Winning the Institutional Investing Race [electronic resource] : A Guide for Directors and Executives /
Bunn, Michael.author.
Campbell, Zack.author.
The complexity of investments continues to grow, and institutional pools of capital from endowments to pension funds are suffering from too much risk and not enough return. Yet managing these investments and creating and implementing governance structures are seldom an integral part of the organization’s core mission or its operations. "That’s the way it has always been," say many directors and executives. As a result, a board of directors or investment committee often believes it needs to make all the decisions--or outsource money management and hope for the best. As Winning the Institutional Investing Race: A Guide for Directors and Executives makes clear, that sentiment is a big mistake that can lead to poor returns, reduced capital to employ on behalf of the organizational mission, and even charges of malfeasance on the part of directors. Authors Michael Bunn and Zack Campbell, who advise companies and institutions on best practices in institutional investment, are determined to help institutions and companies learn to manage their capital funds like the real businesses they are. This hands-on book will show you: The importance of governance in creating and overseeing investment policy The roles and responsibilities of key stakeholders, especially board members How to construct an effective investment policy statement An overview of the four primary governance models available to trustees and the pros/cons of each How to work with fund managers, in house or out, to get the highest returns possible Besides governance, this book covers a wide array of investment topics—modern portfolio theory, risk application, investment manager evaluation and manager search, asset allocation, and diversification, among others—while introducing a new and successful approach to managing investment portfolios. The goal is to provide a grounding in investing for those involved in making financial decisions at the board level. As the authors make clear, it is not possible just to beat the averages but to do so consistently. Winning the Institutional Investing Race: A Guide for Directors and Executives offers a healthy rethinking of investment management and governance for any organization or board that oversees institutional investments and manages those making investment decisions. Most important, it shows how directors and managers can maintain their fiduciary responsibilities to the organizations they serve while maximizing investment returns.
""Contents""; ""About the Authors""; ""Acknowledgments""; ""Preface""; ""Introduction""; ""Part I: Governance""; ""Chapter 1: Procrustes Rules""; ""Chapter 2: Fiduciary Responsibilities""; ""Loyalty""; ""Skill""; ""Care""; ""Prudence""; ""Diligence""; ""Chapter 3: Ethics""; ""Chapter 4: Essentials of Governance""; ""Board""; ""Investment Committee""; ""CFO / Treasurer""; ""Internal Investment Office""; ""Investment Consultant""; ""Contracted Investment Office""; ""Chapter 5: The Governance Document""; ""Return Objectives""; ""Risk Tolerance""; ""Asset Allocation""; ""Rebalancing Protocol""
""Chapter 13: Manager Search""""Chapter 14: The Right Way to View Asset Allocation""; ""Chapter 15: What Diversification Really Means""; ""Chapter 16: Asset Allocation: The Process""; ""Rethinking the process""; ""Conclusion""; ""Chapter 17: Portfolio Evaluation""; ""Chapter 18: When You Donâ€?t Know What to Do""; ""Chapter 19: The Nature of Fees""; ""Chapter 20: Investment Myths""; ""Asset Allocation""; ""Index""; ""Alpha""; ""Best Execution""; ""Fees""; ""Return equals risk""; ""Chapter 21: Useful Statistics""; ""Standard Deviation""; ""Returns""; ""Average Return""
""Compound (Annualized) Return""""Cumulative Return""; ""Internal Rate of Return (IRR)""; ""Time-Weighted Return""; ""Money-Weighted Return (Dollar-Weighted Return)""; ""Alpha""; ""Beta""; ""Up-Market Capture""; ""Down-Market Capture""; ""Sharpe Ratio""; ""R-Squared""; ""Tracking Error""; ""Information Ratio""; ""Volume-Weighted Average Price""; ""One last thought on statistics""; ""Index""; ""Other Apress Business Titles You Will Find Useful""
Includes index.
The complexity of investments continues to grow, and institutional pools of capital from endowments to pension funds are suffering from too much risk and not enough return. Yet managing these investments and creating and implementing governance structures are seldom an integral part of the organization’s core mission or its operations. "That’s the way it has always been," say many directors and executives. As a result, a board of directors or investment committee often believes it needs to make all the decisions--or outsource money management and hope for the best. As Winning the Institutional Investing Race: A Guide for Directors and Executives makes clear, that sentiment is a big mistake that can lead to poor returns, reduced capital to employ on behalf of the organizational mission, and even charges of malfeasance on the part of directors. Authors Michael Bunn and Zack Campbell, who advise companies and institutions on best practices in institutional investment, are determined to help institutions and companies learn to manage their capital funds like the real businesses they are. This hands-on book will show you: The importance of governance in creating and overseeing investment policy The roles and responsibilities of key stakeholders, especially board members How to construct an effective investment policy statement An overview of the four primary governance models available to trustees and the pros/cons of each How to work with fund managers, in house or out, to get the highest returns possible Besides governance, this book covers a wide array of investment topics—modern portfolio theory, risk application, investment manager evaluation and manager search, asset allocation, and diversification, among others—while introducing a new and successful approach to managing investment portfolios. The goal is to provide a grounding in investing for those involved in making financial decisions at the board level. As the authors make clear, it is not possible just to beat the averages but to do so consistently. Winning the Institutional Investing Race: A Guide for Directors and Executives offers a healthy rethinking of investment management and governance for any organization or board that oversees institutional investments and manages those making investment decisions. Most important, it shows how directors and managers can maintain their fiduciary responsibilities to the organizations they serve while maximizing investment returns.
Business.
Management science.
Business and Management, general.