Pension fund investment management presents a new approach to establishing termination threshold, with several important advantages over current approaches. The approach is provided solutions in varying asset classes, style of management, interim volatility, and degrees of underperformance, all of which may be readily established by knowledgable pension plan sponsors. Termination thresholds for index managers may be established within relatively close tolerance to benchmarks, while terminalation thresholds for active managers must permit subtantial tracking error. Plan sponsors are well-advised to anticipate how tracking error may impact their portfolio's expected return and should use this approach in determining whether manager performance warrants termination. This book is divided into 20 chapters within 4 sections: section 1 includes; pension Fund Governance, operation, and value creation -- Investment policy, organizing internal investmentmanagement-- the evolution role of the pension investment consultant -- Investment style, stock market cycles, investor expectations, and pension fund performance -- Strategic currency management for U.S. pension funds -- The role of completion funds in equity style management -- computer-aided pension investment decision making -- and a paln sponsor's guide to commissions. Section 2 relating bechmark selection: bechmark portfolios, return-based style analysis and equity style bechmarks for fund analysis. The section 3 ffers the asset/liability management: pension liability, a practiceal approach to integrating pension finance with corporate ffinance and measures of risk for portfolio optimization and asset/liability modeling. The final section contains the managing firmwide risk for pension funds, money manager selection (a top - down approach), selecting an internatonal investment manager, and establishing performance-related termination thresholds for investment mangment