Financial Times Guide to Investing in Funds How to Select Investments, Assess Managers and Protect Your Wealth

by De Lavenere Lussan, Jerome

• ISBN13: 9780273732853
• ISBN10: 0273732854
• Edition: 1st
• Format: Paperback
• Copyright: 2012-07-03
• Publisher: Ft Pr

Summary

Learn the procedures to carry on any investment fund before deciding where to place your money so you can ensure you generate more wealth and protect your cash. A valuable guide that will help readers make the right investment decisions by: - Explaining theprocedures that should be followed by anyone before investing money anywhere. - Helping readers cut through marketing language to get a real sense of how risky a company's strategy may be. - Showing readers what questions to ask of investment fund managers to make them more comfortable in investing in a company. -Shows readers the warning flags to look for This book will help identify those companies who consistently deliver high returns, thereby allowing readers to generate more wealth by investing in successful and stable, funds. Author Jerome Lussan is a well known name in the hedge fund, legal and investing world. He's well connected and is frequently name checked in the media which will help generate publicity for the book. Benchmarks:The Financial Times Guide to Investing,1 st edition, (978-0273663096)28,109 copies sold (Total Vista sales since publication in April 2004).Investing Against the Tide: Lessons from a Life Running Money, (9780273723769) 5, 272 copies sold since publication March 2009 (TCM Nielsen Bookscan lifetime sales).Trading Secrets(9780273722090) has sold 2,578 copies since publication in December 2008 (TCM Nielsen Bookscan).

Author Biography

Jérôme de Lavenère Lussan is the founder and managing director of Laven Partners – and investment management consultant whose specialism is operational due diligence on investment companies. Laven Partners has recently won the ‘Best Regulatory Advisory Firm 2009’, awarded by Hedge Fund Manager magazine.

Jérôme trained as a lawyer and worked at Jones Day before running a hedge fund: this has given him the detailed understanding of how an investment management business works.

Jérôme has taught on courses for Financial Times Knowledge and Euromoney. He also participates in in-house training for FT journalists, known as ‘FT Business Masterclass’.

He’s frequently interviewed for market comments and recently appeared on Bloomberg TV.

Table of Contents

Acknowledgements	p. viii
Introduction	p. ix
The manager	p. 1
The star traders	p. 3
International legal structures for managers	p. 3
The manager and the advisor's roles	p. 5
Controls over the fund	p. 12
What to deduce from a manager's set up	p. 16
The fund	p. 19
Investing in a fund	p. 19
International legal structures for funds	p. 21
Common forms of funds	p. 23
Understanding where the money goes	p. 30
Fund performance	p. 31
The prospectus	p. 37
Why is there a prospectus?	p. 38
Leverage and investment restrictions	p. 40
Fees	p. 44
The subscription and redemption forms in the prospectus	p. 47
Corroboration and gap analysis with marketing material	p. 48
Governance	p. 51
Key individuals	p. 52
Organisation of employees	p. 55
Directors' independence	p. 62
Management dedication	p. 65
Service providers	p. 67
The missing link - the investor	p. 67
Administrator	p. 71
Prime broker and custodian	p. 80
Other key providers	p. 84
Front and back office operations	p. 89
Internal operational policies	p. 89
Verifying the application of policies	p. 91
Front office workflow	p. 92
Back office workflow	p. 97
The future balance of power between front and back office	p. 101
Investment process and products	p. 105
Investment process	p. 106
Key strategies	p. 107
A disciplined approach	p. 109
Dependence on research	p. 114
Using statistics and data	p. 116
Benchmarks	p. 117
Leverage	p. 118
Portfolio turnover and trading volume	p. 123
Market conditions and competitors	p. 124
Products traded and assets in your portfolio	p. 125
Capacity and AUM	p. 127
Investors analysis	p. 131
Principals' own investments	p. 132
Risk management	p. 135
Risk management processes	p. 137
Key man risk	p. 145
Market risk	p. 147
Valuation risk	p. 150 Liquidit
Counterparty risk	p. 152
Compliance	p. 157
Compliance status	p. 158
Compliance officer	p. 160
Systems and controls	p. 163
Financial promotion	p. 165
Financial reporting	p. 166
Insurance	p. 166
Business continuity plan	p. 167
Dealing and managing	p. 169
Anti-money laundering	p. 174
Prudential (capital requirement)	p. 175
Background checks	p. 179
Relevance of background checks	p. 179
Practical steps	p. 183
Conclusion	p. 191
The value of due diligence	p. 192
The future of the fund industry's service providers and advisors to investors	p. 195
New regulation - what is it good for?	p. 201
Glossary	p. 211
Index	p. 219
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