March 2019
Beginner
720 pages
24h 22m
English
Content preview from Portfolio Management
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
CHAPTER 14Incentives, Ethics, and Policy
Chapter Outline
- 14.1 Introduction
- 14.2 The Investment Company Business Model
- 14.3 Incentives for Businesspeople and Portfolio Managers
- 14.4 Ethical Situations
- 14.5 Industry Guidelines for Good Business Practices
- 14.6 Internal Company Policies to Protect the Franchise
- 14.7 Effective Manager and Analyst Compensation Policies
14.1 INTRODUCTION
A successful investment management business requires thoughtful business practices as well as effective portfolio management. Chapters 1–13 of this book have described techniques to manage investment portfolios. Risk and performance goals were defined, and strategies were proposed to attain those goals. It was generally assumed that portfolio managers would set goals and act in the best interests of their clients. This chapter takes a different tack. It examines the motivation and implications of portfolio managers acting in their own best interests.
This chapter discusses the business incentives for portfolio managers who are hired by investment clients. These clients may include institutional investors such as pension plans, endowments and foundations, or individual clients, including mutual fund, high-net-worth, and 401(k) investors. The rewards for success in the investment business can be large, and as a result the incentives are strong for growing assets under management. Each of these client groups has unique goals, but ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.