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Considers the role of pension funds′ real portfolio structure and the role of property within that portfolio, discussing the need for establishing parameters. Compares business risk and investment risk, and discusses the problems faced by investment managers in reconciling their conflicting requirements. Highlights the potential conflict of interest between quoted securities managers and property advisors. Suggests, by reference to a historical summary, that, given sufficient information, property should be treated as all other assets.

Describes the tenure and contract experience of approximately 300 UK chief executive officers (CEOs) in 1993. Draws on the results of a retrospective postal questionnaire and examines whether the recommendations of the Cadbury report regarding contract provision of senior executives are being adhered to. The results of this descriptive exercise show that the median contract length of a typical UK CEO in a large company is three years. This is in line with the recommendations made by the Cadbury report. We find that on average such CEOs have been with their company for about five and a half years. Argues that, as a matter of good policy, companies should reveal the reasons for the length of the contract received by the CEO if this exceeds 12 months.

In this series of extracts from the concluding chapter of Acharya’s book, Asset Management: Equities Demystified, the author argues that the major factor in future developments will be legislation and regulation. But she suggests that ultimately knowledge management will be the crucial competitive advantage. “As knowledge is power”, she says, “knowledge is more powerful today than ever before”.