An Introduction to Fund Management [Paperback]

An Introduction to Fund Management introduces readers to the economic rationale for the existence of funds, the different types available, investment strategies and many other related issues from the perspective of the investment manager. It gives an overview of the whole business and explores the process and techniques of fund management, performance measurement and fund administration. This updated edition reflects new regulatory changes and industry developments.

Preface xi

About the author xiii

1 INTRODUCTION 1

Economic background 3

‘Money makes the world go round’ 4

‘Money doesn’t grow on trees’ 5

Risks and rewards 6

Considerations 9

Markets 10

Investment instruments 11

‘Neither a borrower nor a lender be’ 12

2 ROLE OF FUNDS 13

Definitions 14

Investment businesses 15

Types of fund 16

Open-ended and closed-ended funds 23

Uses of funds 24

Associated packaging 25

Features and characteristics 25

Purpose, providers and players 25

Costs, benefits and comparisons 27

How to invest 31

Sales, marketing and disclosure 31

Categories, sectors and statistics 32

Investor protection 33

‘Be it enacted by the Queen’s most Excellent Majesty . . .’ 33

Regulation in practice 42

Establishing a fund 47

Who wants one and why? 47

Options and approaches 48

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