{"product_id":"pension-revolution-9780470087237","title":"Pension Revolution","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003ePraise for Pension Revolution\u003cbr\u003e \u003cbr\u003e When Keith Ambachtsheer puts his keen mind to work on a problem, watch out! Here he exposes today''s fragile arrangements for the most serious social dilemma of our times--financing retirement. Then he provides a compelling and powerful set of solutions. His writings are essential reading for all who care about the future of American living standards.\u003cbr\u003e --Peter Bernstein, founder and President, Peter L. Bernstein, Inc., and author of Capital Ideas and Against the Gods\u003cbr\u003e \u003cbr\u003e This book describes one of the most ingenious inventions in the history of mankind: pension funds offering credible promises about old-age income. It reads like a thriller: how can well-governed pension funds be created in an imperfect world in which mortals wrestle with foibles and moral shortcomings? One of the world''s leading experts on pensions searches for the answer--and finds it.\u003cbr\u003e --Lans Bovenberg, Scientific Director, Network for Studies on Pensions\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTrade Review\u003c\/b\u003e\u003cbr\u003e“I enjoyed reading the book…Well documented, the author makes it clear that it is time to change our thinking about asset management.” (\u003ci\u003eInvestment \u0026amp; Pensions Europe, \u003c\/i\u003e April 2007)\u003ci\u003e \u003c\/i\u003e  \u003cp\u003e“This book is a valuable tool in raising awareness of the current climate and provides people with the information they need to create efficient pension solutions in the future.\" \u003ci\u003e(Pensions World,\u003c\/i\u003e May 2007)\u003c\/p\u003e \u003cp\u003e\u003cbr\u003e  \u003c\/p\u003e\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003e\u003cb\u003ePreface: Peter Drucker’s Pension Revolution: Here at Last xxiii\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIntroduction: Why a Pension Revolution Now? xxvii\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Trouble with DB Plans xxvii\u003c\/p\u003e \u003cp\u003eDC Plans Are Not the Answer Either xxviii\u003c\/p\u003e \u003cp\u003eExpert Pension Co-ops xxix\u003c\/p\u003e \u003cp\u003eTOPS Tipping Points xxx\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART ONE The Pension Revolution: Touchstones\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Are Pension Funds ‘‘Irrelevant’’? 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAn ‘‘Unreasonable’’ Actuary? 3\u003c\/p\u003e \u003cp\u003eExley’s Four Irrelevance Propositions 4\u003c\/p\u003e \u003cp\u003eSo What Is Relevant? 4\u003c\/p\u003e \u003cp\u003eResponding to Exley 6\u003c\/p\u003e \u003cp\u003eRelevant Pension Funds: Building the Case 6\u003c\/p\u003e \u003cp\u003eManaging Retirement Income Risks 7\u003c\/p\u003e \u003cp\u003eLeveling the Informational Playing Field 7\u003c\/p\u003e \u003cp\u003eGetting the Execution of the Idea Right 8\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 The Pension Revolution—Are You a Believer Yet? 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Revolutionary Reordering of the Pensions Firmament 10\u003c\/p\u003e \u003cp\u003eFrom Fuzzy Pension Deals to ‘‘Risk-Sharing Co-ops’’ 10\u003c\/p\u003e \u003cp\u003eToward Pension ‘‘Business Models’’ That Work: The Risk Issue 11\u003c\/p\u003e \u003cp\u003eToward Pension ‘‘Business Models’’ That Work: The Scale Issue 12\u003c\/p\u003e \u003cp\u003eThe Pension Governance Issue 13\u003c\/p\u003e \u003cp\u003eCOPYRIGHTED MATERIAL\u003c\/p\u003e \u003cp\u003eTwo Role Models 14\u003c\/p\u003e \u003cp\u003ePGGM 14\u003c\/p\u003e \u003cp\u003eSunSuper 15\u003c\/p\u003e \u003cp\u003eGreat Treasures? 