{"product_id":"fiduciary-management-isbn-9780470171035","title":"Fiduciary Management","description":"\u003ci\u003eFiduciary Management\u003c\/i\u003e offers an in-depth explanation of every facet of this fast-growing approach to organizing the management of an institutional investment portfolio. Expert author Anton van Nunen begins by outlining the historic shift that has brought this strategy to the attention of the investment community and quickly moves on to illustrate fiduciary management in practice; giving advice in terms of asset-liability modeling and financial markets, constructing portfolios, selecting and overseeing investment managers, benchmarking and performance measurement, and reporting. \u003cp\u003eForeword xi\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Pendulum Swings Back in Asset Management 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Forces of History 1\u003c\/p\u003e \u003cp\u003eThe Rise of Modern Portfolio Theory 3\u003c\/p\u003e \u003cp\u003eSupport for Shares 4\u003c\/p\u003e \u003cp\u003eThe New Paradigm 6\u003c\/p\u003e \u003cp\u003eThe Rise of Indexing 9\u003c\/p\u003e \u003cp\u003eDiscontent with the Paradigm 10\u003c\/p\u003e \u003cp\u003eThe Need for Fiduciary Managers 12\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Pension Plans: The Principal Setting for Fiduciary Management 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Historical Idea of Pensions 15\u003c\/p\u003e \u003cp\u003eA Patchwork of Pension Provisions 18\u003c\/p\u003e \u003cp\u003eOrganization and Regulation of the Pension System in several OECD Countries 23\u003c\/p\u003e \u003cp\u003eDenmark 23\u003c\/p\u003e \u003cp\u003eFrance 25\u003c\/p\u003e \u003cp\u003eGermany 26\u003c\/p\u003e \u003cp\u003eThe Netherlands 27\u003c\/p\u003e \u003cp\u003eMarking to Market 28\u003c\/p\u003e \u003cp\u003eSufficiency Test 29\u003c\/p\u003e \u003cp\u003eSweden 30\u003c\/p\u003e \u003cp\u003eSwitzerland 31\u003c\/p\u003e \u003cp\u003eUnited Kingdom 31\u003c\/p\u003e \u003cp\u003eThe United States 32\u003c\/p\u003e \u003cp\u003eAustralia 33\u003c\/p\u003e \u003cp\u003eSimilarities and Differences 34\u003c\/p\u003e \u003cp\u003eCommonalities on the Asset Side 36\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Role of the Fiduciary Manager as Chief Advisor 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Asset-Liability Study 39\u003c\/p\u003e \u003cp\u003eThinking through Risk and Return 41\u003c\/p\u003e \u003cp\u003ePortfolio Construction 42\u003c\/p\u003e \u003cp\u003eSelecting and Overseeing Investment Managers 43\u003c\/p\u003e \u003cp\u003eMeasuring and Benchmarking 43\u003c\/p\u003e \u003cp\u003eEducation 44\u003c\/p\u003e \u003cp\u003eThe Trusted Counselor, the Fellow Fiduciary 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Shaping the Fundamental Investment Policies 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLiability-Driven Investments 51\u003c\/p\u003e \u003cp\u003eChoosing an Active Investment Policy 52\u003c\/p\u003e \u003cp\u003eIntegrating Active Policy in the Overall Portfolio 55\u003c\/p\u003e \u003cp\u003eCompletion Account as a Necessary Adjunct to Active Policy 58\u003c\/p\u003e \u003cp\u003eThe Fiduciary Platform to Integrate Active Policy in the Overall Investment Portfolio 59\u003c\/p\u003e \u003cp\u003eA Special Case: Bridging the Duration Gap 67\u003c\/p\u003e \u003cp\u003eWhat a Fiduciary Manager’s Report Looks Like 68\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Asset-Liability Modeling and the Fiduciary Manager 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Role of the Fiduciary Manager 74\u003c\/p\u003e \u003cp\u003eThe Asset-Liability Model (ALM) 75\u003c\/p\u003e \u003cp\u003ePolicy Instruments Used in Asset-Liability Modeling 78\u003c\/p\u003e \u003cp\u003eCalculations to Cope with Uncertainty 80\u003c\/p\u003e \u003cp\u003eThe Crucial Role of ALM 81\u003c\/p\u003e \u003cp\u003eAsset-Liability Modeling in Practice 82\u003c\/p\u003e \u003cp\u003ePrognosis of Future Reserves without Policy Changes 84\u003c\/p\u003e \u003cp\u003eFuture Financial Situation with Flexible Premium Levels under the Regime of a Fixed Compound Rate 85\u003c\/p\u003e \u003cp\u003eFuture Financial Situation with Flexible Premium Levels under the Regime of Compound Rates Equal to Market Interest Rates 88\u003c\/p\u003e \u003cp\u003eFuture Financial Situation with Changes in Investment Policy 100\u003c\/p\u003e \u003cp\u003ePolicy Changes 102\u003c\/p\u003e \u003cp\u003eWhere Does Fiduciary Management Fit In? 102\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Fiduciary Management In Practice—Portfolio Construction 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefining Appropriate Asset Classes 106\u003c\/p\u003e \u003cp\u003eHedge Funds: Weighing the ‘‘New’’ Alternative 106\u003c\/p\u003e \u003cp\u003eBurrowing In: Defining Sub-Allocations 109\u003c\/p\u003e \u003cp\u003eThinking about Style 111\u003c\/p\u003e \u003cp\u003eApportioning the Fixed Income Portfolio 112\u003c\/p\u003e \u003cp\u003eMeasure for Measure 112\u003c\/p\u003e \u003cp\u003eFormulating Mandates for Managers 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Horses For Courses—Selecting And Overseeing Investment Managers 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCreating the Beauty Parade 116\u003c\/p\u003e \u003cp\u003eInvestment Performance 117\u003c\/p\u003e \u003cp\u003eInvestment Process and Philosophy 117\u003c\/p\u003e \u003cp\u003eInvestment People 118\u003c\/p\u003e \u003cp\u003eOperational Risk 119\u003c\/p\u003e \u003cp\u003eManaging the Beauty Parade 121\u003c\/p\u003e \u003cp\u003eManaging the Transition 122\u003c\/p\u003e \u003cp\u003eOverseeing the Managers 123\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Performance Measurement and Benchmarking 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Has Benchmarking Grown More Important? 128\u003c\/p\u003e \u003cp\u003eThe Use of Different Types of Benchmarks 131\u003c\/p\u003e \u003cp\u003eLiability-Driven Benchmarks 133\u003c\/p\u003e \u003cp\u003eStrategic Benchmarks 134\u003c\/p\u003e \u003cp\u003eFixed Income 136\u003c\/p\u003e \u003cp\u003eEquities 137\u003c\/p\u003e \u003cp\u003eReal Estate 139\u003c\/p\u003e \u003cp\u003eDetailed Benchmarks in the Context of Active Investment Policy 140\u003c\/p\u003e \u003cp\u003eActive Overlay Management 143\u003c\/p\u003e \u003cp\u003eRebalancing 144\u003c\/p\u003e \u003cp\u003eMeasurement of Active Policy 145\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 The Fiduciary Manager Experience in the Netherlands and Beyond 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChanges in Investment Policy 152\u003c\/p\u003e \u003cp\u003eChanges in the Role of a Fund’s Investment Committee 153\u003c\/p\u003e \u003cp\u003eChanges in the Breadth and Depth of Discussions with Asset Managers 153\u003c\/p\u003e \u003cp\u003eChanges in the Communication Process 154\u003c\/p\u003e \u003cp\u003eChanges in the Level and Structure of Costs 155\u003c\/p\u003e \u003cp\u003eChanges in the Importance of the Custodian 156\u003c\/p\u003e \u003cp\u003eOverseeing the Fiduciary 157\u003c\/p\u003e \u003cp\u003eFuture Developments of the Market for Fiduciary Services 159\u003c\/p\u003e \u003cp\u003eBeyond the Netherlands 165\u003c\/p\u003e \u003cp\u003eFiduciary Management Plus 165\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Summing Up Fiduciary Management: What It Is and Is Not 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGoals, Policy, and Responsibilities 167\u003c\/p\u003e \u003cp\u003eFiduciary Management Can Enhance Productivity 173\u003c\/p\u003e \u003cp\u003eWhat Fiduciary Management Is Not: A Simplification 174\u003c\/p\u003e \u003cp\u003eComparisons with Other Investment Management Models 175\u003c\/p\u003e \u003cp\u003eThe Concept’s Claims 176\u003c\/p\u003e \u003cp\u003eAppendix: Suppliers of Fiduciary Services 181\u003c\/p\u003e \u003cp\u003eNotes 259\u003c\/p\u003e \u003cp\u003eBibliography 265\u003c\/p\u003e \u003cp\u003eIndex 269\u003c\/p\u003e \"Its key message is that fiduciary management is an idea whose time has come…Nunen provides good case study examples\". (\u003ci\u003eInvestment \u0026amp; Pensions Europe,\u003c\/i\u003e April 2008) \u003cb\u003eAnton van Nunen, PhD,\u003c\/b\u003e has headed Van Nunen \u0026amp; Partners, a consulting firm serving both institutional and individual investors, since 1998. His clients have included a number of major institutional investors in the Netherlands and beyond. Van Nunen has not only spelled out the concepts of fiduciary management, he has also implemented them at such institutions as VGZ-IZA, a major Dutch health insurance company, the Campina Pension Fund, and the Yarden Insurance Company. Van Nunen earned a PhD in economics from Tilburg University, where he went on to spend twelve years as an assistant professor.  \u003cp\u003eFiduciary management is an increasingly popular way of organizing the management of sizable investment portfolios. Much of the appeal for the concepts underpinning this idea is a response to the shortcomings that many investors see in the current approach to managinginstitutional portfolios—especially pension funds.\u003c\/p\u003e \u003cp\u003eAs the twenty-first century began, there was significant discontent among plan sponsors and other institutions regarding the prevailing investment management structure: too many people had a role while no one had overall responsibility. Fiduciary management came into being in response to such problems. Seeking to reunite expertise and responsibility, fiduciary management tries to ensure that those who oversee managers and consultants not only have the expertise to do this job, but also have close enough ties to the plan sponsor to do this job effectively.