Demystifying the Fund Industry
Paul B. Brown reviews the latest book by Bob Pozen, The Fund Industry: How Your Money is Managed
It is amazing how little many of us really know about our mutual funds.
We may have a handle on the investments they hold — large-cap stocks or bonds or whatever — and some understanding of how they work: our money is pooled with a lot of other people’s, and we share the gains and losses proportionately. Continue reading
The latest book from Bob Pozen.
Every investor, student of finance and participant in the mutual fund industry needs to read this book. The Fund Industry details how mutual funds are marketed, regulated, and invested in stocks and bonds. The book also describes the critical factors needed to choose a specific fund for your investment or retirement plan, including what to look for when reading prospectuses, shareholder reports and third party reviews.
In 2009 more than 87 million Americans were invested in mutual funds, but it is unlikely that more than a handful outside of the industry had any idea how these funds work. Robert Pozen and Theresa Hamacher set out to educate the investor in The Fund Industry: How Your Money Is Managed (Wiley, 2011). The education is thorough, clear and enjoyable. I highly recommend it.
Robert Pozen, chairman emeritus of MFS Investment Management, discusses his 2011 book “The Fund Industry: How Your Money is Managed” with Bloomberg’s Pimm Fox and David Wilson. They spoke on Bloomberg Radio’s “Taking Stock.”
Written by Robert Pozen and Theresa Hamacher, Fundamentals of the Fund Industry is the most in-depth and up-to-date guide to navigating the mutual fund industry, written in an accessible style with many examples and charts.The Fund Industry details how mutual funds are marketed, regulated, and invested in stocks and bonds. The book also describes the critical factors needed to choose a specific fund for your investment or retirement plan, including what to look for when reading prospectuses, shareholder reports and third party reviews. In addition, the book:
- Discusses the spread of mutual funds to Asia, Europe, and Latin America
- Compares mutual funds to other investment vehicles such as hedge funds and ETFs
- Shows how to sort mutual funds by categories and subcategories based on security type and investment objective
The Mutual Fund Business (2nd Edition)
Pozen, a leading industry expert, offers a structured presentation of mutual funds for upper-level undergraduates and MBA students. The Mutual Fund Business, 2/e, covers the key principles of mutual fund investment theory through straightforward writing supported by selected articles and case studies.This text provides a comprehensive, firsthand look at the investment strategies supporting a $4 trillion industry undergoing significant growth in the U.S.
In the last decade, the number of mutual funds has tripled to more than 6,000 funds with more than $4 trillion in assets and more than 60 million individual shareholders. Yet there is no book on the mutual fund business designed for MBA and undergraduate business courses. The Mutual Fund Business, assembled by a leading industry expert, fills this gap.
The book is divided into four parts. Part I contains a general introduction to mutual funds, a short history of the industry, and an overview of mutual fund regulation. Part II covers portfolio management of stock funds and bond funds, as well as execution of fund trades. Part III discusses the marketing and servicing of mutual funds in the direct, intermediary, and retirement channels. Finally, Part IV delves into more specialized topics: the financial dynamics of mutual funds, mutual funds as institutional investors, the role of technology in mutual fund complexes, and the internationalization of mutual funds.
Each chapter contains not only a lengthy introduction and selected articles, but also a detailed case study or class exercise. An extensive teacher’s manual, with a complete set of lecture notes, slides (on diskette) to support the lectures, answers to the review questions for each chapter, and an analysis of each case study is available for instructors who adopt the book.