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Index
Cover About the Authors Acknowledgments Preface
SUPPLEMENTS ENDNOTE
CHAPTER 1: Introduction
1.1 INTRODUCTION TO THE INVESTMENT INDUSTRY 1.2 WHAT IS A PORTFOLIO MANAGER? 1.3 WHAT INVESTMENT PROBLEMS DO PORTFOLIO MANAGERS SEEK TO SOLVE? 1.4 SPECTRUM OF PORTFOLIO MANAGERS 1.5 LAYOUT OF THIS BOOK PROBLEMS ENDNOTES
CHAPTER 2: Client Objectives for Diversified Portfolios
2.1 INTRODUCTION 2.2 DEFINITIONS OF RISK 2.3 THE PORTFOLIO MANAGEMENT PROCESS AND THE INVESTMENT POLICY STATEMENT 2.4 INSTITUTIONAL INVESTORS 2.5 INDIVIDUAL INVESTORS 2.6 ASSET CLASS PORTFOLIOS SUMMARY PROBLEMS ENDNOTES
CHAPTER 3: Asset Allocation: The Mean - Variance Framework
3.1 INTRODUCTION: MOTIVATION OF THE MEAN–VARIANCE APPROACH TO ASSET ALLOCATION 3.2 THEORY: OUTLINE OF THE MEAN–VARIANCE FRAMEWORK 3.3 PRACTICE: SOLUTION OF STYLIZED PROBLEMS USING THE MEAN–VARIANCE FRAMEWORK SUMMARY PROBLEMS APPENDIX 1: RETURNS, COMPOUNDING, AND SAMPLE STATISTICS APPENDIX 2: OPTIMIZATION APPENDIX 3: NOTATION ENDNOTES
CHAPTER 4: Asset Allocation Inputs
4.1 SENSITIVITY OF THE MEAN–VARIANCE MODEL TO INPUTS 4.2 CONSTANT INVESTMENT OPPORTUNITIES 4.3 TIME-VARYING INVESTMENT OPPORTUNITIES SUMMARY PROBLEMS APPENDIX: MIXED ESTIMATION WITH MULTIPLE ASSETS ENDNOTES
CHAPTER 5: Advanced Topics in Asset Allocation
5.1 INTRODUCTION 5.2 HORIZON EFFECTS IN THE M-V FRAMEWORK 5.3 DYNAMIC PROGRAMMING 5.4 SIMULATION 5.5 ASSET ALLOCATION WITH ACTIVE MANAGERS 5.6 PORTFOLIO INSURANCE SUMMARY PROBLEMS APPENDIX 1: THE ESTIMATED VAR1 MODEL APPENDIX 2: DP SOLUTION OF THE MEAN REVERSION MODEL ENDNOTES
CHAPTER 6: The Investment Management Process
6.1 INTRODUCTION 6.2 THE EFFICIENT MARKET HYPOTHESIS (EMH) 6.3 GENERAL DISCUSSION OF INVESTMENT STRATEGIES 6.4 THE FIVE KEY ELEMENTS OF THE INVESTMENT PROCESS 6.5 THE IMPORTANCE OF QUALITY CONTROL AND OTHER RECOMMENDATIONS 6.6 A SAMPLE INVESTMENT STRATEGY: THE SRY MODEL SUMMARY PROBLEMS ENDNOTES
CHAPTER 7: Introduction to Equity Portfolio Investing: The Investor's View
7.1 INTRODUCTION 7.2 EQUITY STRATEGIES 7.3 SELECTING THE EQUITY MIX 7.4 ALTERNATIVE EQUITY MIXES 7.5 THE EQUITY MANAGEMENT BUSINESS 7.6 IMPLEMENTING THE EQUITY MIX 7.7 EQUITY PORTFOLIO INVESTMENT OBJECTIVES SUMMARY PROBLEMS ENDNOTES
CHAPTER 8: Equity Portfolio Construction
8.1 INTRODUCTION 8.2 PASSIVE VERSUS ACTIVE MANAGEMENT 8.3 PASSIVE PORTFOLIO CONSTRUCTION 8.4 GOALS FOR ACTIVE MANAGEMENT 8.5 SECTOR MANAGEMENT 8.6 STYLE AND SECTOR MANAGEMENT 8.7 IDENTIFYING STYLE 8.8 SAMPLE ACTIVE PORTFOLIO SUMMARY PROBLEMS ENDNOTES
CHAPTER 9: Fixed-Income Management
9.1 INTRODUCTION 9.2 FIXED-INCOME MARKETS, INSTRUMENTS, AND CONCEPTS 9.3 FIXED-INCOME MANDATES 9.4 PASSIVE MANAGEMENT 9.5 ACTIVE MANAGEMENT 9.6 STRUCTURED PORTFOLIOS SUMMARY PROBLEMS ENDNOTES
