Dear CFA Society President,
Did you know that one of the most important constituent of the investment community has very few places to turn for help in understanding their roles and decision making responsibilities? They are the investment trustees who sit at the top of the pyramid of private and public pension funds, endowments, foundations, Taft-Hartley funds, insurance companies and other pools of large assets. What these funds have in common is a reliance on their trustees to provide policy direction and oversight of their investment programs.
Most investment trustees have had successful careers, but not necessarily in the investment field. Gaining an understanding and a solid grasp of the investment principles that will allow them to exercise good judgment in decisions for which they are responsible can be a challenging experience. There are few resources to which trustees can turn for help.
In response to this void, The Research Foundation of CFA Institute has published a book, A Primer for Investment Trustees. The book provides a comprehensive discussion of issues that involve investment policy, investment objectives, investment risk tolerance, investment assets, performance evaluation, governance, fund mission and ethics. The book is an "easy read," avoiding the use of complex investment terminology, which is particularly helpful to trustees who have other full-time jobs, as most do.
Although the book’s main audience is investment trustees, it also can be beneficial to investment professionals and other parties who work directly or indirectly with trustees, such as a fund's staff, investment managers, actuaries, accountants, custodians, lawyers, and others. All these groups can benefit by understanding the investment trustee’s perspective, circumstances, and responsibilities. Such an understanding will facilitate communications and allow all parties to work together more effectively.
The Primer was co-authored by Jeffery V. Bailey, CFA, director, Financial Benefits & Analysis at Target Corporation; Jesse L. Phillips, CFA, a member of the Treasurer’s Office of the University of California Regents and Thomas M. Richards, CFA, chairman of the Research Foundation Board of Trustees and a consultant to the Nuveen HydePark Group. The 120-page book is available free in PDF form from the Research Foundation’s website, www.cfapubs.org/loi/rf, as well as from Amazon.com in paperback for $9.95 or in electronic format for 99 cents.
We welcome the opportunity to help you make this important educational document available to members of your society as well as other interested parties in your local investment community. Please feel free to contact me to discuss how we can work together.
Sincerely,
Bud Haslett
Executive Director
The Research Foundation of the CFA Institute