15\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 After the Perfect Pension Storm: What Now? 16\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFrom Vegas to Oxford: In Search of Answers 16\u003c\/p\u003e \u003cp\u003eDo Nothing or Something? 17\u003c\/p\u003e \u003cp\u003eThe Corporate Context: Two Basic Choices 18\u003c\/p\u003e \u003cp\u003eNew DC Plan ‘‘Business Model’’ Also Needed 19\u003c\/p\u003e \u003cp\u003eThe Industry\/Public-Sector Pension Context 19\u003c\/p\u003e \u003cp\u003eThe ‘‘Fair Value’’ Question 20\u003c\/p\u003e \u003cp\u003eBetter Public Pensions Policy 21\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Beyond Portfolio Theory: The Next Frontier 22\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestment Theory’s Next Frontier: The Academic View 22\u003c\/p\u003e \u003cp\u003eInvestment Theory’s Next Frontier: Two Further Considerations 24\u003c\/p\u003e \u003cp\u003eThe Next Frontier: ‘‘Integrative Investment Theory’’ 25\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 The United Airlines Case: Tipping Point for U.S. Pension System? 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe United Airlines Case 29\u003c\/p\u003e \u003cp\u003eA Good Question and Two Very Different Answers 30\u003c\/p\u003e \u003cp\u003eERISA’s ‘‘Sole Interest’’ Rule 31\u003c\/p\u003e \u003cp\u003eLessons from Abroad 32\u003c\/p\u003e \u003cp\u003eSearching for ‘‘Supreme’’ Answers 33\u003c\/p\u003e \u003cp\u003eThe UAL Case in Context 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Peter Drucker’s Pension Revolution After 30 Years:\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNot Over Yet 36\u003c\/p\u003e \u003cp\u003eTwo Unfashionable Themes 36\u003c\/p\u003e \u003cp\u003ePolitico-Agency Issues 37\u003c\/p\u003e \u003cp\u003ePension Contract and Risk Issues 39\u003c\/p\u003e \u003cp\u003eInvestment Beliefs 40\u003c\/p\u003e \u003cp\u003ePension Fund Governance 40\u003c\/p\u003e \u003cp\u003eStill Much Work to Do 41\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Winning the Pension Revolution: Why the Dutch Are Leading the Way 42\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Globe’s Number One Pensions Country 42\u003c\/p\u003e \u003cp\u003eCulture, Compactness, and Leadership 44\u003c\/p\u003e \u003cp\u003eRegulatory Leadership 45\u003c\/p\u003e \u003cp\u003eResearch Leadership 46\u003c\/p\u003e \u003cp\u003eA Remaining Challenge: Solving the Organization Design Puzzle 46\u003c\/p\u003e \u003cp\u003eWhat About the Other Pensions Countries? 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Pension Reform: Evolution or Revolution? 48\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Pension ‘‘Tipping Point’’ Indeed 48\u003c\/p\u003e \u003cp\u003eWhat Should Happen? 49\u003c\/p\u003e \u003cp\u003ePension Reform in the United States 50\u003c\/p\u003e \u003cp\u003ePension Reform Elsewhere 51\u003c\/p\u003e \u003cp\u003ePension Reform: Evolution or Revolution? 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART TWO Building Better Pension Plans\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Can Game Theory Help Build Better Pension Plans? 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePension Games 57\u003c\/p\u003e \u003cp\u003eWhy do Pension Game Switches Occur? 58\u003c\/p\u003e \u003cp\u003eWho Are the Stakeholders and What do They Want? 59\u003c\/p\u003e \u003cp\u003eSources of Risk in Pension Schemes 60\u003c\/p\u003e \u003cp\u003eMitigating Micro Risks 60\u003c\/p\u003e \u003cp\u003eCan We Mitigate Macro Risks? 61\u003c\/p\u003e \u003cp\u003eIs Investment Risk Worth Taking in DB Plans? 61\u003c\/p\u003e \u003cp\u003eCan Game Theory Build Better Pension Plans? 