{"product_id":"how-to-select-investment-managers-and-evaluate-performance-isbn-9780470042557","title":"How to Select Investment Managers and Evaluate Performance","description":"An informative guide to selecting and evaluating external investment professionals\u003cbr\u003e \u003cbr\u003e This book-one of the very few of its kind-is an invaluable aid to trustees of pension plans, endowments, and trusts who seek to chart and navigate courses for governing and overseeing the investment of the trillions of dollars under their care. It covers many aspects of this essential endeavor, including return measures, fixed income and duration, manager searches, committee meetings, and much more.\u003cbr\u003e \u003cbr\u003e G. Timothy Haight (Atherton, CA) is President of Menlo College in Silicon Valley. Stephen O. Morrell, PhD (Coral Springs, FL) is Professor at Andreas School of Business of Barry University. Glenn Ross (Baltimore, MD) is a Managing Director and cofounder of Archstone Portfolio Solutions. \u003cp\u003e\u003cbr\u003ePreface ix\u003c\/p\u003e \u003cp\u003eAbout the Authors xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Investment Sponsors 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Investment Committee 4\u003c\/p\u003e \u003cp\u003eThe Variety of Investment Sponsors 7\u003c\/p\u003e \u003cp\u003eTaxable Investment Sponsors 24\u003c\/p\u003e \u003cp\u003eSummary 29\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Investment Policy Statement 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestment Philosophy and Goals 31\u003c\/p\u003e \u003cp\u003eInvestment Return Objectives 32\u003c\/p\u003e \u003cp\u003eRisk Tolerances 32\u003c\/p\u003e \u003cp\u003eConstraints 33\u003c\/p\u003e \u003cp\u003eInvestment Strategy 33\u003c\/p\u003e \u003cp\u003eIn-House or Outside Manager 34\u003c\/p\u003e \u003cp\u003eInvestment Policy 34\u003c\/p\u003e \u003cp\u003eSecurities Types and Risk Characteristics 35\u003c\/p\u003e \u003cp\u003eAsset Allocation Guidelines 39\u003c\/p\u003e \u003cp\u003eEvaluation of Performance 41\u003c\/p\u003e \u003cp\u003eBenchmark Portfolios 51\u003c\/p\u003e \u003cp\u003ePeriodic Review 52\u003c\/p\u003e \u003cp\u003eSummary 53\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Investment Overview 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCapital Appreciation versus Current Income 55\u003c\/p\u003e \u003cp\u003eActive versus Passive Investment Approaches 57\u003c\/p\u003e \u003cp\u003eInvestment Styles-Equity Managers 57\u003c\/p\u003e \u003cp\u003eInternational Investing 65\u003c\/p\u003e \u003cp\u003eInvestment Styles-Fixed Income Managers 65\u003c\/p\u003e \u003cp\u003eSummary 68\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Alternative Investment Vehicles 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHybrid Securities 72\u003c\/p\u003e \u003cp\u003eDerivative Contracts 75\u003c\/p\u003e \u003cp\u003eInternational Investment Vehicles 81\u003c\/p\u003e \u003cp\u003eReal Estate Investment Vehicles 91\u003c\/p\u003e \u003cp\u003eInvestment Vehicles for Accredited Investors 93\u003c\/p\u003e \u003cp\u003eCommodities and Collectibles 102\u003c\/p\u003e \u003cp\u003eSummary 104\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 5 Return Measures and Reporting Techniques 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDollar-Weighted Rate of Return 105\u003c\/p\u003e \u003cp\u003eTime-Weighted Rate of Return 108\u003c\/p\u003e \u003cp\u003eAnnualized Rates of Return 110\u003c\/p\u003e \u003cp\u003eGeometric Mean 111\u003c\/p\u003e \u003cp\u003eTotal Return and its Components 112\u003c\/p\u003e \u003cp\u003eCompound Growth 115\u003c\/p\u003e \u003cp\u003eSummary 118\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 6 Return-Risk Measurement 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReturn Relative 119\u003c\/p\u003e \u003cp\u003eStandard Deviation 121\u003c\/p\u003e \u003cp\u003ePortfolio Risk Measure 124\u003c\/p\u003e \u003cp\u003eScatter Diagram 127\u003c\/p\u003e \u003cp\u003eCoefficient of Variation 128\u003c\/p\u003e \u003cp\u003eRegression Analysis 129\u003c\/p\u003e \u003cp\u003ePortfolio Size and Diversification Levels 131\u003c\/p\u003e \u003cp\u003eRegression Analysis of Fund I 132\u003c\/p\u003e \u003cp\u003eAdditional Performance Indexes 133\u003c\/p\u003e \u003cp\u003eSummary 134\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 7 Portfolio Performance Evaluation 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePerformance Results 138\u003c\/p\u003e \u003cp\u003eComposite Index 139\u003c\/p\u003e \u003cp\u003eReturn Risk Analysis 140\u003c\/p\u003e \u003cp\u003eUniverse Comparison 141\u003c\/p\u003e \u003cp\u003eEvaluating the Asset Allocation Decision 143\u003c\/p\u003e \u003cp\u003eSummary 155\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 8 Equity Performance Evaluation 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEquity