About the Book
Pension funds are big business. They are important to employers, employees, governments, and society at large. With the increasing concern over dwindling retirement benefits and the effect on public awareness of recent pension fund crises, managing pension plans has never been more critical--and the pressure on those who are responsible for them has only intensified. Destined to become the classic resource on pension plan management, Managing Pension Plans
explains everything you need to know for successful management of any pension plan--from how pension plans help sponsors manage their workforces to the latest in investment and risk management. With concise and
practical guidance on ways for achieving optimal finance performance, Managing Pensions Plans is an indispensable resource for pension fund trustees, boards of directors, managers, and administrators of both public and private pension plans as well as for the money management firms, consultants, actuaries, and accountants who serve the pension fund industry. Logue and Rader, two of the world's leading experts on the subject, explain all the financial, legal, economic, accounting, and
managerial issues that those who make pension fund decisions must juggle--in language that non-financial managers can understand, yet with sufficient depth to be useful to financial managers as well. The authors
synthesize the latest in capital market and financial economics research to help those involved in pension management improve their decision-making in all the critical areas, including: choosing the optimal form of pension plan, formulating and implementing the plan's investment strategy, selecting and monitoring pension plan managers, measuring the plan's performance, and managing financial risk. In addition, the book describes in detail the responsibilities of fiduciaries, revealing how to be
both a prudent fiduciary and a capable decision maker. Additionally, Managing Pension Plans offers candid advice on how pension managers can improve fund performance by being more effective
shareholders. As pension fund management and performance increasingly affect the success of organizations as a whole, this book will be indispensable to anyone--from fund analysts to board members--who influences pension fund decisions.
Table of Contents:
Introduction: The Context of Pension Plan Management
1: Why Have Pension Plans at All?
2: Choosing the Best Pension Plan
3: The Prudent Pension Fiduciary: A Pragmatic View
4: Establishing Pension Investment Policy
5: The Asset Allocation Decision
6: Setting the Strategic Asset Allocation
7: Measuring the Investment Performance of Pension Funds
8: Improving Pension Fund Investment Performance
9: Managing Pension Fund Risk
10: Risk Management Strategies Using Derivative Securities
11: Managing Managers and the Costs of Investing
12: Decision Making and Accounting for Pensions
13: The Pension Plan as Shareholder
14: The Path to Better Pension Plan Management
Appendix A: Employee Stock Ownership Plans
Appendix B: An Example of a Multi-Employer Hybrid Pension Plan
Appendix C: Global Investing for Pension Funds
Appendix D: Measuring Returns
Appendix E: Adjusting for Risk
Appendix F: Example of an Equity Swap Hedge
Appendix G: Manager Selection
Appendix H: Issues for Corporations with Multinational Pension Obligations
Appendix I: A Guide for the Prudent Fiduciary
Glossary of Pension and Related Terms
References
Index
About the Authors
Review :
"Managing Pension Plans is superb! Logue and Rader have created a coherent and readable work on an important and complex topic. As pension funds become critical for insuring financial security for millions of retirees, Logue and Rader fill a tremendous need by providing a credible and comprehensive guide for financial and nonfinancial professionals, business students, and fund trustees."--Charles M. Elson, Professor, Stetson University College of Law
"What a book! Logue and Rader's Managing Pension Plans is a definitive study of decision making around pension funds. Clear, accurate, and thoughtful, the book provides both scholar and practitioner with the history, development, landscape, and nuances of today's pension fund industry. A thorough and impressive work that no pension fiduciary or institutional investor should be without."--Sue Toigo, Chairman, Institute for Fiduciary Education (IFE)
"Managing Pension Plans is essential for anyone who wants to know about pension fund management. Logue and Rader have distilled an complex subject into a comprehensible work. Their excellent book fills a void, providing an accessible, yet complete guide for finance professionals, students, and anyone involved in the pension plan decision."--John D. Finnerty, Partner, Cooper & Lybrand L.L.P., and Professor of Finance, Fordham University
"Managing Pension Plans is superb! Logue and Rader have created a coherent and readable work on an important and complex topic. As pension funds become critical for insuring financial security for millions of retirees, Logue and Rader fill a tremendous need by providing a credible and comprehensive guide for financial and nonfinancial professionals, business students, and fund trustees."--Charles M. Elson, Professor, Stetson University College of Law
"What a book! Logue and Rader's Managing Pension Plans is a definitive study of decision making around pension funds. Clear, accurate, and thoughtful, the book provides both scholar and practitioner with the history, development, landscape, and nuances of today's pension fund industry. A thorough and impressive work that no pension fiduciary or institutional investor should be without."--Sue Toigo, Chairman, Institute for Fiduciary Education (IFE)
"Managing Pension Plans is essential for anyone who wants to know about pension fund management. Logue and Rader have distilled an complex subject into a comprehensible work. Their excellent book fills a void, providing an accessible, yet complete guide for finance professionals, students, and anyone involved in the pension plan decision."--John D. Finnerty, Partner, Cooper & Lybrand L.L.P., and Professor of Finance, Fordham University
