ADMS 4501 Lecture Notes - Lecture 4: Asset Management, Investment Strategy, Wealth Management
Document Summary
Private management and advisory firms : investment firms: clients pay fees for uniquely/ customised investment advice. Each person"s money is invested into unique accounts. Investment strategy: guided by firm"s overall investment strategy. Two types : asset management : institutional investors, wealth management :high network individuals. Investment ( fund ) companies : general solution. Each person"s money is pooled in to invest in a fund ( portfolio of securities) Two types: closed end :public companies , traded on the exchange at a discount ( due to liquidity, open end ( mutual funds) shares issued at nav. Front load funds: commissions are taken off in the beginning when you buy the fund. low load funds/ deferred sales charges : the commissions are taken off when the funds are sold. Your fund at the end = 920 x 1. 15 = 1058. No load fund : 1% redemption, earns 12% Your fund at the end = 1000 x 1. 12 = 1120.