How to Select Investment Managers and Evaluate Performance: A Guide for Pension Funds, Endowments, Foundations, and Trusts -- Contents -- Preface -- About the Authors -- CHAPTER 1 Investment Sponsors -- The Investment Committee -- Committee Composition -- Committee Responsibilities -- The Variety of Investment Sponsors -- Taxable Status -- Qualified versus Nonqualified Retirement Plans -- Private Sector Retirement Plans -- Defined Benefit Plans -- Defined Contribution Plans -- Individual Retirement Plans -- Individual Retirement Accounts -- Qualified Tuition Programs -- Public Sector Retirement Plans -- Public Charities and Private Foundations -- Taxable Investment Sponsors -- Trusts -- Corporations -- Individuals and Partnerships -- Summary -- CHAPTER 2 Investment Policy Statement -- Investment Philosophy and Goals -- Investment Return Objectives -- Risk Tolerances -- Constraints -- Investment Strategy -- In-House or Outside Manager -- Investment Policy -- Securities Types and Risk Characteristics -- Equities -- Fixed Income Securities -- Cash and Equivalents -- Asset Allocation Guidelines -- Evaluation of Performance -- Using Indexes as an Evaluation Tool -- Equity Indexes -- Fixed Income Indexes -- Cash and Equivalents -- Benchmark Portfolios -- Composite Indexes -- Using Universes as an Evaluation Tool -- Periodic Review -- Summary -- CHAPTER 3 Investment Overview -- Capital Appreciation versus Current Income -- Active versus Passive Investment Approaches -- Investment Styles-Equity Managers -- Capitalization -- Growth -- Value -- Cyclical -- Market -- Sector -- Contrarian -- International Investing -- Investment Styles-Fixed Income Managers -- Quality Considerations -- Maturity Considerations -- Summary -- CHAPTER 4 Alternative Investment Vehicles -- Hybrid Securities -- Convertible Securities -- Convertible Bonds.

Convertible Preferred Stock -- Warrants -- Derivative Contracts -- Uses of Derivative Contracts -- Derivative Markets and Types of Derivative Contracts -- International Investment Vehicles -- Real Estate Investment Vehicles -- Investment Vehicles for Accredited Investors -- Hedge Funds -- Private Equity Funds: Venture Capital and Buyout Funds -- Commodities and Collectibles -- Summary -- CHAPTER 5 Return Measures and Reporting Techniques -- Dollar-Weighted Rate of Return -- Impact of Cash Withdrawals on Return -- Impact of Cash Contributions on Return -- Time-Weighted Rate of Return -- Annualized Rates of Return -- Geometric Mean -- Total Return and its Components -- Dividend Reinvestment -- Compound Growth -- Gross versus Net of Fees -- Mutual Funds -- Alternative Investments -- Summary -- CHAPTER 6 Return-Risk Measurement -- Return Relative -- Standard Deviation -- Portfolio Risk Measure -- Scatter Diagram -- Coefficient of Variation -- Regression Analysis -- Portfolio Size and Diversification Levels -- Regression Analysis of Fund I -- Additional Performance Indexes -- Summary -- CHAPTER 7 Portfolio Performance Evaluation -- Performance Results -- Composite Index -- Return-Risk Analysis -- Universe Comparison -- Evaluating the Asset Allocation Decision -- Portfolio Decomposition Analysis -- Nonnormally Distributed Asset Classes -- Evaluation of Cash and Equivalent Component -- Summary -- CHAPTER 8 Equity Performance Evaluation -- Equity Performance Criteria -- Sector Analysis -- Return-Risk Comparison -- Market Characteristics -- Additional Performance Measures -- Attribution Analysis -- Summary -- CHAPTER 9 Fixed Income Performance Evaluation -- Asset Allocation Ranges and Anticipated Contributions -- Issuers of Fixed Income Securities -- Bond Indexes -- Bond Prices and Yields -- Bond Prices -- Bond Yields -- Term Structure of Interest Rates.

Quality of Fixed Income Securities -- Credit Risk -- Interest Rate Risk -- Duration -- Additional Duration Measures -- Convexity -- Maturity Characteristics -- Return Analysis -- BondEdge Factor-Based Model -- BondEdge Returns-Based Model -- CFA Institute Standards -- Fixed Income Management Styles -- Passive Fixed Income Management -- Active Fixed Income Management -- Performance Analysis -- Summary -- CHAPTER 10 Investment Companies as Investment Vehicles -- Investment Companies -- Regulation of Investment Companies -- Types of Investment Companies -- Open-End Funds -- Types of Open-End Funds -- Fees and Share Classes -- Closed-End Funds -- Unit Investment Trusts -- Exchange-Traded Funds -- Selecting Mutual Funds -- Performance Evaluation -- Summary -- CHAPTER 11 Investment Manager Search Process -- Search Committee -- Establishing Goals -- Number of Managers -- Candidate Identification -- Management and Related Fees -- Firm Size and Ownership -- Request for Proposals (RFP) -- Screening of Candidates -- Candidates Presentations -- Verification and Reference Checking -- Final Selection -- Cost of Switching -- Administration of Change -- Summary -- CHAPTER 12 Conducting Investment Committee Meetings -- Meeting Preparations -- Agenda and Meeting Materials -- Setting the Agenda -- Responsibilities of the Chairperson -- Investment Consulting Services -- Investment Performance Review and Outlook -- Review of Investment Policy Statement -- Old Business -- New Business -- Summary -- Index -- EULA.