Talk:Investment management

Suggestions for improvement

simonthebold:
If you feel the article could be improved please leave your comments here:

Hi Simon! The part where it goes "The global investment management industry is highly concentrated in nature, in a universe of about 70,000 funds roughly 99.7% of the US fund flows in 2012 went into just 185 funds. Additionally, a majority of fund managers report that more than 50% of their inflows go to only three funds." It's not properly quoted and I can't seem to find the source for this quote.

I'm (user name Croesomorris) new to Wikipedia so I'm not quite sure how this process works but I was looking for an article on "asset management" and was automatically redirected to "investment management". This automatic redirection was a little surprise and would be fine if the terms "investment management" and "asset management" are equivalent and interchangeable; however, they are not. An encyclopedia should cater for the different perspectives of readers and I am sure that not all readers interested in "asset management" would wish to start reading about "investment management". I recognise that there is a relationship and alternative perspectives of "asset management" need to be catered for. I would be grateful for advice on how to seek agreement on a removal of the automatic redirect and creation of an "asset management" stub that can be developed into an article. — Preceding unsigned comment added by Croesomorris (talk • contribs) 12:51, 31 January 2011 (UTC)

Hi Simon!

I would like to add an external link on the following topic: "Managing a portfolio of stock and risk-free investments: a tutorial for risk-sensitive investors". Our work is intended to provide a kind of protection kit for investors and to motivate many types of investors to take charge of their financial decisions, without a great investment in time. Please let me know whether this complies with Wikipedia's standards. Thank you! Ira —Preceding unsigned comment added by SigmaDeWe (talk • contribs) 14:56, 14 August 2010 (UTC)

Seems like asset management and investment management arent the same thing. The wiki page doesnot clarify how they differ. see http://www.economist.com/finance/displayStory.cfm?story_id=13848711&source=features_box3 states that these two businesses are rather different —Preceding unsigned comment added by 75.73.9.109 (talk) 12:11, 13 June 2009 (UTC)

Hi Simon, Can I pls add Thomson Investment Management News to the list of external sources? Its a free of charge source and users would fine its useful http://www.thomsonimnews.com/index.asp, Thanks. —Preceding unsigned comment added by 159.104.212.36 (talk) 16:09, 9 January 2008 (UTC)

Simon- I'm so sorry... I'm new to this, and I just edited & added some content to the page without looking at the discussion first. I hope it doesn't seem disrespectful; it was just a matter of ignorance.

--Bobsbrotherfutureman 22:52, 28 November 2006 (UTC)------------

Hey Bob, its not my page, its our page. I had a quick look, your edits seem good. simonthebold 13:37, 29 November 2006 (UTC)

Hi Simon - curious as to why you include derivatives as an asset class, give that their price movements reflect changes in the underlying asset. Can you point me to any research that seeks to show that derivatives are a true asset class. if not, maybe you could be a little more rigorous with respect to your inclusion of them. Otherwise, a great introductory article Alphaseiqer 22:06, 10 December 2006 (UTC)alphaseiqer

I didn't actually write that bit of the article. You are right though so I've made the amendment. simonthebold 09:54, 27 July 2007 (UTC)

The Asset mgr info is out of date. Newer info is here on p.12, but i dont know how accurate it is, but at least they have Blackrock, which given their size, should be mentioned. http://www.bankofny.com/htmlpages/data/presentation_04dec06.pdf Fbrennin 17:40, 26 July 2007 (UTC)Frank

Hi Frank, they seem to got their data from Pensions & Investments an industry publication. I tried to verify the data but they have lists for different groupings of assets. See www.pionline.com. See if you can find the source page for this data. That would be ideal. simonthebold 10:17, 27 July 2007 (UTC)

If you need help finding citations, you should probably contact Professor Brian Bruce. I'm sure he'd be happy to help you. He manages the Alternative Asset Management Center at SMU Cox School of Business. His web site is http://www.cox.smu.edu/web/alternative-asset-management/alternative-asset-management-center and you can get his email and/or phone number off his web page.User:CoxWebMaster:CoxWeb —Preceding unsigned comment added by 129.119.81.135 (talk) 20:11, 18 February 2010 (UTC)

Asset management companies bankruptcy

When they file for bankruptcy the asset of their clients and their own assets(that the bond holders and shareholders will get) are two separate things correct? The clients will always get their assets back(assuming they didn't cook the books to hide losses) correct?

With regret this depends on the investment vehicle (the legal structure under which you invest). For example Exchange Traded Funds (ETF) are normally accessed (invested in) by way of ordinary equity. (You buy shares in the investment company who then, in turn, invest the proceeds, less many intermediate expenses, in other businesses). When an ETF fails you lose your $. The same applies to hedge funds.

Why do they do this? the basic reason is that they gear your investment (borrow more $) and those creditors have prior claim over all the assets. Why do they gear? because if you gear say 67% (borrow $2 for every $1 invested) then you can lose (or gain)twice as fast as you otherwise would. However this gain is reduced by the cost of borrowing.

Thus $1 invested for one year geared 67% with an interest rate of 5%, an investment return of 10%, an an initial brokerage of 1% and a annual expense of 2% will return 15.76%, (a direct investment with no gearing would yield 8.9%). However, if the investment return was 2% the geared investment would show a loss of 8%.

Most mutual funds do not gear (a major exception being real estate funds)and for most other financial intermediaries (life insurance companies and brokers) the client assets are (should be) held in a seperate trust account and are not available to the ordinary creditors of the firm but remain the property of the investors (there are some notable exceptions to this, mainly concerning investors who are also active participants in the investment management firm (and there are extensive variations by jurisdiction - notably in jurisdictions that do not have trust law).