62\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 If DB and DC Plans Are Not the Answers, What Are the Questions? 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFrom Answers to Questions 63\u003c\/p\u003e \u003cp\u003eUltimate Pension Questions and Their Consequences 64\u003c\/p\u003e \u003cp\u003eUnderwriting Pension Mismatch Risk: Any Volunteers? 64\u003c\/p\u003e \u003cp\u003eShould Pension Mismatch Risk Be Minimized? 66\u003c\/p\u003e \u003cp\u003ePension-Delivery Institutions 67\u003c\/p\u003e \u003cp\u003eBenchmarking Traditional DB and DC Plans 67\u003c\/p\u003e \u003cp\u003eThe Way Ahead 68\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Human Foibles and Agency Dysfunction: Building Pension Plans for the Real World 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSome Fundamental Questions First 69\u003c\/p\u003e \u003cp\u003eBack to First Principles 70\u003c\/p\u003e \u003cp\u003eHuman Foibles 71\u003c\/p\u003e \u003cp\u003eAgency Issues 72\u003c\/p\u003e \u003cp\u003eCounteracting Human Foibles 73\u003c\/p\u003e \u003cp\u003eMinimizing Agency Costs 74\u003c\/p\u003e \u003cp\u003eTOPS, Employers, and Public Policy 75\u003c\/p\u003e \u003cp\u003eTOPS and DB Plans 77\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 DB Plans and Bad Science 78\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScience and the Design of Pension Contracts 78\u003c\/p\u003e \u003cp\u003eThe TOPS Contract 78\u003c\/p\u003e \u003cp\u003eTaking on Investment Risk: Implications 79\u003c\/p\u003e \u003cp\u003eIs Investment Regime Risk Insurable? 80\u003c\/p\u003e \u003cp\u003eIntergenerational Bargaining 81\u003c\/p\u003e \u003cp\u003eRobust Course-Correction Mechanisms Required 82\u003c\/p\u003e \u003cp\u003eThe Flawed DB Model 82\u003c\/p\u003e \u003cp\u003eBad Science 83\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13 Peter Drucker’s Pension Legacy: A Vision of What Could Be 84\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTwo Handshakes to Remember 84\u003c\/p\u003e \u003cp\u003eThe Melbourne Message 85\u003c\/p\u003e \u003cp\u003eTOPS: Neither DC nor DB 86\u003c\/p\u003e \u003cp\u003eTOPS and Investing 87\u003c\/p\u003e \u003cp\u003eTOPS and Governance 87\u003c\/p\u003e \u003cp\u003eTOPS and the Real World 88\u003c\/p\u003e \u003cp\u003eThe Drucker Visit 89\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART THREE Pension Fund Governance\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 14 Reinventing Pension Fund Management: Easier Said than Done 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Paradigm Shift? 93\u003c\/p\u003e \u003cp\u003eNovelties of Fact 94\u003c\/p\u003e \u003cp\u003eNovelties of Theory 94\u003c\/p\u003e \u003cp\u003ePension Industry Responses 96\u003c\/p\u003e \u003cp\u003eCrossing the ‘‘Innovation Chasm’’ 97\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 15 Should (Could) You Manage Your Fund Like Harvard or Ontario Teachers’? 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFour Things in Common 99\u003c\/p\u003e \u003cp\u003eLegal Foundations: Solid or Not? 100\u003c\/p\u003e \u003cp\u003eGovernance and Management: Understanding the\u003c\/p\u003e \u003cp\u003eDifference 101\u003c\/p\u003e \u003cp\u003eInvestment Beliefs: Theirs or Yours? 102\u003c\/p\u003e \u003cp\u003eInvestment Processes: Like Wall Street? 