{"product_id":"liability-driven-investment-isbn-9781119441953","title":"Liability-Driven Investment","description":"\u003cp\u003e\u003cb\u003eUnderstand the investment template that dominates the pension industry\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eLiability-Driven Investment\u003c\/i\u003e is the practitioner’s guide to this increasingly popular investment template. Already the dominant framework for pension schemes in Europe and the UK, the LDI market is expected to grow significantly with the shift from Defined Benefit to Defined Contribution, and then into Digital Asset Management — or Robo-Advice. With an aging population and significant under-saving globally, more and more finance professionals will need to know how to work within and around the LDI framework; this book provides clear explanations for the framework's usefulness and growing popularity to help practitioners find their bearings in and around the LDI space.\u003c\/p\u003e \u003cp\u003eThe ultimate goal of LDI is to move beyond simple asset value maximisation and ensure that investors have sufficient funds to pay liabilities. This informative guide digs into that basic premise to show the various mechanisms, guidelines and practices that make up the framework's \"working parts.\"\u003c\/p\u003e \u003cul\u003e \u003cli\u003eDiscover the optimal investment strategies in multiple assets classes\u003c\/li\u003e \u003cli\u003eUnderstand the key characteristics of the instruments used, including bonds, interest rate derivatives, and inflation linked products\u003c\/li\u003e \u003cli\u003eLearn why pension companies and individual investors are moving toward LDI\u003c\/li\u003e \u003cli\u003eExplore the ways in which the explosive growth of Robo-Advice will change retail investment\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eFinance professionals have long been accustomed to shifting landscapes — it is taken as a given that prevailing thought and attendant practices will change over time — but the rapid expansion of LDI has taken many by surprise. Having already been established as the dominant framework for pensions, it is clear that the emphasis on LDI will only continue to grow. \u003ci\u003eLiability-Driven Investment\u003c\/i\u003e tells you what you need to know in order to work effectively with LDI.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Liability-Driven Investment and Multi-Asset Class Investing 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMoving Beyond Modern Portfolio Theory: Introducing the World of Liability-Driven Investment 1\u003c\/p\u003e \u003cp\u003eThe Cult of Equity 6\u003c\/p\u003e \u003cp\u003eThe Pension Protection Fund 7\u003c\/p\u003e \u003cp\u003eSummary 13\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Introduction to Investment Risk 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Management 18\u003c\/p\u003e \u003cp\u003eThe Importance of Risk vs Return 18\u003c\/p\u003e \u003cp\u003eQuantifying Risk 19\u003c\/p\u003e \u003cp\u003eSystematic and Nonsystematic Risk 19\u003c\/p\u003e \u003cp\u003eCreating A Risk Profile 20\u003c\/p\u003e \u003cp\u003eSummary 21\u003c\/p\u003e \u003cp\u003eSome Basic Rules of Investment Risk 21\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Introductory Steps into the World of Multi-Asset Class Investment 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSome Handy Definitions 25\u003c\/p\u003e \u003cp\u003eThe Starting Point 26\u003c\/p\u003e \u003cp\u003eIntroducing Modern Portfolio Theory 27\u003c\/p\u003e \u003cp\u003eMore Handy Definitions 29\u003c\/p\u003e \u003cp\u003eBut How Does the Asset Allocation Decision work? 30\u003c\/p\u003e \u003cp\u003eHome Country Bias: 32\u003c\/p\u003e \u003cp\u003eDeveloping a Strategy for Multiple Asset Classes 33\u003c\/p\u003e \u003cp\u003eHandy Definitions 34\u003c\/p\u003e \u003cp\u003eQuick Aside: 36\u003c\/p\u003e \u003cp\u003eSummary 36\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Building Investment Portfolios 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e(Fundamental, Technical and Quantitative Techniques) 39\u003c\/p\u003e \u003cp\u003eAn Introduction to Single Stock Selection 40\u003c\/p\u003e \u003cp\u003eThe Types of Analysis 40\u003c\/p\u003e \u003cp\u003eFundamental Analysis of Securities 41\u003c\/p\u003e \u003cp\u003eIntroducing Ratio Analysis 42\u003c\/p\u003e \u003cp\u003eLiquidity and Solvency Ratios 43\u003c\/p\u003e \u003cp\u003eCurrent Ratio 43\u003c\/p\u003e \u003cp\u003eThe Quick Ratio or Acid Test 43\u003c\/p\u003e \u003cp\u003eCash Ratio 44\u003c\/p\u003e \u003cp\u003eFinancial Leverage or Debt Ratios 44\u003c\/p\u003e \u003cp\u003eTechnical Analysis of Securities 45\u003c\/p\u003e \u003cp\u003eThe Main Assumptions of Technical Analysis 46\u003c\/p\u003e \u003cp\u003eQuantitative Analysis 47\u003c\/p\u003e \u003cp\u003ePassive Investors 48\u003c\/p\u003e \u003cp\u003eThe Passive vs Active Debate 48\u003c\/p\u003e \u003cp\u003eIntroducing the Efficient Market Hypothesis 48\u003c\/p\u003e \u003cp\u003eSo Why Use Active Managers? 