For over three decades,
indexing has become increasingly accepted by both institutional and individual
investors. Index benchmarks and investment products that track them have been a
driving force in the transformation of investment strategy from art to science. Yet
investors' understanding of the sophistication of this burgeoning field has lagged the
growing use of index products.
Active Index Investing is
the definitive guide to how indexes are constructed, how index-based portfolios are
managed, and how the world's most sophisticated investors use index-based strategies to
enhance performance, reduce costs and minimize the risks of investing.
Active Index Investing
provides a comprehensive overview of (1) the investment theories that are the foundation
of index based investing, (2) best practices in benchmark construction, (3) the growing
world of index-based investment vehicles, (4) cutting-edge index portfolio management
techniq ues and (5) the myriad ways investors can and do capture the benefits of indexing.
Active Index Investing has a
unique format that captures the views and perspectives of over 40 of the investment
industry's leading experts and practitioners, while maintaining a holistic view of this
complex subject matter. In addition to the Appendix and Glossary within the book, it
features an E-ppendix, available at www.IndexUniverse.com
Steven A. Schoenfeld is the
Founder and Editor-in-Chief of IndexUniverse.com, the definitive online resource on index
investing. He is also a Senior Research Fellow with Duke University's Global Capital
Markets Center, and Managing Partner of Global Index Strategies LLC, which provides
consulting services to the financial industry. Steven was Chief Investment Officer of
Active Index Advisors, focusing on enhanced index portfolios and was a Managing Director
of Barclays Global Investors (BGI), where he served in a variety of portfolio management
and investment strategy roles. Before joining BGI, he was an Investment Officer at the
International Finance Corporation/World Bank, and a stock index futures trader in
Singapore. Steven was a Fulbright Scholar in Economics, and co-authored The Pacific Rim
Futures and Options Markets.
Hardcover 720 pages
FOREWORD: THE ROLE OF
INDEXING AND BENCHMARKS IN DEVELOPING SOUND INVESTMENT APPROACHES (Don Phillips).
PREFACE.
ACKNOWLEDGMENTS.
CONTRIBUTORS.
ABOUT THE EDITOR.
CHAPTER 1: Indexing
IsActive: The Meaning of Active Indexingand the Interconnected Themes of the Book (Steven
A. Schoenfeld).
PART ONE: The Indexing
Revolution: Theory and Practice (Steven A. Schoenfeld).
CHAPTER 2: The Foundations
of Indexing: Theoretical and Practical Underpinnings of a Heretical Concept (Binu George,
Steven A. Schoenfeld, and Jim Wiandt).
CHAPTER 3: The Ever-Evolving
Uses of Indexing: Why the Active versus Index Debate Is Over (Matthew Scanlan, Binu
George, Francis Enderle, and Steven A. Schoenfeld).
CHAPTER 4: Market
Uncertainty and the Role of Indexing (Adele Kohler).
PART TWO: Benchmarks: The
Foundation for Indexing (Steven A. Schoenfeld).
CHAPTER 5: The Vital
Importance and Fundamental Uses of Benchmarks (Pamela Cloyd, Larry Siegel, and Steven A.
Schoenfeld).
CHAPTER 6: Perfection
Impossible: Best Practices for Index Construction (Steven A. Schoenfeld).
CHAPTER 7: The Ideal Index
Construction (Gus Sauter).
CHAPTER 8: U.S. Equity
Benchmarks-Broad-Cap, Size, and Style Indexes: Slicing and Dicing the U.S. Equity Market
(Gardner Platt, Brad Pope, and Chad Rakvin).
CHAPTER 9:
International/Global Equity Benchmarks for North American Investors (Steven A. Schoenfeld
and Robert Ginis).
CHAPTER 10: Fixed-Income
Benchmarks (Vache Mahseredjian and Mark Friebel).
CHAPTER 11: Hedge Fund
Benchmarks and Asset Allocation (Mark Anson).
CHAPTER 12: Using Indexes as
Analytical Tools: Viewing Changes in the World's Stock Markets through the Benchmarks
(Mark Sladkus).
CHAPTER 13: Socially
Responsible Investment and Index Benchmarks (Peter Wall).
PART THREE: The
Ever-Expanding Variety and Flexibility of Index Products (Steven A. Schoenfeld).
CHAPTER 14: The Wide World
of Index Products: Building Blocks for an Efficient Portfolio (Steven A. Schoenfeld and
Joy Yang).
CHAPTER 15: Enhanced
Indexing: Adding Index Alpha in a Disciplined, Risk-Controlled Manner (Steven A.
Schoenfeld and Joy Yang).
CHAPTER 16: Exchange-Traded
Funds: A Flexible and Efficient Investment Tool (Yigal Jhirad, Omer Ozkul, and David
Qian).
CHAPTER 17: Indexing Real
Estate (James S. Keagy).
CHAPTER 18: Active Indexing:
Sophisticated Strategies with Index Vehicles (Steven A. Schoenfeld, Robert Ginis, and
Niklas Nordenfelt).
PART FOUR: Managing Index
Funds: It's Anything but Passive! (Steven A. Schoenfeld).
CHAPTER 19: Fundamental
Index Portfolio Management Techniques (Steven A. Schoenfeld and Kevin Maeda).
CHAPTER 20: The Unique
Challenges of U.S. Equity Index Management (Amy Schioldager, Will Hahn, Ed Hoyt, and Jane
Leung).
CHAPTER 21: Delivering
Performance in International Equity Indexing (Eleanor de Freitas, Robert Ginis, Creighton
Jue, Tom McCutchen, Steven A. Schoenfeld, and Amy Whitelaw).
CHAPTER 22: Managing
Fixed-Income Index Funds (Elizabeth Para and Partha Dasgupta).
CHAPTER 23: Managing
Exchange-Traded Funds (Lisa Chen and Patrick O'Connor).
CHAPTER 24: Index-Based
Separately Managed Accounts: Delivering on the Performance Promise (Mark Adams, Kevin
Maeda, and Steven A. Schoenfeld).
PART FIVE: Pulling It All
Together: How to Use Index Products to Build an Efficient, Risk-Controlled Investment
Strategy (Steven A. Schoenfeld).
CHAPTER 25: Choosing among
Index Vehicles: How Does an Institutional Investor Select an Investment Product? (Joanne
Hill and Barbara Mueller).
CHAPTER 26: How and Why
Large Pension Plans Use Index-Based Strategies as Their Core Investments (Nancy Calkins).
CHAPTER 27: Tax-Efficient
Indexation (Mark A. Zurack).
CHAPTER 28: Indexing for
Advisors: A Sophisticated Strategy for Professional Investment Advisors and Their Clients
(Michael J. Chasnoff).
CHAPTER 29: Indexing for
Individual Investors (Greg Baer and Gary Gensler).
CHAPTER 30: Indexing at the
Core: The Four Key Axioms for Long-Term Investment Success (Steven A. Schoenfeld).
CHAPTER 31: The Future of
Indexing: The Revolution Has Just Begun! (Steven A. Schoenfeld).
GUIDE TO THE E-PPENDIX:
www.ActiveIndexInvesting.com, Partnered with IndexUniverse.com.
ABRIDGED GLOSSARY OF
INDEXATION AND QUANTITATIVE INVESTMENT TERMINOLOGY.
ABRIDGED BIBLIOGRAPHY AND
RESEARCH RESOURCES.
INDEX.