103\u003c\/p\u003e \u003cp\u003eShould You Manage Like HMC or OTPP? 104\u003c\/p\u003e \u003cp\u003eCould You Manage Like HMC or OTPP? 104\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 16 ‘‘Beauty Contest’’ Investing: Not Dead Yet 106\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e‘‘D´ej `a Vu All Over Again’’ 106\u003c\/p\u003e \u003cp\u003eWhy ‘‘Beauty Contest Investing’’ Is Ugly 108\u003c\/p\u003e \u003cp\u003eIntegrative Investment Theory 108\u003c\/p\u003e \u003cp\u003eInvestment Beliefs 109\u003c\/p\u003e \u003cp\u003eManaging from the Inside Out 110\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 17 Eradicating ‘‘Beauty Contest’’ Investing: What It Will Take 112\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Ugliness of ‘‘Beauty Contest’’ Investing 112\u003c\/p\u003e \u003cp\u003eA Two-Pronged Eradication Strategy 113\u003c\/p\u003e \u003cp\u003eWhat Corporations Must Do 114\u003c\/p\u003e \u003cp\u003eWhat Investing Institutions Must Do 114\u003c\/p\u003e \u003cp\u003eA Debilitating Pension Fund Governance Problem 115\u003c\/p\u003e \u003cp\u003eLight at the End of the ‘‘Beauty Contest’’ Tunnel? 117\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 18 High-Performance Cultures: Impossible Dream for Pension Funds? 118\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThinking and Acting Like Goldman Sachs 118\u003c\/p\u003e \u003cp\u003eNew Research Results 119\u003c\/p\u003e \u003cp\u003eSpecific Governance and Management Challenges 121\u003c\/p\u003e \u003cp\u003eIn Conclusion 122\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 19 How Much Is Good Governance Worth? 124\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGovernance Quality and Organization Performance Should\u003c\/p\u003e \u003cp\u003eBe Related 124\u003c\/p\u003e \u003cp\u003eA Road Map for the Journey of Discovery 125\u003c\/p\u003e \u003cp\u003eThe Pension CEO Score and NVA Metrics: The Data 126\u003c\/p\u003e \u003cp\u003ePension CEO Scores Meet NVA Metrics 127\u003c\/p\u003e \u003cp\u003eFurther Insights 128\u003c\/p\u003e \u003cp\u003eThe Value of Good Governance 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART FOUR Investment Beliefs\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 20 The 10 Percent Equity Return Illusion: Possible Consequences 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConsequential Miscalculations 133\u003c\/p\u003e \u003cp\u003eWhy 10 Percent Doesn’t Work 134\u003c\/p\u003e \u003cp\u003ePainted into an Awkward Corner? 136\u003c\/p\u003e \u003cp\u003eConsequences 137\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 21 Stocks for the Long Run? . . . or Not? 139\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Debate with Jeremy Siegel 139\u003c\/p\u003e \u003cp\u003eHow Investment Theory Became Investment Practice 140\u003c\/p\u003e \u003cp\u003eWhat Is Wrong with These ‘‘Proofs’’ 141\u003c\/p\u003e \u003cp\u003eWhat if ‘‘Reality’’ Is Not a Random Walk? 141\u003c\/p\u003e \u003cp\u003eInvestment Regimes, Dividend Yields, and ERPs 143\u003c\/p\u003e \u003cp\u003eThe Post-Bubble Blues Decade 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 22 ‘‘Persistent Investment Regimes’’ or ‘‘Random Walk’’? Even Shakespeare Knew the Answer 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Ambachtsheer-Siegel Debate Revisited 145\u003c\/p\u003e \u003cp\u003eHistory on Our Side 146\u003c\/p\u003e \u003cp\u003eThe Investment Returns Story: How to Tell It 147\u003c\/p\u003e \u003cp\u003eThe ‘‘Investment Regime’’ Game: Spot Today’s Well Before\u003c\/p\u003e \u003cp\u003eIt’s Over, and Tomorrow’s Before It’s Gone on Too Long 148\u003c\/p\u003e \u003cp\u003e‘‘Regime Spotting’’ versus ‘‘Random Walk’’: Which Is More\u003c\/p\u003e \u003cp\u003eUseful? 