51\u003c\/p\u003e \u003cp\u003eSo Passive or Active? 56\u003c\/p\u003e \u003cp\u003eSummary 57\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Building Investment Portfolios 59\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChoosing the Manager 61\u003c\/p\u003e \u003cp\u003eMoving on to Operational Due Diligence 63\u003c\/p\u003e \u003cp\u003eA Sample (Non-Exhaustive) List of Operational Checks 63\u003c\/p\u003e \u003cp\u003eQuick Aside: Replicating Private Equity and a Passive Venture Capital Fund 65\u003c\/p\u003e \u003cp\u003ePart 3 Portfolio Selection 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Moving Towards Liability Driven Investing 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Time Value of Money 73\u003c\/p\u003e \u003cp\u003eMore Extreme than the Extreme 76\u003c\/p\u003e \u003cp\u003eThe Basics Continued: Real Versus Nominal Discounting 77\u003c\/p\u003e \u003cp\u003eA Simple and Brief Look at Bonds 78\u003c\/p\u003e \u003cp\u003eSome Other Types of Bonds 79\u003c\/p\u003e \u003cp\u003eHow to Price a Bond 80\u003c\/p\u003e \u003cp\u003eKey Terms 80\u003c\/p\u003e \u003cp\u003eImmunisation Theory and Frank Redington 81\u003c\/p\u003e \u003cp\u003eAn Introduction to Interest Rate Swaps 82\u003c\/p\u003e \u003cp\u003eWhat Is an Interest Rate Swap? 83\u003c\/p\u003e \u003cp\u003eThe Mechanics 83\u003c\/p\u003e \u003cp\u003eSome Terms Used in the Market 83\u003c\/p\u003e \u003cp\u003eA Quick Aside: Forward Rate Agreements (FRAs) 84\u003c\/p\u003e \u003cp\u003eAn Introduction to Inflation-Linked Securities 85\u003c\/p\u003e \u003cp\u003eWhy Do Governments Issue Inflation-Linked Bonds? 87\u003c\/p\u003e \u003cp\u003eThe Basic Mechanics 88\u003c\/p\u003e \u003cp\u003eInflation-Linked Swaps 89\u003c\/p\u003e \u003cp\u003eThe Global Market 90\u003c\/p\u003e \u003cp\u003ePayers vs Receivers 91\u003c\/p\u003e \u003cp\u003eThe Zero-Coupon Swap 91\u003c\/p\u003e \u003cp\u003eCHAPTER 7 The Defined Benefit Pension Plan and Explicit Liabilities 93\u003c\/p\u003e \u003cp\u003eThe Boots Example 95\u003c\/p\u003e \u003cp\u003eThe Stakeholders in a Typical Plan 97\u003c\/p\u003e \u003cp\u003eA Checklist for Trustees 97\u003c\/p\u003e \u003cp\u003eWhat Are the Liabilities? 98\u003c\/p\u003e \u003cp\u003eCHAPTER 8 ESG, Governance and the Pensions Industry 101\u003c\/p\u003e \u003cp\u003eThe UN PRI 103\u003c\/p\u003e \u003cp\u003eThe Increasing Importance of ESG 105\u003c\/p\u003e \u003cp\u003eWhat Does ESG Represent? 106\u003c\/p\u003e \u003cp\u003eThe Main Approaches to Ethical Investing 107\u003c\/p\u003e \u003cp\u003eScreening and Beyond 107\u003c\/p\u003e \u003cp\u003eESG: A Screening Approach 108\u003c\/p\u003e \u003cp\u003eImplementing a Screen 110\u003c\/p\u003e \u003cp\u003eESG: An Integration-Based Approach 111\u003c\/p\u003e \u003cp\u003eBest in Class Positive Screening 112\u003c\/p\u003e \u003cp\u003eImpact-Based ESG Investing 114\u003c\/p\u003e \u003cp\u003eEngagement-Based ESG Investing 117\u003c\/p\u003e \u003cp\u003eESG in History 119\u003c\/p\u003e \u003cp\u003eThe Case of Cowan vs Scargill 119\u003c\/p\u003e \u003cp\u003eIncorporating ESG into the SIP 121\u003c\/p\u003e \u003cp\u003eThe Revised Statement Should 122\u003c\/p\u003e \u003cp\u003eCHAPTER 9 Moving Beyond Liability-Driven Investment 123\u003c\/p\u003e \u003cp\u003eThe World of CDI 123\u003c\/p\u003e \u003cp\u003eWhat is the Difference Between LDI and CDI? 125\u003c\/p\u003e \u003cp\u003eCredit Where It's Due 126\u003c\/p\u003e \u003cp\u003eMoving into Illiquid Credit 126\u003c\/p\u003e \u003cp\u003eCash Flow-Driven Investment in Action 128\u003c\/p\u003e \u003cp\u003eThe ABC Scheme 128\u003c\/p\u003e \u003cp\u003eWhat Are the Objectives of Our Typical CDI Scheme? 