The Mutual Fund Industry

Author: R. Glenn Hubbard
Publisher: Columbia University Press
ISBN: 0231151829
Format: PDF
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Mutual funds form the bedrock of retirement savings in the United States, and, considering their rapid growth over recent decades, are sure to become even more financially critical in the coming decades. Because the size of fees paid by investors to mutual fund advisers can strongly affect the return on investment, these fees have become contentious in Congress and the courts, with many arguing that investment advisers grow rich at the expense of investors. This groundbreaking book not only conceptualizes a new economic model for the industry but uses this model to test price competition between investment advisers. Its highly experienced authors track the growth of the industry over the past twenty-five years and present the arguments and evidence both for and against theories of adviser malfeasance, as well as the assertion that market forces fail to protect investors' returns from excessive fees. The volume briefly reviews the regulatory history of mutual fund fees and leading case decisions addressing excessive fees. It also reveals the extent to which the governance structure of mutual funds impacts fund performance. There is no greater text for those who seek to understand today's mutual fund industry, including investors, money managers, fund directors, securities lawyers, economists, and those concerned with regulatory policy toward mutual funds

Creating a Learning Society

Author: Joseph E. Stiglitz
Publisher: Columbia University Press
ISBN: 0231540620
Format: PDF, Mobi
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Creating a Learning Society explains how the countries of the world went from centuries of stagnation to the enormous increases in standards of living that have marked the last two hundred and fifty years: they have learned how to learn. Yet, as Stiglitz and Greenwald make clear, markets won’t succeed on their own in creating the learning society that we need. Achieving this requires good governmental policy in a variety of areas, including trade, industry, and intellectual property. Indeed, the central thesis of this book is that every policy—tax, regulation, and expenditure—affects learning, and that policymakers have been remiss in ignoring this. Some policies, such as the Washington Consensus policies foisted on developing countries by the World Bank and IMF, actually impede learning. In advanced and developing countries alike, Creating a Learning Society has had a remarkable reception. Governments in Malaysia, Singapore, Turkey, Jordan, and South Africa have signaled strong support for its policies, and a Dutch think tank closely allied with the government released a blueprint for creating a learning economy. This streamlined edition, intended for everyone from scholars to general readers, omits the original book’s complicated mathematical equations and, in accessible language, focuses on its central messages and policy prescriptions.

The Aid Trap

Author: R. Glenn Hubbard
Publisher: Columbia University Press
ISBN: 0231519508
Format: PDF
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Over the past twenty years more citizens in China and India have raised themselves out of poverty than anywhere else at any time in history. They accomplished this through the local business sector& mdash;the leading source of prosperity for all rich countries. In most of Africa and other poor regions the business sector is weak, but foreign aid continues to fund government and NGOs. Switching aid to the local business sector in order to cultivate a middle class is the oldest, surest, and only way to eliminate poverty in poor countries. A bold fusion of ethics and smart business, The Aid Trap shows how the same energy, goodwill, and money that we devote to charity can help local business thrive. R. Glenn Hubbard and William Duggan, two leading scholars in business and finance, demonstrate that by diverting a major share of charitable aid into the local business sector of poor countries, citizens can take the lead in the growth of their own economies. Although the aid system supports noble goals, a local well-digging company cannot compete with a foreign charity that digs wells for free. By investing in that local company a sustainable system of development can take root.

The Efficient Market Theory and Evidence

Author: Andrew Ang
Publisher: Now Publishers Inc
ISBN: 1601984685
Format: PDF, ePub, Mobi
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The Efficient Market Theory and Evidence reviews the extensive theoretical and empirical literature on the efficient markets hypothesis (EMH).

Healthy Wealthy and Wise

Author: John F. Cogan
Publisher: Hoover Press
ISBN: 0817910662
Format: PDF, ePub
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In this second edition of their 2005 work, the authors offer market-based alternatives to recent health care reforms that center on tax changes, insurance market changes, and the redesign of Medicare and Medicaid. They show that, by promoting cost- conscious behavior and competition in both private markets and government programs such as Medicare and Medicaid, we can slow the rate of growth of health care costs, expand access to high-quality health care, and slow down runaway spending.

The Infrastructure Finance Challenge

Author: Ingo Walter
Publisher: Open Book Publishers
ISBN: 1783742968
Format: PDF, Docs
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Infrastructure and its effects on economic growth, social welfare, and sustainability receive a great deal of attention today. There is widespread agreement that infrastructure is a key dimension of global development and that its impact reaches deep into the broader economy with important and multifaceted implications for social progress. At the same time, infrastructure finance is among the most complex and challenging areas in the global financial architecture. Ingo Walter, Professor Emeritus of Finance, Corporate Governance and Ethics at the Stern School of Business, New York University, and his team of experts tackle the issue by focussing on key findings backed by serious theoretical and empirical research. The result is a set of viable guideposts for researchers, policy-makers, students and anybody interested in the varied challenges of the contemporary economy.

