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According to the U.S. Census, there are more than 80,000 political subdivisions in the United States. These states, counties, cities, school districts, and other entities spend more than $2 trillion annually and hold financial assets of some $2.6 trillion, not counting pension funds. How these assets are overseen, managed, measured, and reported is the focus of Ben Finkelstein's book. The premise is that Main Street is different from Wall Street. Specifically, Wall Street's traditional focus on total return investment methods and performance standards is inapplicable to the management of public fund assets. This is because no uniform standard exists for public fund performance, and public managers must consider political issues and public perceptions, factors generally absent in the investment of private assets though ubiquitous for public fund managers.
The book is divided into two parts, aptly named "Main Street Philosophy" and "Technical Tool Kit." The sum of these parts is a helpful guide to understanding and, for practitioners, applying, public sector investment policies and procedures suitable to both the public sector environment and the unique needs of each public fund. Finkelstein lays the groundwork by clarifying differences between Wall Street and Main Street, reminding readers of the central priorities that should drive the investment of public funds: safety, liquidity, and income....