ASSET - LIABILITY MANAGEMENT and THE TWILIGHT OF TRADITIONAL ANALYSIS



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Q AUTUMN 2004 SEMINAR PROGRAM La Quinta Resort Club, La Quinta, California Sunday, October 17, 2004 to Wednesday, October 20, 2004 ASSET - LIABILITY MANAGEMENT THE INSTITUTE FOR QUANTITATIVE RESEARCH IN FINANCE The Q-Group www.q-group.org

AUTUMN, 2004 - PROGRAM OUTLINE La Quinta Resort Club, La Quinta, California October 17 - October 20, 2004 Sunday, October 17 5:00 pm - 7:00 pm RECEPTION AND DINNER 7:00 pm - 7:15 pm WORDS OF WELCOME James L. Farrell, Jr., Chairman of the Institute Managing Director, Farrell Investment Management, Inc. 7:15 pm - 8:00 pm INVESTMENT IMPLICATIONS OF THE ELECTION Speaker: Greg Valliere, Chief Strategist Washington Research Group Monday, October 18 7:30 am - 9:00 am CONTINENTAL BREAKFAST 9:00 am - 10:15 am A MODERN FINANCE APPROACH TO THE TRADEOFF BETWEEN PURSUING COMPARATIVE ADVANTAGE AND EFFICIENT RISK DIVERSIFICATION Speaker: Robert C. Merton, John Natty McArthur University Professor, Harvard Business School 10:15 am - 10:45 am COFFEE BREAK 10:45 am - 12:00 pm ASSET ALLOCATION DECISIONS AND SPONSOR VALUATION Speaker: Andre Perold, Professor of Financial Management, Harvard Business School 12:00 pm - 4:00 pm LUNCHEON AND PERSON-TO-PERSON CONFERENCES 4:00 pm - 5:15 pm PENSION RISK MANAGEMENT: ADAPTING AN ANALYTICAL FRAMEWORK FOR PRACTICAL APPLICATION IN MODELING THE PENSION LIABILITY Speakers: Jess Yawitz, Chairman CEO, NISA Investment Advisors, L.L.C. William Marshall, President, NISA Investment Advisors, L.L.C 5:15 pm - 5:45 pm COFFEE BREAK 5:45 pm - 7:00 pm ASSET / LIABILITY MANAGEMENT: THEORY AND PRACTICE Speaker: William F. Sharpe, Professor of Finance Emeritus, Stanford University Fellow of the Institute 7:00 pm RECEPTION 8:00 pm THE Q-GROUP MONDAY NIGHT EVENT FOR ALL! Hosts: The Q-Group Membership Committee the Board of Directors

THE INSTITUTE FOR QUANTITATIVE RESEARCH IN FINANCE Tuesday, October 19 7:30 am - 8:45 am CONTINENTAL BREAKFAST AUTUMN, 2004 - PROGRAM OUTLINE La Quinta Resort Club, La Quinta, California 8:45 am - 10:00 am THE ECONOMICS OF EARNINGS OBSESSION Speaker: Alfred Rappaport, Leonard Spacek Professor Emeritus Northwestern University 10:00 am - 10:30 am COFFEE BREAK 10:30 am - 11:45 am THE ECONOMIC IMPLICATIONS OF CORPORATE FINANCIAL REPORTING Speaker: Campbell Harvey, J. Paul Sticht Professor of International Business Duke University 11:45 am - 12:15 pm ANNUAL MEETING OF THE INSTITUTE 12:15 pm - 4:00 pm LUNCHEON AND PERSON-TO-PERSON CONFERENCES 4:00 pm - 5:15 pm ACCOUNTING AND STOCK SELECTION: A SURVEY Speaker: Brett Trueman, Professor of Accounting, Anderson Graduate School of Management, UCLA 5:15 pm - 5:45 pm COFFEE BREAK 5:45 pm - 7:00 pm THE ASSESSMENT AND IMPLICATIONS OF EARNINGS QUALITY: AN INVESTOR S PERSPECTIVE Speaker: Linda Vincent, Associate Professor, Kellogg School of Management Northwestern University 