149\u003c\/p\u003e \u003cp\u003eContents xv\u003c\/p\u003e \u003cp\u003eTheory on Our Side, Too 150\u003c\/p\u003e \u003cp\u003eFellow Travelers 150\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 23 The Fuss about Policy Portfolios: Adrift in Institutional Wonderland 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTempest in a Teapot . . . or Not? 151\u003c\/p\u003e \u003cp\u003eDuality in Finance: A Brief History 152\u003c\/p\u003e \u003cp\u003eFinancial Duality in Pension and Endowment Funds:\u003c\/p\u003e \u003cp\u003eBuilding the Conceptual Framework 153\u003c\/p\u003e \u003cp\u003eNew Insights from the CEM Database 154\u003c\/p\u003e \u003cp\u003eEnter Organizational Dysfunction 155\u003c\/p\u003e \u003cp\u003eDecisions by Default 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 24 Shifting the Investment Paradigm: A Progress Report 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe ‘‘Policy Portfolio’’ Debate Continues 157\u003c\/p\u003e \u003cp\u003eA Lens to See the World 158\u003c\/p\u003e \u003cp\u003eWhy the ‘‘Old’’ Lens Distorts 158\u003c\/p\u003e \u003cp\u003eA Varying Equity Risk Premium 159\u003c\/p\u003e \u003cp\u003eA New Lens 160\u003c\/p\u003e \u003cp\u003eA Higher Level of Thinking 161\u003c\/p\u003e \u003cp\u003eGlimmers of Light 163\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 25 Whose ‘‘Investment Beliefs’’ Do You Believe? 164\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWriting an ‘‘Investment Beliefs’’ Statement 164\u003c\/p\u003e \u003cp\u003eInferring Beliefs from Actions 165\u003c\/p\u003e \u003cp\u003eMeasuring Predictive Ability 166\u003c\/p\u003e \u003cp\u003eWhat about Market Timing and Strategic Asset Allocation? 167\u003c\/p\u003e \u003cp\u003eExpected ERP Powerful Predictor 167\u003c\/p\u003e \u003cp\u003eEnter Woody Brock 168\u003c\/p\u003e \u003cp\u003eIn Conclusion 169\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 26 Our 60-40 Asset Mix Policy Advice in 1987: Wise or Foolish? 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Roll the Clock Back 20 Years? 171\u003c\/p\u003e \u003cp\u003eLeibowitz’s Immunization Campaign 172\u003c\/p\u003e \u003cp\u003eInvestment Beliefs in 1987 173\u003c\/p\u003e \u003cp\u003eInvestment Beliefs in 1997 173\u003c\/p\u003e \u003cp\u003eThe Right Kind of Active Management 174\u003c\/p\u003e \u003cp\u003eWise or Foolish? 175\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 27 ‘‘But What Does the Turtle Rest On?’’ A Further Exploration of Investment Beliefs 177\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e‘‘But What Does the Turtle Rest On?’’ 177\u003c\/p\u003e \u003cp\u003eThe Efficient Markets Hypothesis: Fact or Fiction? 178\u003c\/p\u003e \u003cp\u003eThe Three Strikes against the EMH 179\u003c\/p\u003e \u003cp\u003eEconomists and ‘‘Operationally Meaningful Theorems’’ 180\u003c\/p\u003e \u003cp\u003eThe Adaptive Markets Hypothesis 180\u003c\/p\u003e \u003cp\u003eThe AMH’s Five Practical Implications 182\u003c\/p\u003e \u003cp\u003eThe AMH and Integrative Investment Theory 182\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 28 Professor Malkiel and the New Investment Paradigm: Raining on the Parade? 184\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRaining on the ‘‘New Paradigm’’ Parade? 184\u003c\/p\u003e \u003cp\u003eThe Bases for Malkiel’s Skepticism 185\u003c\/p\u003e \u003cp\u003eAn Alternative Conclusion 186\u003c\/p\u003e \u003cp\u003eWinning Evidence 187\u003c\/p\u003e \u003cp\u003eThe ‘‘Good Governance’’ Boost 188\u003c\/p\u003e \u003cp\u003eWe’re Both Right 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 29 The ‘‘Post-Bubble Blues Decade’’: A Progress Report 190\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAnother Nail in the IID Coffin 190\u003c\/p\u003e \u003cp\u003eWhy Non-IID Logic Wins 191\u003c\/p\u003e \u003cp\u003eInvestment Regimes in the Real World 192\u003c\/p\u003e \u003cp\u003eWhat Seems to Actually Be Happening? 