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 The Statement of Investment Principles 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDrawing up a Statement of Investment Principles 131\u003c\/p\u003e \u003cp\u003eWhat the SIP must include 131\u003c\/p\u003e \u003cp\u003ePreparing the SIP 132\u003c\/p\u003e \u003cp\u003eA Sample Statement of Investment Principles 132\u003c\/p\u003e \u003cp\u003eStatement of Investment Principles for the ABC Plan 132\u003c\/p\u003e \u003cp\u003eInvestment Objective and Strategy 133\u003c\/p\u003e \u003cp\u003eInvestment Strategy 133\u003c\/p\u003e \u003cp\u003eInvestment Restrictions 134\u003c\/p\u003e \u003cp\u003eInvestment Risk 134\u003c\/p\u003e \u003cp\u003eRealising Investments 135\u003c\/p\u003e \u003cp\u003eResponsible Investment 135\u003c\/p\u003e \u003cp\u003eAdditional Voluntary Contributions (AVCs) 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Liability-Driven RoboAdvice and the Development and Digitisation of the Industry 139\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWealthTech: How Wealth Managers and their Clients are Embracing New Technologies 139\u003c\/p\u003e \u003cp\u003eFrom WealthTech to Robo-Advice 143\u003c\/p\u003e \u003cp\u003eRobo-Advice in Ten Points 143\u003c\/p\u003e \u003cp\u003eA Brief Introduction to Robo-Advice 145\u003c\/p\u003e \u003cp\u003ePricing Structures for Digital Advice 147\u003c\/p\u003e \u003cp\u003eAdvice or Guidance: Robo-advice or Partially Automated Digital Guidance 148\u003c\/p\u003e \u003cp\u003eFrom the FCA 150\u003c\/p\u003e \u003cp\u003eFurther Developments in LDI 151\u003c\/p\u003e \u003cp\u003eThe Evolution of LDI and the Creation of Cash Flow-Driven Investment 151\u003c\/p\u003e \u003cp\u003eWhat is Cash Flow-Driven Investment? 151\u003c\/p\u003e \u003cp\u003eThe Evolution of LDI 152\u003c\/p\u003e \u003cp\u003eINDEX 155\u003c\/p\u003e \u003cp\u003e\u003cb\u003eDAN TAMMAS-HASTINGS\u003c\/b\u003e has over 20 years experience in the financial markets. He is the CEO and founder at the Asset Management and Digital Advice firm RiskSave. He founded the company in 2015, in response to inadequate risk measures and a lack of transparency dominating the financial services industry. After a successful career as a fixed income trader specialising in GBP derivatives at Merrill Lynch and as a hedge fund manager, managing multi-billion-pound portfolios across credit and rates, he now writes on various issues within investment and risk management and is in charge of strategy and investment at RiskSave as well as advising other investment and technology firms. Dan has been awarded both the CFA and FRM charters, and is a graduate of the London School of Economics and the University of Cambridge.\u003c\/p\u003e  \u003cp\u003e\u003ci\u003eLiability-Driven Investment\u003c\/i\u003e offers personal and professional investors an introduction to creating investment portfolios using a broad range of asset classes and explains why finance professionals are increasingly depending on liability driven investment (LDI) frameworks. This book provides an invaluable resource in a world where the majority of pension money is invested using a LDI strategy.\u003c\/p\u003e \u003cp\u003eDan Tammas-Hastings, founder of the digital asset management firm RiskSave, describes how LDI works, examines the major asset classes, reviews the basics of fund selection and management and explains how to use these building blocks to create a diversified portfolio. In addition, the book looks at the regulatory and ethical issues involved in creating multi-asset class portfolios.  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eSecure your financial future with a liability driven investment strategy\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003eThe liability driven investment (LDI) market is forecasted to grow exponentially, particularly within the realm of robo-advising and digital asset management. \u003ci\u003eLiability-Driven Investment\u003c\/i\u003e is a practical book that offers a guide to liability driven’s fast-growing class of investment strategies. Dan Tammas-Hastings clearly explains investment theory and highlights the risk management frameworks used by international capital markets to create modern investment portfolios. He also details the regulations to which both professional and amateur investors must adhere. \u003c\/p\u003e\u003cp\u003eA comprehensive resource, the book examines the impact technology has had on how and when to invest and reveals why technology is likely to create further changes in the future. The book examines multiple topics on this fast-growing class of investment strategies including vital information on optimal liability driven investment, the key characteristics of bonds, interest rate derivatives, zero coupon and inflation swaps. \u003c\/p\u003e\u003cp\u003eDiscover why so many pension funds and individual investors are moving to adopt an LDI investment strategy.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989526266085,"sku":"NP9781119441953","price":37.5,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119441953.jpg?v=1761784463","url":"https:\/\/k12savings.com\/products\/liability-driven-investment-isbn-9781119441953","provider":"K12savings","version":"1.0","type":"link"}