CHAPTER 10: Global Investing
10.1 INTRODUCTION 10.2 INVESTING WITH A GLOBAL PERSPECTIVE 10.3 GLOBAL INVESTMENT OPPORTUNITIES 10.4 THE IMPACT OF CURRENCY 10.5 INTERNATIONAL DIVERSIFICATION: FAILURE TO DELIVER? 10.6 IMPLICATIONS OF GLOBALIZATION 10.7 CURRENCY OVERLAYS: INCENTIVE-COMPATIBLE PERFORMANCE EVALUATION SUMMARY PROBLEMS ENDNOTES
CHAPTER 11: Alternative Investment Classes
11.1 INTRODUCTION 11.2 HEDGE FUNDS 11.3 VENTURE CAPITAL AND PRIVATE EQUITY 11.4 REAL ESTATE 11.5 COMMODITIES 11.6 ALTERNATIVES MANAGER SELECTION 11.7 ALLOCATING ASSETS INCLUDING ALTERNATIVES SUMMARY PROBLEMS APPENDIX: SOURCES FOR RETURN SERIES ENDNOTES
CHAPTER 12: Portfolio Management Through Time: Taxes and Transaction Costs
12.1 INTRODUCTION 12.2 PERFORMANCE SHORTFALL 12.3 PORTFOLIO ADJUSTMENTS WITHOUT TAXES OR COSTS 12.4 TRANSACTION COSTS 12.5 TAXATION OF INVESTMENT RETURNS IN THE UNITED STATES 12.6 STRATEGIES TO REDUCE INDIVIDUAL INVESTOR TAXES 12.7 TAX MANAGING A PORTFOLIO OF SECURITIES SUMMARY PROBLEMS ENDNOTES
CHAPTER 13: Performance Measurement and Attribution
13.1 INTRODUCTION 13.2 PERFORMANCE MEASUREMENT 13.3 PERFORMANCE ATTRIBUTION 13.4 PERFORMANCE APPRAISAL: INCENTIVE EFFECTS SUMMARY PROBLEMS APPENDIX: CALCULATION OF RISK MEASURES ENDNOTES
CHAPTER 14: Incentives, Ethics, and Policy
14.1 INTRODUCTION 14.2 THE INVESTMENT COMPANY BUSINESS MODEL 14.3 INCENTIVES FOR BUSINESSPEOPLE AND PORTFOLIO MANAGERS 14.4 ETHICAL SITUATIONS 14.5 INDUSTRY GUIDELINES FOR GOOD BUSINESS PRACTICES 14.6 INTERNAL COMPANY POLICIES TO PROTECT THE FRANCHISE 14.7 EFFECTIVE MANAGER AND ANALYST COMPENSATION POLICIES SUMMARY PROBLEMS APPENDIX: SAMPLE LIST OF INVESTMENT POLICIES ENDNOTES
CHAPTER 15: Investor and Client Behavior
15.1 INTRODUCTION 15.2 THEORY AND OBSERVATIONS OF HUMAN BEHAVIOR 15.3 IMPLICATIONS FOR ACTIVE MANAGEMENT 15.4 IMPLICATIONS FOR SETTING INVESTMENT POLICY 15.5 IMPLICATIONS FOR MANAGER SELECTION SUMMARY PROBLEMS ENDNOTES
CHAPTER 16: Managing Client Relations
16.1 INTRODUCTION 16.2 GENERAL RECOMMENDATIONS FOR CLIENT MANAGEMENT 16.3 MEETING CLIENT NEEDS 16.4 MANAGER SELECTION PROCESS 16.5 SECURING NEW CLIENTS 16.6 RETAINING CLIENTS 16.7 CASE STUDY SUMMARY PROBLEMS ENDNOTES
Sample Cases Jerry W.
PRIVATE WEALTH CASE: DESIGNING AN INVESTMENT PLAN FOR JERRY W. APPENDICES INVESTOR QUESTIONNAIRE ENDNOTES
MSSI
DEFINED BENEFIT PLAN CASE: DESIGNING THE INVESTMENT STRUCTURE FOR MSSI CORPORATION'S DEFINED BENEFIT PLAN
McClain Capital
DEFINED CONTRIBUTION PLAN CASE: DESIGNING A CUSTOM DEFINED CONTRIBUTION PLAN
The Fairbanks Fund
FUND CASE: THE FAIRBANKS SMALL-CAP U.S. EQUITY FUND WHITTIER WEALTH MANAGEMENT: FAIRBANKS SMALL-CAP EQUITY FUND
Glossary References Index End User License Agreement
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