An Introduction to Fund Management

by Russell, Ray

• ISBN13: 9780470017708
• ISBN10: 0470017708
• Edition: 3rd
• Format: Paperback
• Copyright: 2006-05-12
• Publisher: WILEY

Summary

This guide is derived from the author's notes for the two-day course of the same name that he presents for the Securities and Investment Institute.

Author Biography

<b>Ray Russell</b> has been a consultant and trainer within the financial services industry since 1988.&#160; Prior to this he spent 25 years in investment banking.&#160; Operating as GCR Management Services he has served as a director of a fund management firm for 10 years and has developed introductory training for the SII and fund management firms in the UK and Ireland.&#160; He also created a week long course for the compliance Institute.

Table of Contents

Preface	xi
About the author	xiii
1 INTRODUCTION	1	(12)
Economic background	3	(1)
'Money makes the world go round'	4	(1)
'Money doesn't grow on trees'	5	(1)
Risks and rewards	6	(3)
Considerations	9	(1)
Markets	10	(1)
Investment instruments	11	(1)
'Neither a borrower nor a lender be'	12	(1)
2 ROLE OF FUNDS	13	(40)
Definitions	14	(1)
Investment businesses	15	(1)
Types of fund	16	(7)
Open-ended and closed-ended funds	23	(1)
Uses of funds	24	(1)
Associated packaging	25	(1)
Features and characteristics	25	(1)
Purpose, providers and players	25	(2)
Costs, benefits and comparisons	27	(4)
How to invest	31	(1)
Sales, marketing and disclosure	31	(1)
Categories, sectors and statistics	32	(1)
Investor protection	33	(1)
'Be it enacted by the Queen's most Excellent Majesty...'	33	(9)
Regulation in practice	42	(5)
Establishing a fund	47	(1)
Who wants one and why?	47	(1)
Options and approaches	48	(2)
Documents and authorisations	50	(1)
Launching the fund	51	(2)
3 PORTFOLIO MANAGEMENT	53	(34)
Strategies, styles, objectives and policies	54	(2)
Meeting investors' requirements	56	(1)
Risks to be managed	57	(2)
Hedging	59	(3)
'Please don't ask for credit...'	62	(1)
'You can't do that!'	63	(2)
Asset allocation versus stock selection	65	(1)
Choosing the investments	66	(1)
'First, pick your markets'	66	(2)
Portfolio weightings and profiles	68	(1)
Income and growth	69	(1)
Liquidity	70	(1)
Evaluating alternatives	71	(4)
Data, ratios and measurements	75	(3)
Dealing with events	78	(1)
News and announcements	79	(2)
New issues and underwriting	81	(2)
Rights, splits and scrip	83	(2)
Breaches of regulations	85	(2)
4 PORTFOLIO ADMINISTRATION	87	(16)
'Day by day in every way...'	88	(1)
Buying and selling	88	(1)
Delivery and settlement	89	(1)
Registration	89	(2)
Custody	91	(1)
Use of nominees	91	(2)
Stock exchange reporting	93	(1)
Records and regulations	93	(1)
Portfolio accounting and controls	94	(2)
Profits, income and taxation	96	(2)
Valuation and pricing	98	(5)
5 INVESTOR ADMINISTRATION	103	(12)
Agents, agreements and delegation	104	(1)
Investor transactions	105	(3)
Registration	108	(1)
Communicating with investors	109	(6)
6 PERFORMANCE MEASUREMENT	115	(18)
Sector comparisons - 'my fund is better than your fund'	116	(3)
Yields and returns	119	(4)
Time- and money-weighted returns	123	(4)
Indices and benchmarking	127	(3)
Volatility and risk adjustments	130	(3)
7 INVESTMENT MATHEMATICS	133	(14)
The arithmetic of indices	134	(3)
Standard deviation	137	(2)
Capital Asset Pricing Model	139	(8)
Glossary	147	(8)
List of abbreviations	155	(2)
Index	157