Synopses & Reviews
People 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 performancepension plan trustees, endowment fund board members, and investment committee members of boardslack even the most basic knowledge and understanding of the processes and criteria involved in selecting investment professionals and evaluating their performance.
How to Select Investment Managers & 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.
Individuals who are in such roles must be well versed in the full range of techniques used to evaluate the effectiveness of investment professionals. This bookone of the very few of its kindoffers 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.
The 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 & Evaluate Performance provides those individuals with a comprehensive, yet easy-to-understand guide to being a successful trustee.
Review
"These guys know how to check their facts." (
Albourne Village - village.albourne.com, Tuesday 22nd January 2008)
"...this useful guide for professionals is timely." (Pensions World, Ferbruary 2008)
Synopsis
An informative guide to selecting and evaluating external investment professionals
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.
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.
Synopsis
How To Select Investment Managers & Evaluate Performance
The key to successful investment management is to select investment professionals who can best meet clients' investment goals, objectives, and needs.
How to Select Investment Managers & Evaluate Performance provides those who are responsible for the investment performance of their institution's fundsincluding pension plan trustees, endowment fund board members, and investment committee board memberswith the essential knowledge and skill set required to properly select investment managers and to evaluate their performance in a systematic manner.
This book describes cutting-edge techniques used to evaluate the performance of investment funds and their managers and provides valuable insight into the roles and responsibilitiesin light of the Sarbanes-Oxley Act of 2002of 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.
About the Author
G. Timothy Haight, 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.
Dr. Stephen O. Morrell 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.
Glenn E. Ross 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.
Table of Contents
Preface.
About the Authors.
Chapter 1. Investment Sponsors.
Chapter 2. Investment Policy Statement.
Chapter 3. Investment Overview.
Chapter 4. Alternative Investment Vehicles.
Chapter 5. Return Measures and Reporting Techniques.
Chapter 6. Return-Risk Measurement.
Chapter 7. Portfolio Performance Evaluation.
Chapter 8. Equity Performance Evaluation.
Chapter 9. Fixed Income Performance Evaluation.
Chapter 10. Investment Companies as Investment Vehicles.
Chapter 11. Investment Manager Search Process.
Chapter 12. Conducting Investment Committee Meetings.
Index.