It is usually not a pleasant experience to own assets that are being managed by a company in bankruptcy.

Citation needed?!

"evidence suggests that size of an investment firm correlates inversely with fund performance, i.e., the smaller the firm the better the chance of good performance. [citation needed]"

This is getting to the stage of being absolute ridiculous. One cannot make such outlandish comments/propositions without any sort of evidence to back it up. Otherwise, guys, anything goes. Let me demonstrate:

(1) Michael Jackson was abducted by Aliens [citation needed]. (2) Elvis Presley is still alive [citation needed].

I think you get the picture. I'm all for common general knowledge being out there without citations: e.g. "Elvis was known as the 'king' of rock" etc but to make such comments as above is absolutely ridiculous without providing the actual citation.

I'm for removing till someone can actually find the source for the top most proposition (i.e. 'evidence suggests...' --ToyotaPanasonic 12:51, 16 January 2007 (UTC)

Investments - (Frank K Reilly, Drydon 2nd edition page 569) quotes the Sharpe study (William F Sharpe Journal of business 39) "...there was only a slight relationship between size and performance" and "Good performance was associated with low expense ratios". The best quote on performance comes from Michael C Jensen "there is very little evidence that any individual fund was able to do significantly better than that which we expected from mere random chance".

So if we assume that small firms are in a start-up phase then they will tend to have lower expense ratios (to attract clients) and thus tend to outperform. However there are the small firms that were large firms but have managed to lose all their client's assets.

++++++++++++

The other citation requested - "A graduate degree or Chartered Financial Analyst certification may be required to move up in the ranks of investment management." For passive managers (e.g - in most cases - Vanguard) this is true as constant portfolio balancing requires a specialised skill, however, for active (alpha) managers it is (risk weighted) investment performance that determines career success.

Use outside of the financial industry

• I added the following comment which was later incorrectly classified as "vandalism". It is not and is entirely relevent to the topic since the term "investment management" is actually commonly used for investments like IT portfolios, etc.

Outside of the financial industry, the term "investement management" is often applied to investments other than financial instruments. Investments are often meant to include projects, brands, patents and many things other than stocks and bonds. Even in this case, the term implies that rigorous financial and economic analysis methods are used. Applied Information Economics is one approach developed to apply statistically and economically sound optimization methods to portfolios of otherr types of investments.

I'll leave this up here and ask why anyone would think this is vandalism. If I get no response then I'm adding it back in.

Hubbardaie 15:00, 11 June 2007 (UTC)

As far as I can tell from the history, the user meant to revert a vandalism back to the version you wrote- but they didn't notice that the vandal had made more than one edit. I'm going to try to fix it and a few other things that have crept in the last couple of weeks. —Elipongo (Talk contribs) 04:27, 22 June 2007 (UTC)

On closer examination, your edit was never deleted in the first place. It is and has been in the article since you added it. I've cleaned up a couple of minor vandalisms that were put in anyways. Cheers!—Elipongo (Talk contribs) 04:34, 22 June 2007 (UTC)

Maybe it would be better to include this information here Fixed assets management. simonthebold 10:10, 27 July 2007 (UTC)

Large deletions

Someone might want to check whether the large deletions by Snake7man on 10 December 2007 were warranted. Nurg (talk) 09:26, 14 April 2008 (UTC)

Yes, I've repaired things as much as possible, however some minor changes may have been missed. simonthebold (talk) 23:36, 8 August 2008 (UTC)

Investment Company

I've read the entire page called Investment company and this page which talks at length about "Investment Management Firms". I cannot decide if they are the same thing or what. I look up many companies that are called "Investment Management Firms" on here, like Black Rock. This mean they are an Investment Company? —Preceding unsigned comment added by 66.57.190.8 (talk) 22:30, 14 February 2010 (UTC)

No need to merge

Investment management and asset quality are related but sufficiently different things to be on different pages, provided the latter has sufficient sourcing. I'm going to remove the merger calls. The Sound and the Fury (talk) 17:04, 4 January 2012 (UTC)

Proposed merge of Money management into Investment management

The Money management article currently seems to have similar scope to the Investment management article, but of much poorer quality. I don't have expertise in this area. After the merge is complete, I suggest converting Money management into a disambiguation page pointing to Investment management, Wealth management, and Personal finance. Daask (talk) 22:02, 17 July 2021 (UTC)

That is a good idea and should be done. Money management is the broadest term (and almost so broad it is not particularly useful), whereas the main professions in money management are investment management and wealth management. 78.19.234.110 (talk) 23:23, 3 September 2022 (UTC)

  Y Merger complete. Klbrain (talk) 12:25, 22 September 2022 (UTC)

India Education Program course assignment

This article was the subject of an educational assignment supported by Wikipedia Ambassadors through the India Education Program.

The above message was substituted from {{IEP assignment}} by PrimeBOT (talk) on 19:58, 1 February 2023 (UTC)

Trust wallet

Someone had a trust wallet and there money went missing 2603:9001:64F0:8450:9E:D845:341F:FD28 (talk) 04:44, 5 April 2024 (UTC)

Wiki Education assignment: Research Process and Methodology - SP24 - Sect 201 - Thu

This article was the subject of a Wiki Education Foundation-supported course assignment, between 4 March 2024 and 4 May 2024. Further details are available on the course page. Student editor(s): Wangzitong1018 (article contribs).

— Assignment last updated by Wangzitong1018 (talk) 22:49, 11 April 2024 (UTC)