Pension Fund Investment Management


Written by an esteemed panel of contributors, Pension Fund Investment Management covers the basics as well as the latest on pension fund governance, operations, and value creation. Addressing pension fund investment issues, this book covers topics concerning plan sponsors, pension consultants and corporate finance professionals and includes information on fund governance, operation and value creation and explores investment styles and asset allocation decisions. Every investment professional involved with the management of pension funds will embrace this wide-ranging handbook.

Some of the topics covered in this book include:

  1. Setting investment policy

  2. The sponsor's view or risk

  3. Internal versus external fund management

  4. Selection of money managers

  5. Manager fees and transaction costs

  6. The role of fixed-income securities in plan portfolios

  7. The benefits of indexing

Table of Contents

Section I: Investment Policy, Strategies, and Asset Allocation

  1. Pension Fund Governance, Operations, and Value Creation (K. Ambachtsheer)

  2. Investment Policy: The Missing Link (J. Bailey)

Appendix: Illustration of an Investment Policy (M. Menssen)

  1. Organizing Internal Investment Management (G. Allen and T. Coggin)

  2. Managing the Asset Mix: Decisions and Consequences (R. Arnott)

  3. The Evolving Role of the Pension Investment Consultant (H. Marmer)

  4. Investment Styles, Stock Market Cycles, Investor Expectations, and Pension Fund Performance (W. Bauman and R. Miller)

  5. Strategic Currency Management for U.S. Pension Funds (J. Braccia)

  6. The Role of Completion Funds in Equity Style Management (C. Campisano and M. Nederlof)

  7. Computer-Aided Pension Investment Decision Making (R. Surz)

  8. A Plan Sponsor's Guide to Commissions (A. Biller)

Section II: Benchmark Selection

  1. Benchmark Portfolios: The Sponsor's View (D. Peifer)

  2. Return-Based Style Analysis (S. Hardy)

  3. Equity Style Benchmarks for Fund Analysis (M. Compton)

Section III: Asset/Liability Management

  1. Pension Liabilities: The True Objective (R. Ryan)

  2. A Practical Approach to Integrating Pension Finance with Corporate Finance (M. Sloan)

  3. Measures of Risk for Portfolio Optimization and Asset/Liability Modeling (T. Philips)

Section IV: Manager Selection and Compensation

  1. Managing Firmwide Risk for Pension Funds (L. Gibson, III)

  2. Money Manager Selection: A Top-Down Approach (V. Kutler)

  3. Selecting an International Investment Manager (M. Gorodess)

  4. Establishing Performance-Related Termination Thresholds for Investment Management (D. Hammond)