193\u003c\/p\u003e \u003cp\u003eSome Actual Numbers 194\u003c\/p\u003e \u003cp\u003eThe Bottom Line 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART FIVE Risk in Pension Plans\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 30 Rethinking Funding Policy and Regulation: How Should Pension Plans Be Financed? 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Devil in the Details 199\u003c\/p\u003e \u003cp\u003eHow Many Course-Correction Tools? 200\u003c\/p\u003e \u003cp\u003eMaking Financing Decisions: In Whose Interest? 201\u003c\/p\u003e \u003cp\u003eAn Analytical Framework for Assessing DB Plan Financing\u003c\/p\u003e \u003cp\u003eDecisions 202\u003c\/p\u003e \u003cp\u003e‘‘Rational’’ Explanations 203\u003c\/p\u003e \u003cp\u003eFour Principles to Fund By 204\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 31 Funding Policy and Investment Policy: How Should They Be Integrated in DB Pension Plans? 206\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrinciples to Fund and Invest By 206\u003c\/p\u003e \u003cp\u003eWhat Makes DB Pension ‘‘Contracts’’ Risky? 208\u003c\/p\u003e \u003cp\u003eShould DB Funding Target Calculations Assume That More\u003c\/p\u003e \u003cp\u003eRisk Means More Return? 208\u003c\/p\u003e \u003cp\u003eIs Current ‘‘Accepted Actuarial Practice’’ Unacceptable? 209\u003c\/p\u003e \u003cp\u003eWhat Is an ‘‘Acceptable Level of Certainty’’? 210\u003c\/p\u003e \u003cp\u003eSurplus Ownership 211\u003c\/p\u003e \u003cp\u003eCleaning Up Our Act 212\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 32 Resurrecting Ranva: Adjusting Investment Returns for Risk 213\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eResurrecting RANVA 213\u003c\/p\u003e \u003cp\u003eRANVA in 1998 214\u003c\/p\u003e \u003cp\u003eMeasuring RANVA in the Real World 215\u003c\/p\u003e \u003cp\u003eThe 2000 to 2004 Experience: Lessons 216\u003c\/p\u003e \u003cp\u003eRemaining Barriers 217\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 33 Adjusting Investment Returns for Risk: What’s the Best Way? 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eResurrecting RANVA 219\u003c\/p\u003e \u003cp\u003eThe ‘‘Cost of Market Volatility’’ Approach 220\u003c\/p\u003e \u003cp\u003eThe ‘‘Cost of Insurance’’ Approach with Risk Buffers 222\u003c\/p\u003e \u003cp\u003eThe ‘‘Cost of Insurance’’ Approach with Put Options 223\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART SIX Measuring Results\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 34 Pension Plan Organizations: Measuring ‘‘Competitiveness’’ 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePension Plan Organizations and ‘‘Legitimacy’’ 227\u003c\/p\u003e \u003cp\u003e‘‘Provider of Choice’’ for Which Services? 228\u003c\/p\u003e \u003cp\u003eBenchmarking Pension Services 229\u003c\/p\u003e \u003cp\u003eCosting the Benefit Administration ‘‘Business’’ 229\u003c\/p\u003e \u003cp\u003eThe Benefit Administration Cost Equation 231\u003c\/p\u003e \u003cp\u003eBuild or Buy? 232\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 35 Measuring DC Plans as ‘‘Value Propositions’’: The New Imperative for Plan Sponsors 233\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSilk Purses from Sows’ Ears 233\u003c\/p\u003e \u003cp\u003eMeasures of ‘‘Prudence’’ 234\u003c\/p\u003e \u003cp\u003eThe ‘‘Own-Company Stock’’ Phenomenon 234\u003c\/p\u003e \u003cp\u003eUnderstanding DC Plan Total Returns 235\u003c\/p\u003e \u003cp\u003eDC versus DB Plan Cost Performance 237\u003c\/p\u003e \u003cp\u003eOther DC Plan Performance Metrics 239\u003c\/p\u003e \u003cp\u003e‘‘Value Proposition’’: Yes or No? 239\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 36 Measuring Pension Fund Behavior (1992 to 2004): What Can We Learn? 