The Independent Fiduciary Investing for Pension Funds and Endowment Funds,9780471353874

The Independent Fiduciary Investing for Pension Funds and Endowment Funds

by
Edition: 1st
ISBN13: 9780471353874
ISBN10: 0471353876
Format: Hardcover
Pub. Date: 1999-10-11
Publisher(s): Wiley
List Price: $78.75

Rent Book

Select for Price
Add to Cart
There was a problem. Please try again later.

New Book

We're Sorry
Sold Out

Used Book

We're Sorry
Sold Out

eBook

We're Sorry
Not Available

Buy from our Marketplace starting at $15.21

How Marketplace Works:

  • This item is offered by an independent seller and not shipped from our warehouse
  • Item details like edition and cover design may differ from our description; see seller's comments before ordering.
  • Sellers much confirm and ship within two business days; otherwise, the order will be cancelled and refunded.
  • Marketplace purchases cannot be returned to eCampus.com. Contact the seller directly for inquiries; if no response within two days, contact customer service.
  • Additional shipping costs apply to Marketplace purchases. Review shipping costs at checkout.

Summary

Praise for The Independent Fiduciary "Rusty Olson is a pioneer and leader in wise investing for pension funds. Institutional executives in all nations should study his experienced advice." -John M. Templeton Founder, Templeton Investment Counsel "Rusty Olson has provided a reader-friendly tour through the complex jungle of investing, pointing out both the opportunities and pitfalls that lie before the independent fiduciary. At once constructive and skeptical, his common sense-particularly the wit and wisdom of Chapter 18, ‘Aphorisms'-shows through this thoughtful book." -John C. Bogle Founder, The Vanguard Group "Rusty Olson is one of the best managers the fund sponsor side has ever produced. He understands the risk and reward of diverse asset classes and has the stomach to follow his convictions. He is in every sense a professional investor." -William Crerend Founder, Evaluation Associates, Inc. "I can highly recommend Rusty Olson's new book on the basis of almost twenty years' experience with him. He touches on all the bases of possible intelligent investment, by no means limiting his responsibilities to the active market of the stock exchange, NASDAQ, etc. It would seem essential that every library in the country should want to own this volume." -Roy R. Neuberger Founder, Neuberger Berman "Rusty Olson is a wise fiduciary. Drawing on his vast experience he introduces the language, concepts, and issues that every fiduciary must understand and suggests solutions to many thorny problems." -Barr Rosenberg Chairman, AXA Rosenberg Group LLC "Rusty Olson has been one of the most intense students and brilliant executors of investment opportunities and risk assessment for retirement funds. BARRA RogersCasey has had the honor to serve Rusty and Eastman Kodak for over twenty years-always learning from him. The Independent Fiduciary will evolve into Retirement Fund Investing 101 for newcomers and experienced practitioners alike." -John F. Casey Chairman, BARRA RogersCasey

Author Biography

<b>RUSTY OLSON</b> is Director of Pension Investments Worldwide at Eastman Kodak. Kodaks pension portfolio has been rated closest to the "efficient frontier" of risk/return by Ibbotson Associates. Mr. Olson has been listed among Americas best pension officers by Institutional Investor. In 1993 the Investment Management Institute named him its first Plan Sponsor of the Year.

