Products November 18, 2011

Md. Retirement Agency Issues RFP for Corporate Governance Services

November 18, 2011 (PLANSPONSOR.com) - The Investment Division of the Maryland State Retirement Agency (SRA) has issued a Request for Information (RFI) from interested firms to provide various Corporate Governance Services.
Reported by

Specifically, the RFI seeks one or more firms to provide Corporate Governance Research and Proxy Services; Iran/Sudan Research Services; and Iran/Sudan Engagement Services.    

The RFI states, “The Board of Trustees of the System, through its Corporate Governance Committee, is committed to actively, and prudently, addressing poor corporate governance practices or regulatory constructs, and otherwise responding to issues affecting the integrity of the capital markets and market participants, utilizing the tools and method available to proponents of good corporate governance.”  

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The Agency is seeking a cost-effective corporate governance research and proxy voting solution that provides the System with a turn-key proxy voting service and robust research platform.  

The Iran/Sudan Divestment Act, enacted in 2008, requires the Board of Trustees to also review its investments to determine if any accounts are invested in companies doing business in Iran or Sudan, to engage with those companies that are, and to divest itself of any company not willing to stop doing so, unless the Board of Trustees determines, in good faith, that the action is consistent with its fiduciary responsibilities.  

Responses to the RFI are due by 4:00 p.m. on December 19, 2011.  The RFI has been posted to the agency’s website: http://sra.maryland.gov/Agency/Investment/Default.aspx.
Administration November 18, 2011

Pension Risk Transfer Index Ticks Down in October

November 18, 2011 (PLANSPONSOR.com) - The Dietrich Pension Risk Transfer Index, which tracks the relative attractiveness of annuitizing pension liabilities, declined in October 1.78 points from its prior value.  
Reported by

The index fell to 86.45 as of November 1, 2011, from 88.23.  The company indicated the change was driven by declining annuity interest rates and spreads, despite gains in pension funding levels. The indexes’ current annuity discount rate proxy of 3.36% represents a new low, despite still wide annuity spread levels which offer significant value relative to spot rate treasury and corporate bond yields.   

While conditions remain generally suboptimal, strategic annuity purchases for targeted groups of liabilities may be attractive for certain frozen pension sponsors who have shortened their investment horizon and/or reduced asset return assumptions, Dietrich said.   

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The Dietrich Pension Risk Transfer Index can be found at https://www.dietrichassociates.com.

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