240\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Well-Endowed Database 240\u003c\/p\u003e \u003cp\u003eCurrent International Investment Policy and Implementation\u003c\/p\u003e \u003cp\u003eStyle Differences 241\u003c\/p\u003e \u003cp\u003eTen-Year Investment Policy and Implementation Style\u003c\/p\u003e \u003cp\u003eTrends for U.S. Funds 242\u003c\/p\u003e \u003cp\u003eDid Active Management Add Value? 243\u003c\/p\u003e \u003cp\u003eThe Selection ‘‘Alphas’’: Good News and Bad News 244\u003c\/p\u003e \u003cp\u003eIs There Also a Payoff from Actively Managing Pension Fund Costs? 247\u003c\/p\u003e \u003cp\u003eTwo Important Lessons Learned Thus Far 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART SEVEN Pensions, Politics, and the Investment Industry\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 37 Whither Security Analysis? 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBubble, Bubble, Toil and Trouble 253\u003c\/p\u003e \u003cp\u003eFortune Trashes Wall Street 254\u003c\/p\u003e \u003cp\u003eIs Better Regulation the Answer? 255\u003c\/p\u003e \u003cp\u003eReversing the Financial Food Chain 256\u003c\/p\u003e \u003cp\u003eWhat Is Security Analysis, Anyway? 257\u003c\/p\u003e \u003cp\u003eEven Good Security Analysis Needs Context 257\u003c\/p\u003e \u003cp\u003eEffective ‘‘Buy-Side’’ Structures 258\u003c\/p\u003e \u003cp\u003eIn Conclusion 259\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 38 Pension Funds and Investment Firms: Redefining the Relationship 260\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWho Are the Simbas of the Pension Investment Kingdom? 260\u003c\/p\u003e \u003cp\u003eThe Money Flood 261\u003c\/p\u003e \u003cp\u003eA Question of Governance 261\u003c\/p\u003e \u003cp\u003eEnter the Anthropologists 262\u003c\/p\u003e \u003cp\u003eA Call to ‘‘Excellence’’ 263\u003c\/p\u003e \u003cp\u003eWhat Do ‘‘Excellent’’ Pension Funds Look Like? 264\u003c\/p\u003e \u003cp\u003eA Supplier-Driven Market 265\u003c\/p\u003e \u003cp\u003eThe Tiny Equity Risk Premium Factor 265\u003c\/p\u003e \u003cp\u003e‘‘New Paradigm’’ Pension Funds: What Kind of Investment\u003c\/p\u003e \u003cp\u003eServices Do They Want? 267\u003c\/p\u003e \u003cp\u003eNew Pension Fund–Investment Firm Partnerships 270\u003c\/p\u003e \u003cp\u003eCould You Be a ‘‘New Paradigm’’ Player? 271\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 39 The New Pension Fund Management Paradigm: Feedback from Financial Analysts 272\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTest Driving the New Paradigm 272\u003c\/p\u003e \u003cp\u003ePension Politics and Economics 273\u003c\/p\u003e \u003cp\u003ePension Plan Governance 276\u003c\/p\u003e \u003cp\u003eThe New Pension Fund Management Paradigm 277\u003c\/p\u003e \u003cp\u003ePutting the Paradigm in Practice 278\u003c\/p\u003e \u003cp\u003ePerformance Measurement 281\u003c\/p\u003e \u003cp\u003eDid the Yardsticks Move Forward or Backward? 282\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 40 Reconnecting GAAP and Common Sense: The Cases of Stock Options and Pensions 283\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eClosing the Information GAAP 283\u003c\/p\u003e \u003cp\u003eWhen Are Employee Stock Options ‘‘Expenses’’? 284\u003c\/p\u003e \u003cp\u003eThe Common-Sense Solution in Action 285\u003c\/p\u003e \u003cp\u003eCurrent Pension Accounting Rules Defy Common Sense, Too 285\u003c\/p\u003e \u003cp\u003eSensible Pension Accounting Rules 287\u003c\/p\u003e \u003cp\u003eCommon Sense in Action 288\u003c\/p\u003e \u003cp\u003eCarpe Diem 289\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 41 Is Sri Bunk? 290\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSRI and Zen 290\u003c\/p\u003e \u003cp\u003eWhat Is ‘‘Socially Responsible Investing’’? 