This practical guide provides a comprehensive overview of professionally managed assets, or investments in which all portfolio decisions and rebalancing are delegated to a fund manager or third-party advice service. Savvy investors looking to achieve a better understanding of the nuances, benefits, and drawbacks of using these products will find the answers they are looking for in The Handbook of Professionally Managed Assets, no matter whether they would like to learn more about mutual funds or hedge funds.
There is a considerable lack of knowledge among the investing public about how to properly construct a well-diversified portfolio of investments that includes a selection of professionally managed assets. As a long-standing financial planner, attorney, and educator, Keith Fevurly remedies this issue in The Handbook of Professionally Managed Assets by clearly presenting the major categories of professionally managed assets and revealing the best tactics for investing in these vehicles. Along the way, he reveals each asset's risks and rewards, and he also provides the in-depth knowledge and information investors need to confidently select the right assets for their portfolios.
Filled with valuable insights for everyone from financial professionals to individual investors, The Handbook of Professionally Managed Assets stands alone in its ability to shed light on the many investment vehicles that fall under the larger umbrella of professionally managed assets. With topics as wide-ranging as mutual funds, closed-end funds, unit investment trusts, exchange traded funds, hedge funds, managed futures, and more, this invaluable resource will give you the information you need to build a prosperous financial future for yourself and your clients.
What you'll learn
Among other topics, The Handbook of Professionally Managed Assets will cover:
Why financial advisors and sophisticated individual investors should use professionally managed assets as part of an overall investment strategy.
Mutual funds, including the history of their growth in the financial industry and the differences between actively and passively managed mutual funds.
The proper use of Unit Investment Trusts (UITs), particularly in the context of municipal bond trusts, which is the primary asset included in a UIT.
Who invests in hedge funds, including whether or not you should decide to invest in hedge funds as a self-directed investor.
Why managed futures are great assets to include in a risk-mitigating investment strategy for high-worth clients.
And much more.
Who this book is for
Designed specifically for professional investment advisors and sophisticated individual investors, The Handbook of Professionally Managed Assets will answer the myriad of questions financial professionals have about everything from mutual funds to managed futures.
Table of Contents
- Title Page
- Apress Business: The Unbiased Source of Business Information
- About the Author
- About the Technical Reviewer
PART I: An Overview of Professionally Managed Assets
CHAPTER 1: Understanding Professionally Managed Assets
- The Definition of a Professionally Managed Asset
- The Ownership and Positioning of Professionally Managed Assets
- Self-Directed Investment Accounts
- Life Cycle Investing
- Types of Professionally Managed Assets
- Open-End Investment Companies (Mutual Funds)
- Closed-End Funds
- Unit Investment Trusts (UITs)
- Exchange-Traded Funds (ETFs)
- Hedge Funds
- Managed Futures
- Private Equity Funds
- Limited Partnership Investments
- Real Estate Investment Trusts (REITs)
- Individually Managed Accounts (IMAs) and Separately Managed Accounts (SMAs)
- Variable Life Insurance
- Variable Annuities
CHAPTER 2: Why Professionally Managed Assets?
- Individual Investing
- Lack of Investor Time and Expertise
- Lack of Diversification in Individual Securities
- Higher Transaction Costs in Individual Securities
- Difficulty of Effective Stock Picking
- The Advantages of Professionally Managed Assets
- Increased Diversification
- The Ability to Access Professional Management at a Relatively Low Cost
- The Ability to Participate in Preferred Investments
- Owner Liquidity
- Government Oversight
- The Disadvantages of Professionally Managed Assets
- Less Control Over the Recognition of Taxable Income
- The Inability to Customize a Portfolio
- Managed-Money Investment Vehicles in Today’s Marketplace
- CHAPTER 1: Understanding Professionally Managed Assets
PART II: Mutual Funds
- CHAPTER 3: The Growth of Mutual Funds
- CHAPTER 4: Long-Term Investing in Mutual Funds
- CHAPTER 5: Mutual Fund Performance Measures and Selection Criteria
PART III: Other Professionally Managed Assets under the 1940 Act
- CHAPTER 6: Closed-End Funds
- CHAPTER 7: Unit Investment Trusts
- CHAPTER 8: Exchange-Traded Funds
PART IV: Professionally Managed Assets for High-Net-Worth Investors
- CHAPTER 9: Hedge Funds
CHAPTER 10: Managed Futures
- Futures, Futures Contracts, and Futures Markets
- What Is a Managed Futures Fund or Program?
- Advantages of Managed Futures
- Disadvantages of Managed Futures
- Who Should Participate in a Managed Futures Fund or Program?
- What Selection Criteria Should Be Used before Including Managed Futures in a Portfolio?
- How to Evaluate the Performance of a Managed Futures Fund or Program
CHAPTER 11: Private Equity Funds
- Private Equity
- What Is a Private Equity Fund?
- Advantages of Private Equity Funds
- Disadvantages of Private Equity Funds
- Who Should Invest in Private Equity Funds?
- What Selection Criteria Should Be Considered before Investing in a Private Equity Fund?
- How to Evaluate the Performance of a Private Equity Fund
PART V: Alternative Professionally Managed Assets
CHAPTER 12: Limited Partnerships and Real Estate Investment Trusts
- Private Limited Partnerships
- Public Limited Partnerships
- What Is a Master Limited Partnership (MLP)?
- Advantages and Disadvantages of MLPs
- Disadvantages of MLPs
- Who Should Invest in MLPs?
- What Selection Criteria Should Be Considered before Investing in an MLP or MLP Fund?
- How to Evaluate the Performance of MLPs
- What Is a Real Estate Investment Trust?
- Advantages of REITs
- Disadvantages of REITs
- Who Should Invest in REITs?
- What Selection Criteria Should Be Considered before Investing in a REIT?
- How to Evaluate the Performance of REITs
- CHAPTER 13: Individually and Separately Managed Accounts
- CHAPTER 12: Limited Partnerships and Real Estate Investment Trusts
PART VI: Managed Assets and Life Insurance Companies
- CHAPTER 14: Variable and Variable Universal Life Insurance
CHAPTER 15: Variable Annuities
- Immediate Fixed Annuity
- Equity-Indexed Annuity
- Longevity Insurance Annuity
- Deferred Income Annuity
- What Is a Deferred Variable Annuity?
- Advantages of a Variable Annuity
- Disadvantages of a Variable Annuity
- Who Should Purchase a VA?
- What Selection Criteria Should Be Used in Purchasing (or Maintaining) a VA?
- How to Evaluate VA Performance
- Comparison of VA Performance with Mutual Funds
- PART VII: Summary
- Glossary: Glossary
- Title: The Handbook of Professionally Managed Assets: A Definitive Guide to Profiting from Pooled Investments
- Release date: November 2013
- Publisher(s): Apress
- ISBN: 9781430260196