Csp Q29

Front 1

QBS 29: 1 of 8
Investment Management Process

Plan fiduciary responsibilities

Back 1

1) Ensure investment decisions are soundly made
2) Regularly monitor and evaluate investment performance
3) Exercise the care, diligence, and skill that a pension of ordinary prudence would

Front 2

QBS 29: 2 of 8
Investment Management Process

Pension Investment Management System

Back 2

1) Governance
2) Investment beliefs
3) Asset mix policy
4) Manager structure
5) Manager search/selection
6) Investment policy statement
7) Manger monitoring

Front 3

QBS 29: 3-6 of 8
Investment Management Process - IPS

The DB investment policy should incorporate the following items?
(1-4 of 4)

Back 3

1) Its purpose
2) Governance
3) Investment manager structure and mandates
4) Requirements and restrictions regarding investment instruments
a) Permitted investment constraints
5) Risk tolerance guidelines
6) Asset mix policy and ranges
a) Including a system that ensures compliance to policy mix and constraints
7) Policies regarding:
a) Rebalancing policy
b) Derivatives
c) Conflict of interests
d) Voting rights
e) Securities lending
f) Soft dollar
8) Description of plan and obligations, and their investment implications
a) Outline types of benefits offered
b) Describe level of protection from inflation
c) Liability profile
d) Financial position of plan
e) Liquidity requirements
f) Workforce demographics
9) Allocation of responsibilities among fiduciaries
10) Time period for measuring performance against objectives
11) Possibility of plan termination
12) Investment objectives of fund and managers
13) Valuation of investments
14) Policy review
15) Other considerations (e.g. additional guidelines if using a pooled fund)

Front 4

QBS 29: 7 of 8
Investment Management Process - IPS

Should consider the following when making a long-term asset mis policy

Back 4

1) Objectives for the level of funding contribution and volatility
2) The real and nominal durations of the termination and ongoing liability
3) Relationship between the going concern funding and expensing liabilities
4) Nature of and trade-offs between short-term and long-term risk
5) Equity constraints to make benchmark consistent with the client's overall risk tolerance and real return objectives

Front 5

QBS 29: 8 of 8
Investment Management Process - IPS

IPS considerations for DC plans

Back 5

1) Purpose
2) Plan overview and investment implications
a) Whether or not the plan members contribute, if so then the general level/choice of contributions
b) Level of matching er contributions
c) Investment choices offered to plan members
3) Governance
4) Investment beliefs
5) All the remaining sections in the DB IPS outline