Rational Investing

Author: Hugues Langlois
Publisher: Columbia University Press
ISBN: 0231543786
Format: PDF, ePub, Mobi
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To the average investor, playing the market seems like a high-stakes, high-risk gamble, with success tied almost wholly to luck. In Rational Investing, the asset manager Hugues Langlois and the finance professor Jacques Lussier prove otherwise, showing how anyone can study, predict, and learn to master investing. While luck is no small component of profitable asset management, skilled investors can minimize its influence over time, reducing good and bad luck to minor computational noise. Langlois and Lussier construct a science of smart investing around four considerations: skill, behavior (investor and market psychology), horizon (short- or long-term investing), and luck. Successful practice means learning how to efficiently balance risk premiums, statistically diversify, and take advantage of mispricing—luck is only a small factor. With clear examples from model multi-asset-class portfolios, Langlois and Lussier show how to implement performance drivers from the perspective of an institutional investor with access to extensive resources, as well as a nonprofessional investor who is constrained to single stock and other small-scale purchases. There are few investment products or management strategies, whether traditional or alternative, discretionary or systematic, fundamental or quantitative, that cannot be analyzed through their framework. Langlois and Lussier illuminate the structure of financial markets and the mechanics of sustainable investing so any investor can become a rational player.

The Fund Industry

Author: Robert Pozen
Publisher: John Wiley & Sons
ISBN: 1118929950
Format: PDF, ePub, Docs
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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 bonds Evaluate the risks and returns of funds Distribute funds directly to consumers or through financial advisors or retirement plans Handle the complex operational and regulatory requirements of mutual funds Vote proxies at the annual meetings of public companies Expand their operations across borders Along 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.

Accounting for Value

Author: Stephen Penman
Publisher: Columbia University Press
ISBN: 0231521855
Format: PDF, Kindle
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Despite their skills and extensive training, many analysts fail to recognize the basics of good accounting and its deployment in valuation. By focusing on abstract concepts such as measurement basis, exit values, and entity concepts, they miss out on the benfits of a practical approach to valuation. While modern finance has advanced important concepts, including diversification and risk measurement, effective and efficient accounting merges these tools with fundamental analysis to divine a true account of value. Launching an innovative examination of equity valuation as a matter of accounting, Stephen Penman embraces the commonsense ideas of fundamentalists& mdash;good firms can be bad guys, the risk in investing is the risk of paying too much, ignore information at your own peril, beware of paying too much for growth& mdash;and combines them with the principles of modern finance to reestablish the parameters of good analysis. The result anchors the investor, guards against behavioral biases, and challenges speculation. Penman compares fair-value accounting and historical-cost accounting; describes the anchoring of cash flows, book value, and earnings; and details the failure of modern finance to correctly assess value. He concludes with fundamental strategies for accounting for value and a bold proposal for assessing the cost of capital. Altogether, Penman's text is an essential tool for interpreting the greatest financial challenges of our time: the stock market bubble of the 1990s, the credit crisis of 2008, and accounting in the wake of ongoing market instability.

The Economics of Mutual Fund Markets Competition Versus Regulation

Author: William Baumol
Publisher: Springer Science & Business Media
ISBN: 9400921853
Format: PDF, Mobi
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The original impetus for this research was provided several years ago by a request to assist Counsel for Fidelity Management and Research Corporation in analyzing the mutual fund industry, with particular emphasis on money market mutual funds. We were asked to focus our efforts on the mechanism by which the advisory fees of mutual funds are determined. This request arose out of litigation that challenged the level of advisory fees charged to the shareholders of the Fidelity Cash Reserve Fund. Subsequently, we were asked to provide similar assistance to Counsel for T. Rowe Price Associates regarding the fees charged to shareholders of their Prime Reserve Fund. 1940, advisers of Under the Investment Company Act of mutual funds have a fiduciary duty with respect to the level of fees they may charge a fund's shareholders. Since the passage of the Investment Company Act, there have been numerous lawsuits brought by shareholders alleging that advisory fees were excessive. In these lawsuits, the courts have failed to provide a set of standards for determining when such fees are excessive. Instead, they have relied on arbitrary and frequently ill-defined criteria for jUdging the reasonableness of fees. This failure to apply economic-based tests for evaluating the fee structure of mutual funds provided the motivation for the present book, which undertakes a comprehensive analysis of the economics of the mutual fund industry.