Well, it’s here. After five years of research, over five thousand documents of public pension plan meeting minutes analyzed and culled for data, over 2,500 legal cases examined, hundreds of human hours spent researching, analyzing and modeling, 43 hours of course work, four research analysts working part-time over 2.5 years, one review committee of six experts from governance, finance, law, psychology, economics and philosophy, we did it. We can now measure the governance of asset owners (pensions, endowments, foundations and other dedicated funds). What’s more is not only can we measure governance, but we can relate this to – and even, in part, predict – investment returns, bond yield spreads and funding ratios, specifically as it relates to pensions.
In many ways, our industry is at an inflection point. We will either adapt successfully or become less relevant. As we seek to fulfill our mission of leading the investment profession, we have an opportunity to demonstrate to the broader investment community our understanding of the key issues and help shape the dialogue going forward. – Paul Smith, CEO, CFA Institute