The Trustee Governance Guide: The Five Imperatives of 21st Century Investing

ISBN-13: 9783030210908 / Angielski / Miękka / 2020 / 140 str.

Christopher K. Merker; Sarah W. Peck

Spis treści

Chapter 1: Introduction

 

The First Imperative: Be Well-Governed

 

            Chapter 2: Crisis

 

            Chapter 3: Fiduciary Duty

 

            Chapter 4: Good Governance

 

                        Practitioner Focus: Board Self-Assessment

 

The Second Imperative: Be Knowledgeable and Beware of Common Errors

 

            Chapter 5 – Human Error and Behavioral Finance

 

                        Practitioner Focus – How Much Endowment is Enough?

 

            Chapter 6 – Knowledge Not Just for Knowledge’s Sake

 

            Chapter 7 – Origins of Financial Illiteracy

 

Practitioner Focus: Investment 101 and Foundation Board Basics

 

The Third Imperative: Be Diversified

 

            Chapter 8 – 30,000 Products

 

                        Practitioner Focus – Cryptocurrencies

 

            Chapter 9 – Theory Time

 

                        Practitioner Focus – Return Targeting

 

            Chapter 10 – Over-diversification

 

                        Practitioner Focus – Why Over-complicate Things?

 

The Fourth Imperative: Be Disciplined and Control Costs

 

            Chapter 11 – The Active vs. Passive Debate

 

Chapter 12 – Active vs. Passive-The Evidence

 

Chapter 13 – Cost Savings and What Really Matters

 

Practitioner Focus – Fee and Expense Reports: What to ask your Consultant for on an Annual Basis

 

The Fifth Imperative: Be Impactful

 

            Chapter 14 – Farewell to Uncle Milt

 

Practitioner Focus – Doesn’t ESG Investing Pose a Conflict with Fiduciary Duty?

 

            Chapter 15 – ESG Challenges

 

Practitioner Focus – What Exactly is the Difference between SRI and ESG?

 

            Chapter 16 – Ok, I’ve Bought In…Now What?

 

Practitioner Focus – Writing ESG into your Investment Policy

O autorze

Christopher K. Merker is a Financial Advisor and a Director of Private Asset Management at Robert W. Baird & Co. Incorporated, where he provides advice and guidance to the boards and investment committees of institutional investors. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University. He is past president of the CFA Society Milwaukee, and a founder and current board member of the CFA Society Milwaukee Foundation, a sister organization dedicated to promoting financial literacy. An adjunct professor of finance at Marquette University where he teaches the investment course Sustainable Finance, he is also executive director of Fund Governance Analytics, a provider of environmental, social, and governance (ESG) research and diagnostic tools for asset owners and institutional investors. He publishes Sustainable Finance, which covers current topics around governance and sustainability in investing.

Sarah W. Peck is an Associate Professor of Finance at Marquette University. Sarah earned her undergraduate degree from Yale University and a PhD from the University of Rochester. She has spent two decades researching topics in corporate governance with a focus on the board of directors publishing in The Journal of Financial Economics, The Journal of Corporate Finance, The Journal of Forensic Accounting, among others. She is director of research at Fund Governance Analytics, where she leads research into environmental, social, and governance (ESG) factors. She wrote the book Investment Ethics (2010) and pioneered an investment ethics course for CFA® educational partners. Following the 2006 pension scandal, she joined the Milwaukee County Pension board where she served as a trustee and chair of the Investment Committee for seven years.  She regularly participates in panel discussions with trustees of pension funds and endowments on topics around integration of ESG into investment strategies.

Blurb

More than 80% of the financial assets in the United States fall under the purview of a trustee. That's a big responsibility for an estimated 1% (around 1.5 million people) of the U.S. working population charged with overseeing investments for millions and millions of beneficiaries, public sector, and non-profit organizations. In a world proliferated by investment products, increasingly dominated by indexes, faced—particularly in the pension world—with increasing liabilities, more regulation, and a growing number of social and sustainability objectives, what's a trustee to do?

The Trustee Governance Guide is here to help guide today’s board trustee through the brave new world of 21st century investing. The book focuses on the critical aspects of the Five Imperatives: Governance, Knowledge, Diversification, Discipline, and Impact. 

Based on more than a decade of research, practice, and discussions with many key decision makers and influencers across the industry, this book addresses the many topics related to better governance, greater mission-driven financial performance, and impact. The questions the book addresses include: 

·         What is good governance, how do we know it when we see it, and why does it matter?

·         How much knowledge is necessary to be a competent board member?

·         How big should my endowment be?

·         What are the key elements of a diversified portfolio?

·         How much does cost matter?

·         What's the difference between socially responsible and ESG investing?

·         Can I focus on sustainability and still be a good fiduciary?

This book provides a way for boards to improve and benchmark their own governance performance alongside their peers, and uniquely covers related investment topics in each chapter.