Deals and People August 9, 2010

Kim Adds CIO to his List of Titles

August 9, 2010 (PLANSPONSOR.com) – New York Life Insurance Company announced that Executive Vice President John Y. Kim, 49, will add the Chief Investment Officer post to his other duties at the end of 2010.
Reported by

Vice Chairman and Chief Investment Officer Gary Wendlandt elected to retire at year-end after nearly 40 years in the industry, according to a news release. Kim is currently president and CEO of New York Life Investments.

Kim joined New York Life in 2008 after a 25-year record with knowledge of investment management and strong operational skills running numerous businesses (see Kim to Head Up NYLIM). 

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Prior to joining New York Life, he had been president of Prudential Retirement, where he led its defined benefit, defined contribution and guaranteed products businesses, and before that he was president of CIGNA Retirement and Investment Services.

Kim also spent 17 years with Aetna Life & Casualty, where he rose to the position of CEO and Chief Investment Officer of Aeltus Investment Management as well as CIO of Aetna Life Insurance and Annuity Company.

He is a graduate of the University of Michigan and holds an MBA degree from the University of Connecticut.

Investing August 9, 2010

Q210 Bleak in BNY Mellon Master Trust Arena

August 9, 2010 (PLANSPONSOR.com) – The median plan in the BNY Mellon U.S. Master Trust Universe posted a -4.87% return for the second quarter of 2010.
Reported by

A BNY Mellon news release said that was more than eight percentage points lower than last quarter, and ended a run of four consecutive quarters of positive performance.  Year to date, the median plan returned -1.35%, but for the twelve-months ended June 30, 2010 the median return was 13.23%.

According to the news release, highlights of the latest data included that:

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  • Only 7% of plans posted positive results for the three-month period ending June 30, 2010.  On a year-to-date basis, 27% of plans saw positive returns.
  • Despite the negative performance, 97% of the plans matched or outperformed the universe custom policy return of -8.08 in the second quarter.  For the year-to-date period, 94% of the plans outperformed the policy, which was down 3.9%.
  • Health care plans were the top performing plan type for the second quarter with a -3.4% median return, followed by endowments, foundations, corporate pensions, Taft-Hartley and public plans.  
  • U.S. fixed income led all asset classes for the quarter with a median return of 3.25%, versus the Barclays Capital U.S. Aggregate Bond Index return of 3.49%.  Non-U.S. fixed income posted a median return of -0.72%, ahead of the Citigroup Non-U.S. World Government Bond Index return of -1.26%.  U.S. equities posted a median return of -11.02%, compared to the Russell 3000 Index return of -11.32%. Non-U.S. equities returned -11.87%, outperforming the MSCI World ex USA Index return of -13.41%.  

BNY Mellon said that the average asset allocation for the second quarter was: U.S. equity 31%, U.S. fixed income 31%, non-U.S. equity 15%, non-U.S. fixed income 2%, alternative investments 10%, real estate 2%, cash 1%, and other (oil, gas, etc.) 8%.

With a market value of $1.05 trillion and an average plan size of $1.49 billion, the BNY Mellon U.S. Master Trust Universe consists of 701 corporate, foundation, endowment, public, Taft-Hartley and health care plans. 

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