Designed as a practical introduction to collective investment funds and their management, this book draws on the experience of the authors in both developed and emerging markets. It identifies best practice internationally, and also highlights the challenges of regulating and operating collective investment funds in new and emerging markets and explores how these can be met. Written for practitioners and regulators new to the collective investment funds business, it explores every aspect of a fund’s structure and operation: from how it is valued and priced through to the importance of its regulatory, fiscal and accounting regimes and the effect these can have on market development. Finally the book focuses on the demands of building a successful investment fund business.
Book Details:
- Author: Mark St Giles
- ISBN: 9780470856963
- Year Published: 2005
- Pages: 390
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Designed as a practical introduction to collective investment funds and their management, this book draws on the experience of the authors in both developed and emerging markets. It identifies best practice internationally, and also highlights the challenges of regulating and operating collective investment funds in new and emerging markets and explores how these can be met. Written for practitioners and regulators new to the collective investment funds business, it explores every aspect of a fund’s structure and operation: from how it is valued and priced through to the importance of its regulatory, fiscal and accounting regimes and the effect these can have on market development. Finally the book focuses on the demands of building a successful investment fund business.
Collective investment funds are a way of pooling small contributions from lots of sources into a single investment fund. It lets the buyer have a stake in a wide range of investments. Collective investments include unit trusts, investment trusts, open-ended investment companies and exchange-traded funds. The key difference between these and, eg, life assurance and pension funds, is that the investor takes all the risk – there is no institution between them and the market. The US trade association of funds (the Investment Company Institute – www.ici.org) and the European Federation of Investment Funds and Companies (FEFSI – www.fefsi.org), which is the trade association of European countries’ fund trade associations, publish figures for publicly-offered open ended investment funds worldwide, with which our book is primarily concerned. This industry was worth, at the end of December 2001, $11 trillion, covering 38 countries; the US accounted for $6.9 trillion, and Europe for $3.65 trillion. Around 53,000 investment funds are included in this figure. The $11 trillion will have reduced by now, with the fall in markets worldwide – maybe to $10 trillion – but the most recent worldwide figures are from end 2001. While precise figures are not available, it is estimated that there are around 3-4000 fund management companies in the world, with a further 3000 service provider organisations (accountants, lawyers, custodians, information providers, IT and systems houses, etc) and regulators or other organisations such as trade bodies.
· Contains practical examples, questions and case studies illustrating current developments in the industry worldwide · Written by authors with decades of practical experience in teaching and practice · First edition has received critical praise James Rath, Secretary, Association of Investment Trust Companies, UK: “The AITC welcomes Cadogans comprehensive reference book covering the establishment, operation and management of such funds.” Philip Warland, Director General, Association of Unit Trusts and Investment Funds, UK: “Cadogan has successfully put together a comprehensive and detailed appraisal of the fundamental tools and knowledge required not just to build but also to manage a successful collective investment funds business. It is written concisely and clearly with effective use of diagrams and very helpful tables. The book is particularly relevant to practitioners and regulators new to the subject, and written from an international perspective. It sets out the common principles of collective investment funds operating under different legal systems. This publication is compiled by a team of unparalleled experience and expertise.” Patrick Zurstrassen, Managing Director, Credit Agricole-Indosuez, Luxembourg: “This looks like the most complete work so far on the funds industry. I shall encourage all my staff to use it whenever possible.” Review of new proposal Victoria Nye, Director, Training and Education, Investment Management Association: “The authors are well known. They run a training course for this association. Our sense was that Cadogans approach to understanding the industry is very practical from a business perspective, unlike other educative authors. Hence our reason for running a course with them. I know the book in its first edition and believe that it has been valued by many as reference material on the retail funds sector and how it behaves.” Fred Vacelet, Risk Management Consultant, FSA: “The reader would gain an understanding of how funds work. Especially strong is the books international focus and it is strong on the administration of funds. The author is well known and well qualified to write this book.”
About the Author
Mark St Giles has worked in the financial sector since 1964, initially as a stockbroker and subsequently as managing directoir and chairman of fund management businesses. A past chairman both of the Investment Management Association and the European Federation of Investment Funds and Companies (FEFSI), he is chairman of Cadogan Education Ltd and a Partner of Cadogan Financial. Ekaterina Alexeeva has worked in the collective investment funds sector since becoming head of Cadogan Financial’s Russian office in 1995. She is a director of Cadogan Education Ltd, with responsibility for research and for the content of the company’s Global Investment Funds Information Centre (GIFIC) website. Sally Buxton has worked in the collective investment funds sector since 1982 when she joined the Information Unit of what is now the UK’s Investment Management Association.. She is a director of Cadogan Education Ltd and a Partner of Cadogan Financial working with governments, regulators and practitioners on the development of collective investment fund sectos worldwide.