Mutual Funds
Portfolio Structures, Analysis, Management, and Stewardship
Published on 8. October 2009
358 pages
978-0-470-53089-4 (ISBN)
Description
An authoritative, must-read guide to making more informeddecisions about mutual funds
Providing a balance of theory and application, thisauthoritative book will enable you to evaluate the variousperformance and risk attributes of mutual funds. It covers a broadrange of topics, including understanding the advantages anddisadvantages of mutual funds, evaluating stock/bond allocationswithin fund portfolios, assessing fund diversification risk,measuring fund returns and risk, and making fund buy/selldecisions.
While informative chapters combine clear summaries of existingresearch with practical guidelines for mutual fund analysis,step-by-step decision checklists guide you through the selection ofvarious mutual funds.
* Puts the risks and rewards of mutual fund investing inperspective
* Skillfully examines how to select and evaluate the best mutualfunds
* Outlines mutual fund service advantages and disadvantages
* Discusses the long- and short-term effectiveness of mutualfunds
Covering major theoretical and management issues in mutual fundanalysis and portfolio management, this book is an authoritativeguide.
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Book
11/2009
Wiley
€88.00
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Person
JOHN A. HASLEM, PHD, is Professor Emeritus of Finance at the University of Maryland. He also served as the founding academic affairs dean and founding chair of the finance department. Haslem received the Panhellenic Association's "Outstanding Teacher Award" for his mutual funds course--the first in the curriculum of a school of business. His research has appeared in numerous leading finance journals, several books, and over 100 research articles with a primary focus on mutual fund analysis, regulation, and disclosure.
Content
- Mutual Funds: Portfolio Structures, Analysis, Management, and Stewardship
- Contents
- Introduction
- Part I: Mutual Funds: Nature, Regulation, and Costs
- Chapter 1: The Nature of Mutual Funds
- ATTRIBUTES OF THE OPEN-END MUTUAL FUND
- MUTUAL FUNDS AND THE COMPETITIVE ENVIRONMENT
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 2: Mutual Fund Regulation and Issues
- HISTORICAL PERSPECTIVE
- REGULATION OF OPEN-END FUNDS
- RECENT REGULATORY ISSUES IN OPEN-END FUNDS
- CURRENT REGULATORY ISSUES IN FUNDS
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 3: The Economics of Mutual Funds
- SIZE AND STRUCTURE OF THE MUTUAL FUND INDUSTRY
- MUTUAL FUND CREATION AND MORTALITY
- REGULATION
- SCALE ECONOMIES: EXPENSES AND FEES
- SCALE DISECONOMIES: FUND RETURNS
- BENEFITS OF MUTUAL FUND INVESTING TO FUND SHAREHOLDERS
- DRAWBACKS OF MUTUAL FUND INVESTING
- FINANCIAL BARRIERS TO MUTUAL FUND INVESTING AND REDEMPTION
- MUTUAL FUND GOVERNANCE AND AGENCY PROBLEMS
- FUND MANAGER TOURNAMENT BEHAVIOR
- FUND FAMILY MARKETING AND CROSS-SUBSIDIZATION
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 4: Mutual Fund Fees and Expenses
- LOADS
- EXPENSES
- MANAGEMENT FEES
- RULE 12B-1 FEES
- "OTHER" EXPENSES WITHIN THE EXPENSE RATIO
- LOAD VERSUS EXPENSE RELATION
- DISTRIBUTION CHANNEL
- ETFs AND CLOSED-END MUTUAL FUNDS
- TAXES
- FEES AND EXPENSES INTERNATIONALLY
- CHARGES NOT INCLUDED IN THE EXPENSE RATIO
- PARTITIONING ACTIVELY MANAGED MUTUAL FUND FEES BASED ON ALPHA AND BETA SEPARATION
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Part II: The Realities and Analogies of Investing
- Chapter 5: How Financial Markets Work
- HOW MARKETS SET PRICES
- GREAT COMPANIES DO NOT MAKE HIGH-RETURN INVESTMENTS
- FOR EVERY BUYER THERE MUST BE A SELLER
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 6: Active versus Passive Investing
- WHOSE INTERESTS DO THEY HAVE AT HEART?