7:00 pm RECEPTION Wednesday, October 20 7:00 am - 8:00 am CONTINENTAL BREAKFAST 8:00 am - 9:15 am COMOVEMENT Speaker: Nicolas Barberis, Professor of Finance, Yale School of Management 9:15 am - 9:45 am COFFEE BREAK 9:45 am - 11:00 am SECONDARY TRADING COSTS IN THE MUNICIPAL BOND MARKET Speaker: Lawrence Harris, Fred V. Keenan Chair in Finance Marshall School of Business, USC 11:00 am ADJOURNMENT THE NEXT SEMINAR WILL BE HELD ON APRIL 3-6, 2005 SEE YOU AT THE OCEAN REEF CLUB, KEY LARGO, FLORIDA

Q BOARD OF DIRECTORS James L. Farrell, Jr., Chairman of the Institute Farrell Investment Management, Inc. William L. Fouse, Vice-Chairman of the Institute Mellon Capital Management Corp. Dale Berman, Secretary-Treasurer of the Institute Robert D. Arnott, Research Affiliates, LLC Gilbert L. Beebower, SEI Investments Robert E. Butman, TQA Investors, LLC Jon Ender, ABN Amro Asset Management H. Gifford Fong, Gifford Fong Associates Robert L. Hagin, Hagin Investment Research, Inc. Gilbert Hammer, Wilshire Associates, Incorporated Mark Kritzman, Windham Capital Management Boston Martin L. Leibowitz,* Morgan Stanley, Institute Fellow Patricia A. Pinkos, California Public Employees Retirement System Andrew Rudd, BARRA, Inc. James H. Scott, Quantitative Management Associates, LLC Jack L. Treynor*, Treynor Capital Management, Inc., Institute Fellow Wayne H. Wagner, Plexus Group, Inc. Arnold S. Wood, Martingale Asset Management, L.P. *ex-officio Robert L. Whalen, Administrative Director James M. Coakley, Program Administrator Robert E. Shultz, Membership Director Lawrence Harris, Research Coordinator of the Institute, Fred V. Keenan Chair in Finance at USC J. Peter Williamson, Seminar Summarizer, Amos Tuck School, Dartmouth College SPONSORS OF THE INSTITUTE ABN AMRO ASSET MANAGEMENT + ACADIAN ASSET MANAGEMENT + ALLIANCE CAPITAL MANAGEMENT, L.P. + ANALYTIC INVESTORS + AQR CAPITAL MANAGEMENT, LLC + AT&T INVESTMENT MANAGEMENT CORPORATION + AXA ROSENBERG + BANC OF AMERICA CAPITAL MANAGEMENT, INC. + BANC ONE INVESTMENT ADVISORS + BARCLAYS GLOBAL INVESTORS + BARRA, INC. + BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, A UNIT OF ALLIANCE CAPITAL MANAGEMENT L.P. + THE BOSTON COMPANY ASSET MANAGEMENT, LLC + BOSTON PARTNERS ASSET MANAGEMENT L. P. + BP AMERICA INC. + CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM + CAMBRIDGE ASSOCIATES + CFA INSTITUTE + CIGNA CORPORATION + COMMONF UND + CREDIT SUISSE ASSET MANAGEMENT + DELAWARE INVESTMENT ADVISERS + DEUTSCHE ASSET MANAGEMENT + DEUTSCHE ASSET MANAGEMENT - SCUDDER + DIMENSIONAL FUND ADVISORS, INC. + DUPONT CAPITAL MANAGEMENT + FARRELL INVESTMENT MANAGEMENT, INC. + FIDELITY INVESTMENTS + FIRST QUADRANT + FOGLER RESEARCH AND MANAGEMENT + THE FORD FOUNDATION + FRANKLIN PORTFOLIO ASSOCIATES + FREEMAN ASSOCIATES INVESTMENT MANAGEMENT LLC + GEEWAX, TERKER & COMPANY + GENERAL MOTORS ASSET MANAGEMENT + GIFFORD FONG ASSOCIATES + GOLDMAN SACHS & CO. + GOLDMAN SACHS