Performance Criteria 158\u003c\/p\u003e \u003cp\u003eSector Analysis 159\u003c\/p\u003e \u003cp\u003eReturn-Risk Comparison 163\u003c\/p\u003e \u003cp\u003eMarket Characteristics 164\u003c\/p\u003e \u003cp\u003eAttribution Analysis 169\u003c\/p\u003e \u003cp\u003eSummary 171\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 9 Fixed Income Performance Evaluation 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAsset Allocation Ranges and Anticipated Contributions 174\u003c\/p\u003e \u003cp\u003eIssuers of Fixed Income Securities 174\u003c\/p\u003e \u003cp\u003eBond Indexes 176\u003c\/p\u003e \u003cp\u003eBond Prices and Yields 177\u003c\/p\u003e \u003cp\u003eTerm Structure of Interest Rates 180\u003c\/p\u003e \u003cp\u003eQuality of Fixed Income Securities 181\u003c\/p\u003e \u003cp\u003eCredit Risk 181\u003c\/p\u003e \u003cp\u003eInterest Rate Risk 184\u003c\/p\u003e \u003cp\u003eDuration 186\u003c\/p\u003e \u003cp\u003eConvexity 189\u003c\/p\u003e \u003cp\u003eMaturity Characteristics 191\u003c\/p\u003e \u003cp\u003eReturn Analysis 191\u003c\/p\u003e \u003cp\u003eCFA Institute Standards 195\u003c\/p\u003e \u003cp\u003eFixed Income Management Styles 196\u003c\/p\u003e \u003cp\u003ePassive Fixed Income Management 196\u003c\/p\u003e \u003cp\u003eActive Fixed Income Management 198\u003c\/p\u003e \u003cp\u003ePerformance Analysis 199\u003c\/p\u003e \u003cp\u003eSummary 202\u003cbr\u003e\u003cbr\u003e\u003cb\u003eCHAPTER 10 Investment Companies as Investment Vehicles 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestment Companies 205\u003c\/p\u003e \u003cp\u003eRegulation of Investment Companies 207\u003c\/p\u003e \u003cp\u003eTypes of Investment Companies 208\u003c\/p\u003e \u003cp\u003eSelecting Mutual Funds 215\u003c\/p\u003e \u003cp\u003ePerformance Evaluation 216\u003c\/p\u003e \u003cp\u003eSummary 217\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 11 Investment Manager Search Process 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSearch Committee 219\u003c\/p\u003e \u003cp\u003eEstablishing Goals 220\u003c\/p\u003e \u003cp\u003eNumber of Managers 220\u003c\/p\u003e \u003cp\u003eCandidate Identification 222\u003c\/p\u003e \u003cp\u003eManagement and Related Fees 223\u003c\/p\u003e \u003cp\u003eFirm Size and Ownership 225\u003c\/p\u003e \u003cp\u003eRequest for Proposals (RFP) 225\u003c\/p\u003e \u003cp\u003eScreening of Candidates 230\u003c\/p\u003e \u003cp\u003eCandidates Presentations 234\u003c\/p\u003e \u003cp\u003eVerification and Reference Checking 236\u003c\/p\u003e \u003cp\u003eCost of Switching 239\u003c\/p\u003e \u003cp\u003eAdministration of Change 240\u003c\/p\u003e \u003cp\u003eSummary 240\u003cbr\u003e\u003cbr\u003e\u003cb\u003eChapter 12 Conducting Investment Committee Meetings 243\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMeeting Preparations 243\u003c\/p\u003e \u003cp\u003eAgenda and Meeting Materials 245\u003c\/p\u003e \u003cp\u003eSetting the Agenda 245\u003c\/p\u003e \u003cp\u003eResponsibilities of the Chairperson 246\u003c\/p\u003e \u003cp\u003eInvestment Consulting Services 246\u003c\/p\u003e \u003cp\u003eInvestment Performance Review and Outlook 247\u003c\/p\u003e \u003cp\u003eOld Business 250\u003c\/p\u003e \u003cp\u003eNew Business 251\u003c\/p\u003e \u003cp\u003eSummary 251\u003c\/p\u003e \u003cp\u003eIndex 809\u003c\/p\u003e  \"These guys know how to check their facts.\"  (\u003ci\u003eAlbourne Village - village.albourne.com\u003c\/i\u003e, Tuesday 22nd January 2008)  \u003cp\u003e\"...this useful guide for professionals is timely.\"  (\u003ci\u003ePensions World\u003c\/i\u003e, Ferbruary 2008)\u003c\/p\u003e \u003cp\u003e\u003cb\u003eG. Timothy Haight\u003c\/b\u003e, DBA, is the President of Menlo College, Chairman of the Board of Commonwealth Business Bank, and a member of the Board of Advisors of St. Cloud Capital Partners, LLC. He also serves as a member of Southern California Edison's Nuclear Power Decommissioning Fund Committee. Dr. Haight earned a Doctorate in Business Administration (DBA) with a major in business finance and investments from George Washington University. He received his MBA and BS degrees from the University of Dayton.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eDr. Stephen O. Morrell\u003c\/b\u003e is Professor of Economics and Finance in the Andreas School of Business of Barry University. He has been a visiting professor at the Monterey Institute of Technology and the Georg-Simon-Ohm University in Nuremberg, Germany. Dr. Morrell also serves as a consultant specializing in portfolio strategies for endowment funds, and has served as senior vice president and chief economist for Southeast Banking Corporation; as a financial economist for the Federal Reserve System; and as chairman of the Board of Directors of First State Bank of Ft. Lauderdale, Florida. Dr. Morrell received his BS degree from Virginia Commonwealth University, and his MA and PhD degrees in economics from Virginia Polytechnic Institute.