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The Pension Trustee's Investment Guide

Far too many pension trustees – even in large funds – have an inadequate understanding of investment and financial markets. This book – tailored specifically for pension fund trustees – fills an important knowledge gap.

Paperback

GBP 20.00
EUR 23.99
USD 48.95

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Overview

Designed as a practical, easy-to-follow guide to the new financial environment in which pension trustees are learning to operate, it provides them with a set of working definitions, and the financial techniques and tools they need in order to improve their returns and safeguard their risks.

It summarises the latest thinking and tech-niques in traditional assets, such as equities, bonds, property and cash, and examines the potential for investing in less conventional asset classes, such as hedge funds, private equity and commodities, where both rewards and risks can be high.

Understanding financial markets

Far too many pension trustees – even in large funds – have an inadequate understanding of investment and financial markets. This book – tailored specifically for pension fund trustees – fills an important knowledge gap.

Designed as a practical, easy-to-follow guide to the new financial environment in which pension trustees are learning to operate, it provides you with a set of working definitions, and the financial techniques and tools needed in order to improve returns and safeguard risks.

It summarises the latest thinking and techniques in traditional assets, such as equities, bonds, property and cash, and examines the potential for investing in less conventional asset classes, such as hedge funds, private equity and commodities, where both rewards and risks can be high.

Content

Part 1 -The trustee as investor

The trustee’s role

  • Trust and regulation
  • Knowledge and understanding

Scheme funding

  • The valuation
  • The sponsoring employer
  • The recovery plan
  • Schedule of contributions
  • Funding statements

Powers to invest

  • Suitable care
  • Limitations
  • Proper advice
  • Statement of investment principles

Asset allocation

  • Prudent portfolios
  • New thinking
  • The starting point
  • Asset classes

Part 2 Core assets

Quoted equities (shares)

  • Future returns
  • Growth or value
  • Large cap or small cap
  • Performance measures
  • International switch
  • Passive or active
  • Investment styles
  • Held to account

Bonds

  • Fixed income
  • Other types of bonds
  • Yields and price
  • The yield curve
  • Economic risks
  • Credit risks

Property 63

  • Returns
  • Capital intensive
  • Direct or indirect
  • Local or international

Cash

  • Interest rates
  • The instruments
  • Part 2
  • Alternative assets

Private equity

  • Investment vehicles
  • Venture capital
  • Buy-outs
  • Costs
  • Returns

Hedge funds

  • Investment techniques
  • Investment strategies

Commodities

  • The market
  • The contracts
  • Trading the index

Infrastructure

  • Asset qualities
  • Risks
  • Channels

Part 3 – Derivatives

Risk instruments

  • What they are
  • The markets

Futures

  • The futures contract
  • Hedging
  • Returns
  • Controls

Swaps

  • How they work
  • Use by pension funds
  • Financial position

Options

  • Calls and puts
  • Uses

Part 4 Alternative strategies*

Liability driven investment

  • Liability profile
  • Liability matches
  • Pooled funds
  • Best returns, least risk

Multi-asset investing

  • A new mindset
  • Risk models
  • 19 Portable alpha
  • Beta and alpha
  • Alpha transfer

Pooling

  • Common investment funds
  • European pooling
  • Unit trusts and investment companies
  • Limited partnerships

Appendices
I The bluffer’s guide
II The British Pensions System
III Pensions by numbers
IV Bluffer’s cases 193
V Addresses 201
VI Further reading

Reviews

Endorsed by The Pensions Management Institute

The Pension Trustee’s Investment Guide has been endorsed by the Pensions Management Institute, the professional body for those working in the field of pensions and employee benefits..

For further details on trustee innovations and awards, go to the The Pensions Management Institute website.

The author

Robin Ellison is Head of Strategy, Pensions at UK law firm Pinsent Masons. He is a member of the CBI Pensions Panel and a trustee of several pension funds, both as independent trustee and as chairman. He also practices as a commercial mediator.

He is the author of numerous books on pensions including The Pension Trustee’s Handbook (Thorogood Publishing) and editor of Pensions Benefits Law Reports. He is Chairman of the NAPF and Visiting Professor in Pensions Law and Economics at Cass Business School, City University London.

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Paperback ISBN-10: 1 85418 430 x
ISBN-13: 978 185418430 6
Pages: 248
Size: 215x125
GBP 20.00
EUR 23.99
USD 48.95
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