GLG News by Pension Accounting Specialists

1. Asset managers and plan sponsors alike should have a vested interest in valuation best practices. 2. Poor valuation process adversely impacts nearly every element of investment management, including hedge size, portfolio re-balancing, performance reports and the ability to attract and retain institutional...

1. The need for talented pension risk managers is growing. 2. Demand is starting to quickly outweigh supply and driving up wages as a result. 3. Pension investment returns and related strategy must consider the cost of attracting and retaining talented risk managers.

1. How can plan sponsors embrace best practices if proper economic incentives are not in place? 2. What are the ills of excessive regulation with respect to commercial risk-taking? 3. Is there a role for bold leadership on the part of plan sponsors?

Dr. Mangieor's analysis is insightful and correct. Investors need better pension/OPEB disclosures regarding risks. However all the risk within a pension scheme must be recognized, understood, and managed. Too many times the risk within a pension/OPEB scheme is viewed as having a single dimension: default...

US auto manufacturers face a huge dilemma.  To be competitive with Toyota and other non-US auto manufacturers, they must lower health care costs and unfunded liabilities.  (This is well documented in the referenced article.)  What is interesting is the impact on value from both the...

1. Investors must be aware of who and how decisions are made by plan sponsors. 2. A bad or incomplete decision about employee benefits could cost big money and drive share price downward. Fiduciary risk has economic impact.

1. Liability-driven investing has another cost in the form of higher short-term rates. 2. LIBOR has been moving away from the Fed. Funds rate. 3. Central bankers may have a tougher time keeping market volatility in check. That adversely impacts pension plan financial health.

1. Understanding a plan sponsor's investment risk exposure is necessary but not sufficient. 2. Plan participants, corporate investors and lenders all need to know whether pension investment risk could create financial problems. 3. There is limited information currently available. A move by FASB to require...

1. Service providers who do not consider their implicit or explicit fiduciary status vis-a-vis public or corporate pension plans could find themselves in the litigation cross hairs. 2. Pension litigation is skyrocketing with fiduciary breach allegations leading the way.

The silver lining in the so-called Subprime Crisis is that it is yet another event that illustrates the need for greater quantities of more useful information in financial statements and financial reports.  As long as management chooses to comply only with the most minimum of standards, they are...