Investment funds and asset management Flashcards
1
Q
What are some institutions that make up the asset management industry?
A
- Retail funds
- Institutional funds
- Hedge funds
- Active funds
- Passive funds
2
Q
What does “client facing” mean?
A
Take money from savers to invest on their behalf to provide long term future returns
3
Q
Do client facing firms make all their own investment decisions?
A
No
4
Q
What are some examples of “client facing” firms?
A
- Pension funds
- Life insurers
- Sovereign wealth funds
5
Q
What are some different types of asset?
A
- Equities
- Government bonds
- Corporate bonds
6
Q
Why do firms invest in money markets?
A
To manage their liquidity and finance withdrawals
7
Q
What are some asset classes?
A
- Emerging markets
- Commercial real estate
- commodities
- asset backed securities
- Tradeable loans
8
Q
An investment fund’s fees are based on:
A
The market value
9
Q
What are the most familiar investment benchmarks?
A
Stock indices
10
Q
Why have benchmarks become more important?
A
- Help investors measure the performance of funds or strategies
- To support passive investment management
11
Q
Why is passive investment management pursued with relatively low fees?
A
It can be conducted mechanically