ASSET MANAGEMENT + GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC + GUARDIAN LIFE INSURANCE COMPANY OF AMERICA + GUZMAN & COMPANY + HARVARD MANAGEMENT COMPANY + INDEPENDENCE INVESTMENT L.L.C. + INVESCO, INC. + THE INVESTMENT FUND FOR FOUNDATIONS + ITG INVESTMENT TECHNOLOGY GROUP + J. P. MORGAN CONSULTING GROUP + J. P. MORGAN FLEMING ASSET MANAGEMENT + JACOBS LEVY EQUITY MANAGEMENT, INC. + THE JEFFREY COMPANY + LEHMAN BROTHERS + JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION + MARTINGALE ASSET MANAGEMENT, L.P. + McGAHAN GREENE McHUGH CAPITAL MANAGEMENT, LLC + MELLON CAPITAL MANAGEMENT CORP. + MELLON EQUITY ASSOCIATES, LLP + MERCER INVESTMENT CONSULTING + MERRILL LYNCH & CO. + MFS INVESTMENT MANAGEMENT + MORGAN STANLEY + MORGAN STANLEY INVESTMENT MANAGEMENT + NAVIGATOR CAPITAL, LLC + NED DAVIS RESEARCH, INC. + NEW AMSTERDAM PARTNERS L.L.C. + NEW FRONTIER ADVISORS + NEW YORK STATE COMMON RETIREMENT FUND + NICHOLAS-APPLEGATE CAPITAL MANAGEMENT + THE NIKKO SECURITIES CO. INTERNATIONAL, INC. + NOMURA ASSET MANAGEMENT CO., LTD. + NUMERIC INVESTORS, L.P. + ONTARIO TEACHERS PENSION PLAN BOARD + OPPENHEIMER FUNDS, INC. + PIMCO + PLEXUS GROUP, INC. + PRICEWATERHOUSE COOPERS, LLP + PRINCETON UNIVERSITY INVESTMENT CO. + PRUDENTIAL EQUITY GROUP, LLC + PUTNAM/PANAGORA + QUANTITATIVE MANAGEMENT ASSOCIATES, LLC + QUANTITATIVE RESEARCH GROUP LLC + RICHARDS & TIERNEY, INC. + THE ROCKEFELLER FOUNDATION + RUSSELL INVESTMENT GROUP + SEI INVESTMENTS + SMITH BARNEY + SPRINT + STANFORD MANAGEMENT COMPANY + STATE BOARD OF ADMINISTRATION OF FLORIDA + STATE OF NEW JERSEY DIVISION OF INVESTMENT + STATE STREET ASSOCIATES + STATE STREET GLOBAL ADVISORS + STATE STREET RESEARCH & MANAGEMENT COMPANY + STRATEGIC INVESTMENT SOLUTIONS, INC. + SUN LIFE FINANCIAL SERVICES OF CANADA + THOMSON FINANCIAL + THOMSON VESTEK + TIAA-CREF + TOTAL FINANCE USA, INC. + TOWERS PERRIN + TQA INVESTORS, LLC + TRAVELERS INVESTMENT MANAGEMENT COMPANY + TRUST COMPANY OF THE WEST + U. S. BANCORP ASSET MANAGEMENT + U. S. TRUST COMPANY OF NEW YORK + UBS GLOBAL ASSET MANAGEMENT + UNITED TECHNOLOGIES CORPORATION + UNIVERSITY OF CALIFORNIA + THE VANGUARD GROUP + VIRGINIA RETIREMENT SYSTEM + WATSON WYATT INVESTMENT CONSULTING +WEISS, PECK & GREER, L.L.C.+WELLINGTON MANAGEMENT COMPANY+WILSHIRE ASSOCIATES INCORPORATED + WINDHAM CAPITAL MANAGEMENT BOSTON + YALE UNIVERSITY INVESTMENTS OFFICE THE INSTITUTE FOR QUANTITATIVE RESEARCH IN FINANCE P.O. Box 6194, Church Street Station, New York, NY 10249-6194 (Tel 212.744.6825) Administrative Director s Office, Robert L. Whalen, 61 Maple Avenue, Bloomfield, CT 06002 (Tel 860.242.1899) Program Administrator, James M. Coakley, 375 Booth Hill Road, Trumbull, CT 06611 (Tel 203.381.9891) Membership Director s Office, Robert E. Shultz, 120 Scarlet Oak Drive, Wilton, CT 06897 (Tel 203.834.7583) Research Coordinator s Office, Lawrence Harris, USC Marshall School of Business, Los Angeles, CA (Tel 213.740.6496)