Future of Pension Management

KEITH P. AMBACHTSHEER is Director Emeritus of the International Centre for Pension Management at the Rotman School of Management, University of Toronto, and President of KPA Advisory Services, which provides strategic advice to a global clientele of pension and investment organizations. He is the author of three bestselling books and has been a regular contributor to industry journals since the 1970s.

• Preface xiPart One TouchstonesChapter 1 Improved Pension Designs and Organizations: Gateways to a More Functional Capitalism 3Chapter 2 Pension Plans for the Masses: Good Idea or Pipe Dream? 11Chapter 3 Does Institutional Investing Have a Future? 17Chapter 4 Thomas Piketty’s Capital in the 21st Century: Its Relevance to Pension Fund Management 25Part Two Pension DesignChapter 5 Why We Need to Change the Conversation about Pension Reform 33Chapter 6 On the Costing and Funding of Defined-Benefit Pensions: Separating Fact and Fiction 41Chapter 7 Defining Defined-Ambition Pension Plans: Conclusions from an International Conversation 49Chapter 8 What Are Target-Benefit Plans and Why Should You Care? 55Chapter 9 Designing 21st-Century Pension Plans: We’re Making Progress! 61Part Three Pension GovernanceChapter 10 How Effective Is Pension Fund Governance Today?: Findings from a New Survey 69Chapter 11 The Evolving Meaning of Fiduciary Duty: Is Your Board of Trustees Keeping Up? 81Chapter 12 Pension Organizations and Integrated Reporting: Improving Stakeholder Communications 87Chapter 13 Measuring Value-for-Money in Pension Organizations: A New Look 93Chapter 14 Measuring Value for Money in Private Markets Investing: Why Investors Need a Standard Protocol 101Chapter 15 How Pension Funds Pay Their Own Investment People 107Chapter 16 Investment Beliefs and Organization Design: Are They Aligned in Your Organization? 127Chapter 17 Norway versus Yale—or versus Canada?: A Comparison of Investment Models 133Chapter 18 Does Culture Matter in Pension Organizations? 141Part Four Pension InvestingChapter 19 Are Investment Returns Predictable? 151Chapter 20 Investment Returns in the 21st Century 157Chapter 21 Long-Termism as the Dominant Investment Paradigm 163Chapter 22 Investing for the Long Term I: From Saying to Doing 169Chapter 23 Investing for the Long Term II: How Should We Measure Performance? 177Chapter 24 Investing for the Long Term III: Does It Produce Better Outcomes? 183Chapter 25 Are Alphas and Betas Bunk? 189Chapter 26 Risk Management Revisited 195Chapter 27 From an Unknown to a Known: Managing Climate Change Risk 201Conclusion 207Notes 209About the Author 219Index 221

"Ambachtsheer's precise and clear discussion of the issues is a valuable contribution to furthering their message and, by extension, the interests of long-term savers." (Investments & Pensions Europe, April 2016)