing at breathtaking speed. A friend sent me the video above discussing a potential cure for Multiple Sclerosis (MS). Recent research by Dr. Mark Mannie of East Carolina's University's Department of Microbiology and Immunology has led to a potential vaccine for Multiple Sclerosis. This same research could also lead to vaccines for other autoimmune diseases. Click on the video above to watch the discussion on this new vaccine called FP88. Now, I have been around long enough to know that just because something works on an animal, it does not mean that it will work on humans. I have seen many things work on the animal model of MS but eventually fail on humans. But the new technologies are much more specific in treating a whole host of diseases and I am confident th...

I updated my last post on the pension crisis to include a discussion on the Missouri State Employees’ Retirement System ( MOSERS ), one of the best pension funds in North America. Also, read my response to Bill Tufts' kind message in the comments at the end of the post. But today I want to switch gears and talk to you about the future, or at least the future I hope we get to see. Earlier this week, Charlie Rose assembled an excellent panel for a conversation about leadership at Harvard Business School's centennial celebration. The panel included John Doerr, Jeffrey Immelt, James Wolfensohn, Meg Whitman and Anand Mahindra. This was the best interview I saw in a long time and you need to see it to understand where we are heading. Click here to view the discussion. The whole panel impressed me. These are all accomplished business leaders in their fields, but the person who impressed me the most was John Doerr, the successful venture capitalist who I already alluded to earlier t...

The California Public Employees’ Retirement System ( CalPERS ) , the largest US public pension fund, saw the value of its assets fall by about $50billion (20%!!!) from the end of February to October 10 because of stock markets falls and other heavy investment losses : The pension fund now looks set to tap Californian state employers for higher contributions, at a time when the state's budget is stretched to the limit as a result of its own investment problems. CalPERS, which was one of the first public pension funds to begin investing in private equity and hedge funds, has seen its net worth fall from approximately $240bn in February to $190bn today. A decision on whether employers will need to increase their contributions will not be taken until returns for the 2008 fiscal year are known. "Cushioning the impact of investment setbacks is the fact that Calpers experienced double-digit gains in the four years leading up to the 2007/08 fiscal ...

Before I get into commercial real estate, a few words about the manic-depressive stock market. As everyone knows, stocks plunged today with most major indexes falling more than 4 percent, including the Dow Jones industrial average, which finished off its lows with a loss of 514 points. Now before you go off and sell everything, take a step back from all the noise. From a technical point, stocks might be retesting their lows : The big themes weighing on stocks are the same ones that had the market down this morning: Dollar strength as investors flee "risk assets" be they emerging markets, commodities (oil hit a 16-month low) and, yes, equities. Despite ultra low yields and continued improvement in credit indicators, Treasuries continue to attract buyers seeking safety - or the perception thereof. Concerns about a global economic slowdown slamming commodities and emerging markets, which in turn is reinforcing the dollar's strength. Commodity producers like Exxon, ConocoPhi...

It's official: Argentina's President Cristina Kirchner moved Tuesday to nationalize $30 billion in private pension funds, saying it was necessary to protect retirees in the global financial crisis : "We are taking this decision in the international context in which the G-8 countries and others are seeking ways to protect banks," Kirchner said as she presented the nationalization plan, which still must be approved by the Argentine congress. "We are protecting our retirees and workers," she said. The government is taking the step after the 10 companies in the private pension sector suffered severe losses in the crumbling stock and bond markets, according to an official who insisted on anonymity. Local media cited official sources as saying the funds had incurred losses of around 20 percent as global financial markets succumbed to panic. The Argentine stock market plummeted another 11 percent Tuesday in reaction to the announcement, as the private pension funds...

World markets soared today on easing of interbank lending rates . And wait, if my vested interests theory is right, this rally has got ways to go before hedge funds, mutual funds, and pension funds can breath easier. They are all underperforming so badly that they will be buying this sucker up on every dip. Today I want to write about the Great Pension Heist. The great what? The Great Pension Heist is a sad chapter in financial history that is still unfolding. Let me explain. I came across this article today discussing how hedge fund, private equity and real estate fund managers collected huge fees from the New Jersey Division of Investment despite underperforming their benchmarks: Hedge fund managers and other private investment specialists made $62 million last year handling a small portion of New Jersey's retirement accounts -- nearly seven times what the state paid its own employees to manage a much larger basket of holdings, a new state report shows. The Division of Invest...