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eGlenn E. Ross\u003c\/b\u003e serves as a member of Towson University's College of Business and Economics Board, and its Alumni Board, and has been an adjunct professor in Towson University's Finance Department. Mr. Ross is President of the Board of Directors of the Albert P. Close Foundation and is a member of the Board of Directors of the Upper Chesapeake Health System Foundation. Mr. Ross earned his undergraduate degree from Towson University and his MBA at Loyola College in Baltimore. Mr. Ross is a Registered Investment Advisor Representative with the SEC.\u003c\/p\u003e  \u003cp\u003ePeople charged with the governance and oversight of pension plan, endowment, and trust investments for corporations, nonprofit institutions, and state and local governments face substantial and varied responsibilities. The processes of developing investment policies and strategies; selecting investment managers to implement policies and strategies; and evaluating investment manager performance are critical to success. All too often, however, the individuals with ultimate responsibility for selecting investment professionals and evaluating their performance—pension plan trustees, endowment fund board members, and investment committee members of boards—lack even the most basic knowledge and understanding of the processes and criteria involved in selecting investment professionals and evaluating their performance.\u003c\/p\u003e \u003cp\u003eHow to Select Investment Managers \u0026amp; Evaluate Performance provides an invaluable aid to trustees of pension plans, endowments, and trusts who seek to chart and navigate courses for governing and overseeing the investment of the trillions of dollars under their care.\u003c\/p\u003e \u003cp\u003eIndividuals who are in such roles must be well versed in the full range of techniques used to evaluate the effectiveness of investment professionals. This book—one of the very few of its kind—offers detailed, clear advice on improving the effectiveness of those who are entrusted with the oftentimes daunting responsibility of selecting, overseeing, managing, and evaluating investment professionals. The expert authors cover all facets of selecting managers and evaluating performance, including information on investment vehicles such as hedge funds, FOFs, and alternative investments; international investments, including currency impact between country investments; return measures, including a detailed discussion of net of tax calculations; measuring the sensitivity of a bond to interest rate moves; mutual funds and their cost-effectiveness for diversification purposes; manager searches using questionnaires; committee meetings and investing consulting services; and much more.\u003c\/p\u003e \u003cp\u003eThe passage of the Sarbanes-Oxley Act of 2002 combined with explosive growth in the number and types of financial instruments has raised the bar on what is required for those entrusted with oversight responsibilities. How to Select Investment Managers \u0026amp; Evaluate Performance provides those individuals with a comprehensive, yet easy-to-understand guide to being a successful trustee.\u003c\/p\u003e  \u003cp\u003eHow To Select Investment Managers \u0026amp; Evaluate Performance\u003c\/p\u003e \u003cp\u003eThe key to successful investment management is to select investment professionals who can best meet clients' investment goals, objectives, and needs.\u003c\/p\u003e \u003cp\u003eHow to Select Investment Managers \u0026amp; Evaluate Performance provides those who are responsible for the investment performance of their institution's funds—including pension plan trustees, endowment fund board members, and investment committee board members—with the essential knowledge and skill set required to properly select investment managers and to evaluate their performance in a systematic manner.\u003c\/p\u003e \u003cp\u003eThis book describes cutting-edge techniques used to evaluate the performance of investment funds and their managers and provides valuable insight into the roles and responsibilities—in light of the Sarbanes-Oxley Act of 2002—of those charged with this oversight. In a clear and understandable fashion, the authors offer key advice on such topics as establishing investment policy statements, alternative investments, investment approaches and styles, return-risk measurements, how overall portfolio performance is evaluated, how to conduct a search for investment managers, and much more.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989383168229,"sku":"NP9780470042557","price":85.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470042557.jpg?v=1761783898","url":"https:\/\/k12savings.com\/products\/how-to-select-investment-managers-and-evaluate-performance-isbn-9780470042557","provider":"K12savings","version":"1.0","type":"link"}