Pension Pulse

As Governor Rod Blagojevich's Illinois Senate impeachment trial started, he hit the media circuit, answering questions about Oprah Winfrey, foul language and why he won't resign. Blagojevich told CNN's Larry King he considered approaching Winfrey for an open U.S. Senate seat, and after his arrest drew inspiration from Martin Luther King, Gandhi and Nelson Mandela. Poor old 'Blago' is really making a fool of himself but he wants to be king for today and the media circuit is going crazy, lapping it up for ratings. But pension fund presidents could learn a thing or two from Illinois' delusional Governor. As they get ready to report their dismal performances, they might also want to recite some poetry from Rudyard Kipling. More fittingly, they can extol the virtues and benefits of alternative investments and recite Shakespeare's Sonnet 18: Shall I compare thee to a summer's day? Thou art more lovely and more temperate. Rough winds do shake the darling buds...

Sunday mornings are reserved for political news shows. I start off with ABC's This Week , then I move around to CNN and other shows depending on the topic being discussed. The big topic these days is President Obama's aid plan and how it will stimulate the U.S. economy : President Barack Obama met with his economic advisers Saturday after he asked Americans to support his economic package as a way to better schools, lower electricity bills and health coverage for millions who lose insurance. The two-hour session in the Roosevelt Room focused the proposed $825 billion economic stimulus package that Congress is considering. The group also discussed the upcoming federal budget, Obama's first chance to shape the country's spending amid a recession that lost 2.6 million jobs last year, the most in a single year since World War II. "Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of ...

The cold winter weather is pounding Florida's citrus belt , putting the state's US$9.3 billion-per-year citrus industry in jeopardy of a widespread freeze . But as you will read below, $9.3 billion is a pittance compared to the losses Florida's State Board of Administration ( SBA ) racked up last year. Back in August, I commended Florida's SBA, citing an article which ranked it high among public pension funds . In particular, I stated that Canadian public pension funds can learn from Florida's SBA , focusing on the clear benchmarks they presented in all asset classes, including alternative investments like real estate and private equity. I still think Canadian public pension funds should clearly present the benchmarks governing internal and external investment activities, but I was dead wrong about Florida's SBA being transparent and accountable and I did not take a closer look at their exposures to alternative asset classes and equities or the lax oversight tha...

Stocks got clobbered again today but pared some of the losses stemming from Microsoft and bank woes : Wall Street has again succumbed to a disheartening reality -- the recession is taking a heavy toll on U.S. companies. Stocks closed sharply lower Thursday on more bad news about earnings and ever-increasing worries about the banking industry. The major indexes, which plunged and then soared the first two trading days of the week, ratcheted up and down during the course of the session; the Dow Jones industrial average fell as much 271 points, came close to breaking even and then slumped before closing down 105. "We're seeing a little bit of increase in volatility because things have not gotten much better," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group. Microsoft Corp. set the tone for the day and made clear more pain was to come before an elusive economic recovery would emerge. The company surprised investors Thursday morning by re...