Strategies of Banks and Other Financial Institutions

Cases on Investment Management Companies

4.1 Introduction

There are approximately 9600 open-ended investment funds of varying sizes offered in the United States and 63,000 open-ended investment funds whose shares are offered to the public outside the United States.

One of the megatrends noted by investors is the aging of the world’s population. Individuals are also living much longer in retirement without adequate preparation. Corporate and public pension plans face significant shortfalls in meeting future needs for retirement income. There has been a shift from employer-funded defined benefit (DB) plans to defined contribution (DC) plans, which transfer risk to individuals. Another major trend is the secular shift to passive investing in exchange-traded ...