Robert Pozen

The Fund Industry: How Your Money is Managed - Wiley Finance Robert Pozen 2.º edición

Marc Notes: 'The Fund Industry' offers a comprehensive look at mutual funds and the investment management industry, for fund investors, those working in the fund industry, service providers to the industry and students of financial institutions or capital markets. Industry experts Robert Pozen and Theresa Hamacher take readers on a tour of the business of asset management. Table of Contents: Foreword Robert J. Shiller xiPreface to the Second Edition xiiiAcknowledgments xviiSECTION ONE An Investor's Guide to Mutual FundsCHAPTER 1 Investing through Mutual Funds 3Advantages and Disadvantages of Mutual Funds 4History and Growth 8Regulators and Industry Associations 16Chapter Summary 22Notes 23CHAPTER 2 How Mutual Funds Work 27Buying and Selling Fund Shares 28The Pass-Through Tax Status of Mutual Funds 31A Virtual Corporation 34Ethical Standards 41Alternatives to Mutual Funds 46Chapter Summary 52Notes 53CHAPTER 3 Researching Funds: The User Guides 57Mutual Funds and Disclosure 57The Summary Prospectus 62Beyond the Summary Prospectus 69Using the User Guides 75Chapter Summary 76Notes 77CHAPTER 4 Comparing Mutual Funds 79Delineating Your Own Investment Objectives 80Evaluating Performance 83The Taxonomy of Mutual Funds 88Chapter Summary 101Notes 102CHAPTER 5 The Cost of Fund Ownership 105The Focus on Fund Expenses 105Distribution Expenses 109Operating Expenses 117The Management Fee 119The Active versus Passive Debate 128Chapter Summary 133Notes 134SECTION TWO Mutual Fund Portfolio ManagementCHAPTER 6 Portfolio Management of Stock Funds 139Stock Research 140Putting It All Together: Managing a Stock Fund 151Chapter Summary 164Notes 165CHAPTER 7 Portfolio Management of Bond Funds 169Bond Fund Holdings 169Putting It All Together: Managing a Bond Fund 181Chapter Summary 187Notes 188APPENDIX TO CHAPTER 7Funds and Derivatives 191Uses of Derivatives in Funds 192Regulation of Derivatives in Funds 194Notes 197CHAPTER 8 Portfolio Management of Money Market Funds199Money Market Funds and the Financial System 200Rule 2a-7 202Money Market Fund Holdings 210Putting It All Together: Managing a Money Market Fund 214Chapter Summary 217Notes 218CHAPTER 9 Implementing Portfolio Decisions: Trading223The Importance of Trading 224The U. S. Stock Markets 225The Role of the Mutual Fund Trader 236Trading in Bond Funds 243Chapter Summary 245Notes 246CHAPTER 10 Mutual Funds as Stockholders 249Mutual Funds and the Proxy Voting Process 249Proxy Voting by Mutual Funds 253Activism and Mutual Funds 258Current Issues in Proxy Voting 264Proxy Voting Outside the United States 266Chapter Summary 268Notes 269SECTION THREE Sales and OperationsCHAPTER 11 Retail Distribution 275What Sells Mutual Funds? 276Distribution Channels 277Fund Platforms 284Distribution Strategy 290Chapter Summary 295Notes 296CHAPTER 12 Retirement Saving through 401(k) Plans 301The Benefits of Tax-Deferred Saving 302History and Growth of 401(k) Plans 304Contributions to 401(k) Plans 310Investment Options in 401(k) Plans 312Target Date Funds 316Plan Administration 319Chapter Summary 320Notes 321CHAPTER 13 Other Retirement Planning Options 325Individual Retirement Accounts 326Variable Annuities 332The Future of Retirement Income in the United States 334Chapter Summary 339Notes 339CHAPTER 14 Fund Operations 343The Transfer Agent 343Fund Accounting 355Investment Operations 366Chapter Summary 370Notes 372SECTION FOUR Beyond Traditional FundsCHAPTER 15 Exchange-Traded Funds 377A Brief History 377Advantages and Disadvantages 380Legal Structure 381Operations 384Portfolio Holdings 387The Future of ETFs 393Chapter Summary 394Notes 395CHAPTER 16 Hedge Funds 399Traditional Hedge Funds 400Traditional Hedge Fund Investors 415The New Hedge Funds: Liquid Alternatives 419Chapter Summary 423Notes 424SECTION FIVE The Internationalization of Mutual FundsCHAPTER 17 Cross-Border Investing 433The Growth in Cross-Border Investing 433Advantages and Risks of Investing Overseas 437Operational Challenges of Investing Overseas 440Putting It All Together: Managing a Global or International Fund444Chapter Summary 448Notes 449CHAPTER 18 Cross-Border Asset Gathering 451The Global Market for Investment Funds 451Models for a Global Fund Business 459The UCITS Model 464Chapter