290\u003c\/p\u003e \u003cp\u003eA Slippery Slope? 291\u003c\/p\u003e \u003cp\u003eSustainable Investing 292\u003c\/p\u003e \u003cp\u003eAssessing the Sustainability of Dividend Growth 293\u003c\/p\u003e \u003cp\u003eFrom Saying to Doing: A Case Study 294\u003c\/p\u003e \u003cp\u003eRedefining the SRI Revolution 294\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 42 Alpha, Beta, Bafflegab: Investment Theory as Marketing Strategy 296\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGiving Alpha and Beta a Rest 296\u003c\/p\u003e \u003cp\u003eThe Beautiful Art of Language 297\u003c\/p\u003e \u003cp\u003eThe Myth of ‘‘Absolute-Return Investing’’ 298\u003c\/p\u003e \u003cp\u003eInvestment Theory with the End in Mind 298\u003c\/p\u003e \u003cp\u003eThe Critical Role of Fund Governance 299\u003c\/p\u003e \u003cp\u003ePension Revolution 300\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 43 The Turner Pensions Commission Report: A Blueprint for Global Pension Reform 302\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePension Wisdom from the United Kingdom 302\u003c\/p\u003e \u003cp\u003eTurner’s Recommendations 303\u003c\/p\u003e \u003cp\u003eThe Power of Integrative Thinking 303\u003c\/p\u003e \u003cp\u003eBlueprint for Global Pension Reform 304\u003c\/p\u003e \u003cp\u003eNPSS Governance, Management, and Investment\u003c\/p\u003e \u003cp\u003eOptions 307\u003c\/p\u003e \u003cp\u003eMoving Forward 308\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 44 More Pension Wisdom from Europe: The Geneva Report on Pension Reform 309\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEight Hands, Four Economists, and One Point of View 309\u003c\/p\u003e \u003cp\u003ePowerful Pension Policy Implications 310\u003c\/p\u003e \u003cp\u003eLabor Markets and Human Capital 311\u003c\/p\u003e \u003cp\u003eOptimal Risk Sharing 312\u003c\/p\u003e \u003cp\u003eOptimal Pension Fund Organizations 313\u003c\/p\u003e \u003cp\u003eA Powerful Pension Vision 314\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART EIGHT The Case of PERS\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 45 PERS and the Pension Revolution: Active Participant . . . or Passive Bystander? 317\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAlyson Green’s New Job 317\u003c\/p\u003e \u003cp\u003eHistory of Workplace Pensions 319\u003c\/p\u003e \u003cp\u003eThe 1976 to 2005 Period 319\u003c\/p\u003e \u003cp\u003eGovernance–Organizational Issues at PERS 320\u003c\/p\u003e \u003cp\u003eFinance–Investment Beliefs 321\u003c\/p\u003e \u003cp\u003ePension Contract–Risk Issues at PERS 321\u003c\/p\u003e \u003cp\u003eIs a Higher Contribution Rate the Answer? 323\u003c\/p\u003e \u003cp\u003eMore Drastic Action Indicated 324\u003c\/p\u003e \u003cp\u003eSpreading the Pain Evenly 326\u003c\/p\u003e \u003cp\u003eIs Risk-Sharing an Essential Pension Plan Feature? 327\u003c\/p\u003e \u003cp\u003eGetting from Here to There 329\u003c\/p\u003e \u003cp\u003eDevising an Action Plan 329\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 46 Advice for Alyson Green: How PERS Can Join the Pension Revolution 331\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCase Discussion Summary from October 25, 2005 331\u003c\/p\u003e \u003cp\u003eThe PERS Situation 332\u003c\/p\u003e \u003cp\u003eThe PERS Debate 332\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIn Conclusion: A Call to Arms 335\u003c\/b\u003e\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":48864622936407,"sku":"9780470087237","price":39.38,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780470087237.jpg?v=1722272775","url":"https:\/\/bookcurl.com\/products\/pension-revolution-9780470087237","provider":"Book Curl","version":"1.0","type":"link"}