Institutional Money Management: An Inside Look at Strategies, Players, and Practices

PART I Foundations: Market Regulation and Performance Evaluation and Reporting

1 Institutional MoneyManagement: An Overview 3
David M. Smith and Hany A. Shawky

2 Regulatory Issues in Institutional Investment Management 13
David McCaffrey

3 Indexes: Purpose, Construction, and Performance 35
Vijay Singal

4 Performance Reporting Standards and Verification 55
Karyn D. Vincent

PART II Key Individuals to the Investment Process

5 The Chief Investment Strategist/Economist 73
Timothy G. Dalton Jr.

6 The Portfolio Manager, the Analyst, and the Trader 89
John Walthausen

7 The Institutional Investment Consultant 99
William H. Desormeau Jr.

PART III Major Investment Approaches

8 Investment Buy and Sell Decision Making 115
Hany A. Shawky and David M. Smith

9 Index Investing 129
Albert S. Neubert

10 Quantitative Techniques and Risk Management 143
Ross M. Miller

11 Active Equity Portfolio Strategies: Dynamic Quantitative Models 161
Marc R. Reinganum, Ying L. Becker, and Chen He

12 Fixed Income Securities 181
Matthew T. Buckley, Scott H. Page, Thomas H. Luster, Susan Schiff, Payson F. Swaffield, and Michael W. Weilheimer

13 Fixed Income Strategies 205
Thomas M. Metzold, Cynthia J. Clemson, Christine M. Johnston, James H. Evans, Marc R. Moran, Evan C. Rourke, and Adam A. Weigold

14 Asset Allocation and Life Cycle Investing 217
Edgar A. Norton

PART IV Types of Institutional Investors

15 Mutual Funds 239
Ying Wang, Matthew P. Reiner, and Gregory A. Roeder

16 Hedge Funds and Funds of Hedge Funds 263
Paul Zummo

17 Endowment and Foundation Funds 295
Hany A. Shawky and David M. Smith

18 Pension Funds 309
Steven M. Harding

19 Insurance Companies: A Practitioner’s Perspective 327
Richard A. Witt

20 SovereignWealth Fund Investment and Risk Management Practices 349
Christopher Balding

21 Venture Capital Funds 359
Na Dai

22 Wealth Management Firms as Institutional Investors 375
Dan Trosch

About the Editors 391

Index 393