Summary 473Notes 474APPENDIX TO CHAPTER 18Gathering Fund Assets through Retirement Plans 477Chile's Retirement System 480Singapore's Retirement System 483Notes 487About the Companion Website 489About the Authors 491Index 493Biographical Note: ROBERT POZEN is Senior Lecturer at Harvard BusinessSchool and a Senior Fellow at the Brookings Institution. During hisdistinguished career, he has been active in business, government, and academia. From 1997 to 2001, he was President of FidelityManagement & Research Co. From 2004 to 2011, he was executiveChairman of MFS Investment Management, which now manages over $400billion in assets. THERESA HAMACHER, CFA, is president of NICSA, a tradeassociation serving the global investment management community. Sheis the former CIO for Pioneer Investment Management USA in Boston, Massachusetts. Previously, she was the CIO for Prudential MutualFunds in Newark, New Jersey. Jacket Description/Flap: This thoroughly revised second edition of "The FundIndustry" provides a detailed guide to the world of mutual fundsand the investment management industry for individual shareholders, institutional investors, and professionals in the industry. Writtenby experts Robert Pozen and Theresa Hamacher, this comprehensiveresource explains how investors and advisers can research a fundand assess whether it's right for a particular financial orretirement plan. Written in an engaging and accessible style, thebook and companion website provide an insider's view of how fundsare invested, sold, and regulated. The authors reveal how savvy fund managers pick stocks andbonds, make trading decisions, handle proxy voting, and evaluaterisk and return. "The Fund Industry" explores the distributionof fund shares directly to consumers, through financial advisersand via retirement plans, and explains the complex operational andregulatory requirements governing funds. The final sectiondiscusses trends in the fund industry outside the United States, drawing on examples from Europe, Latin America, and Asia. Keeping pace with today's investing trends, this updated editionexpands coverage of hedge funds, liquid alternatives, ETFs, andtarget date funds, and adds an introduction to derivatives and howthey are used in funds. The companion website offers readersexclusive information, as well as a special section forinstructors, containing presentation materials, discussionquestions, and case studies."The Fund Industry," "Second Edition" is essentialreading for all investors who want to know more about the fundsthey own and for financial professionals looking to navigate acomplex industry and better serve their clients. Publisher Marketing: A guide to how your money is managed, with foreword by Nobel laureate Robert Shiller"The Fund Industry" offers a comprehensive look at mutual funds and the investment management industry, for fund investors, those working in the fund industry, service providers to the industry and students of financial institutions or capital markets. Industry experts Robert Pozen and Theresa Hamacher take readers on a tour of the business of asset management. Readers will learn how to research a fund and assess whether it's right for them; then they'll go behind the scenes to see how funds are invested, sold and regulated. This updated edition expands coverage of the segments of the industry where growth is hottest, including hedge funds, liquid alternatives, ETFs and target date funds--and adds an introduction to derivatives. Mutual funds are a key component of financial planning for 96 million Americans. Nearly a quarter of U. S. household savings are invested in funds, which give individual investors affordable access to professional management. This book provides a detailed look at how firms in the industry: Invest those savings in stocks and bondsEvaluate the risks and returns of fundsDistribute funds directly to consumers or through financial advisors or retirement plansHandle the complex operational and regulatory requirements of mutual fundsVote proxies at the annual meetings of public companiesExpand their operations across bordersAlong the way, the authors describe the latest trends and discuss the biggest controversies--all in straightforward and engaging prose. "The Fund Industry" is the essential guide to navigating the mutual fund industry.