\u003c\/p\u003e \u003cp\u003eFiduciary Management: Blueprint for Pension Fund Excellence offers an in-depth explanation of every facet of this fast-growing approach to organizing the management of an institutional investment portfolio. Expert author Anton van Nunen begins by outlining the historic shift that has brought this strategy to the attention of the investment community, explaining the relationship between the theory and pension plans. Pension plan managers first set the scene for fiduciary management by limiting the number of players who were responsible for the funds. The theory soon spread beyond just pension funds to attract the interest of those who were responsible for all types of institutional portfolios. Van Nunen defines what is and what is not fiduciary management, details the principal functions of a fiduciary manager, and outlines the wide-ranging benefits of fiduciary management. Then he illustrates fiduciary management in practice, giving advice in terms of asset-liability modeling and financial markets, constructing portfolios, selecting and overseeing investment managers, benchmarking and measuring performance, and reporting.\u003c\/p\u003e \u003cp\u003eFiduciary management is a key mechanism for ensuring that a pension fund is able to have timely responses to changing market conditions while continuing to be focused on enduring investment principles. This book will help pension fund managers as well as all financial professionals to understand every aspect of this increasingly important concept.\u003c\/p\u003e  \u003cb\u003e\u003ci\u003eFiduciary Management\u003c\/i\u003e\u003c\/b\u003e  \u003cp\u003e\"Dr. van Nunen goes much further than to discuss governance. He discusses all aspects of what should be done in making a defined benefit plan successful, and expresses his views forthrightly. And he not only traces the history of pension arrangements, but supplements it with a fascinating chapter comparing arrangements around what I think of as the funded world. His ideas are relevant to fiduciaries around the funded world ... I hope you find his book as interesting, engaging, and useful as I did.\"\u003cbr\u003e —From the Foreword by Don Ezra, Director of Investment Strategy, Russell Investment Group, and coauthor of Pension Fund Excellence\u003c\/p\u003e \u003cp\u003e\"Many pension funds are too small to ever become cost-effective pension delivery organizations. This book offers a solution to the serious 'too small' problem.\"\u003cbr\u003e —Keith Ambachtsheer, Director of the Rotman International Centre for Pension Management, University of Toronto, founder of KPA Advisory Services Ltd., and author of Pension Revolution\u003c\/p\u003e \u003cp\u003e\"The topic of fiduciary management is now at the leading edge of assets and pensions management, which makes this book extremely timely. It manages to distill a wealth of practice and experience into a short and lucid discussion of the topic. A particular pleasure is that it avoids the trap of pages of obscure and usually irrelevant mathematics. For the many not following into this field, this is a 'must read.'\"\u003cbr\u003e —Con Keating, principal of The Finance Development Centre Ltd., London\u003c\/p\u003e \u003cp\u003e\"As is readily apparent from this book, Dr. van Nunen has thought long and hard about fiduciarymanagement and is one of the world's leading experts. He comprehensively describes how fiduciary management can improve plan governance, particularly as it relates to manager selection and the management of surplus risk. The book does an excellent job explaining how fiduciary management provides a robust framework and clear separation of duties for investment committee members trying to navigate an increasingly complex investment landscape.\"\u003cbr\u003e —Bob Litterman, Managing Director and Head of Goldman Sachs Asset Management's Quantitative Resources Group, and author of Modern Investment Management: An Equilibrium Approach\u003c\/p\u003e \u003cp\u003e\"I found the book an interesting, engaging, and stimulating read. Fiduciary management is a very timely topic and is especially relevant for smaller pension plans that may lack in-house expertise. Such plans would benefit from outside help. The book covers a lot of ground. Dr. van Nunen shares with us his valuable insights and experience in his discussion of the pitfalls and complexities of asset management. Anyone who manages a defined benefit pension plan can benefit from reading this book.\"\u003cbr\u003e —Josef Lakonishok, CEO and CIO of LSV Asset Management\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989204975845,"sku":"NP9780470171035","price":75.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470171035.jpg?v=1761783200","url":"https:\/\/k12savings.com\/products\/fiduciary-management-isbn-9780470171035","provider":"K12savings","version":"1.0","type":"link"}