The Handbook for Investment Committee Members: How to Make Prudent Investments for Your Organization

Introduction.

Organization of this Book.

CHAPTER 1: The Investment Committee.

Standards to Meet.

Committee Organization and Functions.

Interaction of Committee and Adviser.

Social Investing.

In Short.

APPENDIX 1: Example of an Investment Committee’s Operating Policies.

CHAPTER 2: Risk, Return, and Correlation.

Return.

Risk.

Correlation.

Risk-Adjusted Returns.

Derivatives—A Boon or a Different Four-Letter Word?

In Short.

CHAPTER 3: Setting Investment Policies.

Time Horizon, Risk, and Return.

Policy Asset Allocation.

Preparing a Statement of Investment Policies.

In Short.

CHAPTER 4: Asset Allocation.

Characteristics of an Asset Class.

Asset Classes.

Putting It All Together.

In Short.

CHAPTER 5: Alternative Asset Classes.

Liquid Alternative Assets.

Illiquid Investments.

Private Asset Classes.

In Short.

CHAPTER 6: Selecting and Monitoring Investment Managers.

Three Basic Approaches.

Criteria for Hiring and Retaining Managers.

Hiring Managers.

Retaining Managers.

In Short.

CHAPTER 7: The Custodian.

Custodial Reporting.

Management Information.

In Short.

CHAPTER 8: Evaluating an Investment Fund’s Organization.

Investment Objectives.

Asset Allocation.

The Fiduciary Committee.

The Adviser.

Investment Managers.

CHAPTER 9: Structure of an Endowment Fund.

The Total Return, or Imputed Income, Approach.

“Owners” of the Endowment Fund.

In Short.

APPENDIX 9: The Total Return or Imputed Income Method.

CHAPTER 10: What’s Different about Pension Funds?

Pension Plan Liabilities.

Investment Implications.

In Short.

CHAPTER 11: Once Again.

Glossary.

Bibliography.

Index.

About the Author.