- WHEN EVEN THE BEST ARE NOT LIKELY TO WIN THE GAME
- INVESTMENT GRAFFITI
- OUTFOXING THE BOX
- APPENDIX: INVESTMENT VEHICLE RECOMMENDATIONS
- REFERENCES
- ABOUT THE AUTHOR
- Part III: Fund Types and Comparative Performance, Efficient Markets, Asset Allocation, and Morningstar Analysis
- Chapter 7: Efficient Markets and Mutual Fund Investing: The Advantages of Index Funds
- JUSTIFICATION FOR USING INDEX FUNDS
- EVIDENCE FROM U.S. INDEX FUNDS
- EVIDENCE IN FAVOR OF PASSIVE MANAGEMENT IN WORLD FINANCIAL MARKETS
- ACTIVE VERSUS PASSIVE MANAGEMENT IN THE BOND MARKET
- COSTS ARE IMPORTANT DETERMINANTS OF NET RETURNS
- MUTUAL FUNDS VERSUS ETFs
- STOCK MARKET RETURNS VERSUS INVESTOR RETURNS
- STYLE OR FACTOR TILTS IN MUTUAL FUNDS
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 8: Asset Allocation: Design and Care of Portfolios
- POLICY ALLOCATION
- REBALANCING
- STRATEGIC ASSET ALLOCATION
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 9: The Morningstar Approach to Mutual Fund Analysis-Part I
- CYCLE OF FEAR AND GREED
- RISK MANAGEMENT
- APPROACHES TO PORTFOLIO CONSTRUCTION
- TOOLS FOR ANALYZING FUNDS
- MUTUAL FUND ANALYSIS TOOLS
- RETURNS-BASED ANALYSIS
- SAMPLE FUND COMPARISON-HISTORICAL PERFORMANCE
- RISK AND RISK-ADJUSTED PERFORMANCE MEASURES
- MODERN PORTFOLIO THEORY STATISTICS
- SAMPLE FUND COMPARISON-RISK AND RISK-ADJUSTED PERFORMANCE MEASURES
- MORNINGSTAR RATINGTM FOR FUNDS
- CONCLUSIONS
- ABOUT THE AUTHORS
- Chapter 10: The Morningstar Approach to Mutual Fund Analysis-Part II
- HOLDINGS-BASED ANALYSIS
- INCOME, COSTS, AND TAXES
- QUALITATIVE ANALYSIS
- CONCLUSIONS
- ABOUT THE AUTHORS
- Chapter 11: Building a Portfolio of Mutual Funds: A Morningstar Approach
- APPROACHES TO PORTFOLIO CONSTRUCTION
- FUND SELECTION
- PORTFOLIO 1: A LESS DIVERSIFIED APPROACH
- PORTFOLIO 2: A WELL-BALANCED APPROACH
- ANALYSIS OF THE PORTFOLIOS
- ONGOING MAINTENANCE
- CONCLUSIONS
- ABOUT THE AUTHORS
- Chapter 12: Performance of Actively Managed versus Index Funds: The Vanguard Case
- INTRODUCTION
- METHODOLOGY
- IN DEFENSE OF GEOMETRIC ALPHA
- TRACKING INDEXES FOR THE OLD FUNDS
- PROWESS OF STYLE JUMPING AND EQUITY CHOICE FOR THE OLD FUNDS
- PRESCIENT STYLE JUMPING?
- ALPHA FELL
- HOW HAVE THE YOUNG FUNDS PERFORMED?
- DID R2 PREDICT PERFORMANCE (INCLUDING YOUNG FUNDS)?
- IS THE PAST PROLOGUE? DID PAST PERFORMANCE PREDICT FUTURE PERFORMANCE?
- DID A COMBINATION OF R2 AND PAST ALPHA PREDICT PERFORMANCE?
- DID MORNINGSTAR STARS PREDICT?
- DID DAN WIENER'S RATINGS PREDICT?
- BEST PREDICTION EQUATION
- IS WIENER RIGHT THAT VANGUARD'S MANAGED FUNDS ARE BETTER THAN ITS INDEX FUNDS?
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 13: Classic and Enhanced Index Funds: Performance and Issues
- VANGUARD
- DIMENSIONAL FUND ADVISORS
- WISDOMTREE'S APPROACH TO FUNDAMENTAL INDEXATION
- SOME EVALUATIONS OF FUNDAMENTAL INDEXATION
- STYLE ANALYSIS TO COMPARE VANGUARD AND DFA
- WISDOMTREE VERSUS VANGUARD: WHICH IS BETTER?
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 14: Mutual Funds versus Exchange-Traded Funds
- A BRIEF HISTORY OF ETFs
- HOW OPEN-END PORTFOLIO ETFs WORK
- IMPROVING ETFs
- ETF AND MUTUAL FUND COMPARATIVE ECONOMICS
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Part IV: Mutual Funds at the Crossroads
- Chapter 15: The Challenge to Mutual Fund Stewardship
- CHALLENGE TO STEWARDSHIP
- INDUSTRY STRUCTURE AND SCANDALS
- MISALIGNED INTERESTS
- MARKET RETURNS VERSUS FUND AND INVESTOR RETURNS
- FUND STEWARDSHIP
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 16: Identifying Mutual Fund Stewardship
- FIVE DIMENSIONS OF ANALYSIS
- COMPLEMENTS TO BOGLE'S APPROACH
- STEWARDSHIP FUND (OR NOT)
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 17: Normative Transparency of Mutual Fund Disclosure
- DISCLOSURE AS AN EFFECTIVE REGULATORY TOOL
- NORMATIVE TRANSPARENCY OF DISCLOSURE
- DISCLOSURE TEMPLATE
- NORMATIVE TRANSPARENCY AND THE EXPENSE RATIO
- CURRENT SEC EXPENSE RATIO
- THE NEW TOTAL EXPENSE RATIO
- 12b-1 FEES AND MULTIPLE SHARE CLASSES
- TRANSACTION COST ISSUES
- CONCLUSIONS: NORMATIVE DISCLOSURE, THE
- EXPENSE RATIO, AND REGULATORY CHANGE
- REFERENCES
- ABOUT THE AUTHOR
- Chapter 18: A Design for the Mutual Funds of the Future
- THE VANGUARD VISION
- A DESIGN FOR THE FUTURE
- CONCLUSIONS
- REFERENCES
- ABOUT THE AUTHOR
- Index
