Description
Book SynopsisComprehensive coverage of what it takes to be a responsible member of an investment committee In a clear, organized, and easy-to-understand manner, this handbook explains the responsibilities and expectations of investment committee fiduciaries for pension funds, endowment funds, and foundations.
Table of ContentsAcknowledgments.
Introduction.
Organization of this Book.
CHAPTER 1: The Investment Committee.
Standards to Meet.
Committee Organization and Functions.
Interaction of Committee and Adviser.
Social Investing.
In Short.
APPENDIX 1: Example of an Investment Committee’s Operating Policies.
CHAPTER 2: Risk, Return, and Correlation.
Return.
Risk.
Correlation.
Risk-Adjusted Returns.
Derivatives—A Boon or a Different Four-Letter Word?
In Short.
CHAPTER 3: Setting Investment Policies.
Time Horizon, Risk, and Return.
Policy Asset Allocation.
Preparing a Statement of Investment Policies.
In Short.
CHAPTER 4: Asset Allocation.
Characteristics of an Asset Class.
Asset Classes.
Putting It All Together.
In Short.
CHAPTER 5: Alternative Asset Classes.
Liquid Alternative Assets.
Illiquid Investments.
Private Asset Classes.
In Short.
CHAPTER 6: Selecting and Monitoring Investment Managers.
Three Basic Approaches.
Criteria for Hiring and Retaining Managers.
Hiring Managers.
Retaining Managers.
In Short.
CHAPTER 7: The Custodian.
Custodial Reporting.
Management Information.
In Short.
CHAPTER 8: Evaluating an Investment Fund’s Organization.
Investment Objectives.
Asset Allocation.
The Fiduciary Committee.
The Adviser.
Investment Managers.
CHAPTER 9: Structure of an Endowment Fund.
The Total Return, or Imputed Income, Approach.
“Owners” of the Endowment Fund.
In Short.
APPENDIX 9: The Total Return or Imputed Income Method.
CHAPTER 10: What’s Different about Pension Funds?
Pension Plan Liabilities.
Investment Implications.
In Short.
CHAPTER 11: Once Again.
Glossary.
Bibliography.
Index.
About the Author.