Table of Contents

Introduction 1(2)
Organization of the Book
3(2)
Keeping Score I: Investment Returns
5(24)
Total Return
6(1)
Valuing Our Investments
7(1)
What's a Good Rate of Return?
8(9)
Benchmarks for a Manager
17(5)
Returns on a Portfolio of Investments
22(2)
In Short
24(1)
Appendix A: Calculating Rates of Return
25(4)
Keeping Score II: Risk
29(19)
Volatility
31(4)
Correlation
35(1)
Systematic Risk and Diversifiable Risk
35(1)
What to Do about Risk?
36(1)
The Efficient Frontier
37(2)
Risk-Adjusted Returns: The Sharpe Ratio
39(1)
Application of Risk-Adjusted Returns
40(2)
Risk of Increased Pension Contributions
42(1)
Derivatives---A Boon, or a Different Four-Letter Word?
43(4)
Overall Fund Risk
47(1)
In Short
47(1)
Investment Objectives
48(18)
Time Horizon
49(2)
Risk
51(3)
Return
54(2)
Measuring the Benchmark
56(1)
Target Asset Allocation
57(1)
Rebalancing
58(1)
Preparing a Statement of Investment Policies
59(6)
In Short
65(1)
Asset Allocation
66(30)
Characteristics of an Asset Class
67(7)
Asset Classes
74(14)
Putting It All Together
88(5)
A Secondary Benefit of Diversification
93(2)
In Short
95(1)
Selecting Investment Managers
96(25)
Our Goal
96(1)
Three Basic Approaches
97(9)
Categorizing Managers by Style
106(1)
Benchmark Risk
106(1)
Accentuating the Positive
107(1)
Arrogant Managers
108(1)
A Passion to Be Best
109(1)
Strategic Partners
109(1)
How Much Excess Return to Expect
110(1)
Commingled Funds
111(1)
How Many Managers?
112(2)
Fees
114(2)
In Short
116(1)
Appendix A: Typical Questionnaire for a Prospective Equity Manager
117(4)
Managing Investment Managers
121(30)
The Management Agreement
121(1)
Objectives of the Account
122(1)
Monitoring Managers
123(8)
The Meaning of Control
131(1)
When to Take Action
132(9)
Dollar-Cost Averaging
141(1)
Rebalancing
141(2)
In Short
143(1)
Appendix A: Typical Annual Questionnaire for an Existing Equity Manager
144(5)
Appendix B: Dollar-Cost Averaging
149(2)
Investing in Real Estate
151(13)
Private Investments
151(2)
Core Real Estate
153(2)
Venture Real Estate
155(2)
Ways to Invest in Real Estate
157(5)
International Real Estate
162(1)
In Short
163(1)
Alternative Asset Classes
164(23)
Venture Capital Funds
164(4)
Buy-In Funds
168(1)
Buy-Out Funds and LBOs
169(1)
Distressed Securities
170(1)
Absolute Return Programs
171(13)
In Short
184(1)
Appendix A: How Does Leveraged Convertible Arbitrage Work?
185(2)
Negotiating Agreements for Private Investments
187(20)
An ERISA Problem
188(1)
Terms and Conditions for Consideration by Plan Sponsors When Investing in Private Investment Funds
189(12)
Other Due Diligence Procedures
201(1)
Legal Documentation
202(1)
In Short
202(1)
Appendix A: A Real Estate Performance Fee Schedule
203(4)
The Master Trustee
207(10)
Keeping the Books
208(2)
Management Information
210(2)
Flexibility
212(1)
An Extension of the Plan Sponsor's Staff
213(1)
Criteria for Selecting a Master Trustee
214(1)
In Short
214(1)
Appendix A: The Master Trustee/The Master Custodian
215(2)
Bells and Whistles
217(16)
The Bank
217(5)
Securities Lending
222(2)
Hedging Foreign Exchange
224(4)
Soft Dollars
228(4)
In Short
232(1)
Information Retrieval System (Files)
233(4)
Committee Meeting Records
233(1)
Contracts and Agreements
234(1)
Permanent Files on Each Manager
234(1)
Financial Reports
235(1)
Current Correspondence File
235(1)
Manager Notebook
235(1)
Money Manager Files
236(1)
In Short
236(1)
Keeping Score III: Liabilities
237(11)
Measuring a Pension Liability
237(2)
Pension Liabilities for Active Employees
239(3)
Pension Expense and Pension Contributions
242(3)
Immunization
245(1)
Impact of Liabilities on Investment Strategy
246(1)
Impact of Pension Expense on Corporate Budgets
247(1)
In Short
247(1)
Governance
248(19)
Standards to Meet
249(1)
Fiduciary Committees
250(5)
Staff
255(4)
Interaction of Committee and Staff
259(6)
Advice of Counsel
265(1)
Proxies
266(1)
In Short
266(1)
Coordinating Pension Financing at a Company's Subsidiaries
267(7)
Global Policies
268(3)
Can One Size Fit All?
271(2)
In Short
273(1)
Defined Benefit Plans vs. Defined Contribution Plans
274(6)
Changes in the Public Sector
277(1)
A Word about Lump Sums
278(1)
In Short
279(1)
Endowment Funds
280(19)
The Total Return, Imputed Income Approach
281(2)
``Owners'' of the Endowment Fund
283(2)
Investing Endowment Funds
285(3)
Social Investing
288(2)
In Short
290(1)
Appendix A: Pro Forma Results of the Imputed Income Method
291(2)
Appendix B: The Total Return or Imputed Income Method
293(2)
Appendix C: Unit Accounting
295(4)
Aphorisms
299(18)
Investing under Uncertainty
299(1)
Playing the Odds
299(1)
What We Don't Know
300(1)
Reversion to the Mean
300(1)
Keys on the Piano
301(1)
Murphy's Law and Discontinuities
301(1)
The Dreaded Disease of Myopia
302(1)
A Game of Inches
302(1)
I Was Wrong
303(1)
The Open Mind
303(1)
On Taking Advice
304(1)
Thinking Outside the Box
305(1)
Opportunists
306(1)
Leverage
307(1)
Question the Numbers
308(1)
Close Enough Is Good Enough---and Sometimes Better
309(1)
Why?
310(1)
So What?
310(1)
Impatience
311(1)
Trust
311(1)
Aphorisms of Others
312(4)
In Short
316(1)
Index 317

An electronic version of this book is available through VitalSource.

This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.

By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.

Digital License

You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.

More details can be found here.

A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.

Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.

Please view the compatibility matrix prior to purchase.