Managing Investment Portfolios: A Dynamic Process, 3rd Edition

by Editor: John L. Maginn; Editor: Donald L. Tuttle; Editor: Dennis W. McLeavey (AIMO ); Editor: Jerald E. Pinto (TRM Services )

• ISBN13: 9780470117163
• ISBN10: 0470117168
• Format: eBook
• Copyright: 2007-03-01
• Publisher: Wiley

Summary

"A rare blend of a well-organized, comprehensive guide to portfolio management and a deep, cutting-edge treatment of the key topics by distinguished authors who have all practiced what they preach. The subtitle, A Dynamic Process, points to the fresh, modern ideas that sparkle throughout this new edition. Just reading Peter Bernstein's thoughtful Foreword can move you forward in your thinking about this critical subject." -Martin L. Leibowitz, Morgan Stanley "Managing Investment Portfolios remains the definitive volume in explaining investment management as a process, providing organization and structure to a complex, multipart set of concepts and procedures. Anyone involved in the management of portfolios will benefit from a careful reading of this new edition." -Charles P. Jones, CFA, Edwin Gill Professor of Finance, College of Management, North Carolina State University

Table of Contents

Foreword

Preface

Acknowledgments

Introduction

The Portfolio Management Process and the Investment Policy Statement

Introduction

Investment Management

The Portfolio Perspective

Portfolio Management as a Process

The Portfolio Management Process Logic

The Planning Step

The Execution Step

The Feedback Step

A Definition of Portfolio Management

Investment Objectives and Constraints

Objectives

Constraints

The Dynamics of the Process

The Future of Portfolio Management

The Ethical Responsibilities of Portfolio Managers

Managing Individual Investor Portfolios

Introduction

CaseStudy

The Inger Family

Inger Family Data

Jourdan's Findings and Personal Observations

Investor Characteristics

Situational Profiling

Psychological Profiling

Investment Policy Statement

Setting Return and Risk Objectives

Constraints

An Introduction to Asset Allocation

Asset Allocation Concepts

Monte Carlo Simulation in Personal Retirement Planning

Managing Institutional Investor Portfolios

Overview

PensionFunds

Defined-Benefit Plans: Background and Investment Setting

Defined-Contribution Plans: Background and Investment Setting

Hybrid and Other Plans

Foundations and Endowments

Foundations: Background and Investment Setting

Endowments: Background and Investment Setting

The Insurance Industry

Life Insurance Companies: Background and Investment Setting

Non-Life Insurance Companies: Background and Investment Setting

Banks and Other Institutional Investors

Banks: Background and Investment Setting

Other Institutional Investors: Investment Intermediaries

Capital Market Expectations

Introduction

Organizing the Task: Framework and Challenges

A Framework for Developing Capital Market Expectations

Challenges in Forecasting

Tools for Formulating Capital Market Expectations

Formal Tools

Survey and Panel Methods

Judgment

Economic Analysis

Business Cycle Analysis

Economic Growth Trends

Exogenous Shocks

International Interactions

Economic Forecasting

Using Economic Information in Forecasting Asset Class Returns

Information Sources for Economic Data and Forecasts

Asset Allocation

Introduction

What is Asset Allocation?

The Role of Strategic Asset Allocation in Relation to Systematic Risk

Strategic versus Tactical Asset Allocation

The Empirical Debate on the Importance of Asset Allocation

Asset Allocation and the Investor's Risk and Return Objectives

Asset-Only and Asset/Liability Management Approaches to Strategic Asset Allocation

Return Objectives and Strategic Asset Allocation

Risk Objectives and Strategic Asset Allocation

Behavioral Influences on Asset Allocation

The Selection of Asset Classes

Criteria for Specifying Asset Classes

The Inclusion of International Assets (Developed and Emerging Markets)

Alternative Investments

The Steps in Asset Allocation

Optimization

The Mean-Variance Approach

The Resampled Efficient Frontier

The Black&

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