ROBERT POZEN is Chairman Emeritus of MFS Investment Management®, as well as a Senior Lecturer at the Harvard Business School and a Senior Fellow at the Brookings Institute. He was previously vice chairman of Fidelity Investments; chairman of the SEC Advisory Committee on improving financial reporting; and a member of the Presidential Commission to Strengthen Social Security. A prolific author of editorials in leading newspapers, in 2009 he published the book Too Big to Save?: How to Fix the U.S. Financial System. Pozen graduated summa cum laude from Harvard College and earned a doctor of laws from the Yale Law School where he was an editor of the Yale Law Journal.
THERESA HAMACHER, CFA, is President of NICSA, the National Investment Company Service Association, and the former chief investment officer for Pioneer Investment Management USA, where she supervised a team of over fifty investment professionals managing more than $15 billion in global equity and fixed income assets for mutual fund and institutional clients. Previously, she was the chief investment officer for Prudential Mutual Funds. In 1984, she ran the Prudential-Bache (Tax-Managed) Utility Fund, the top-performing mutual fund in the United States. She is coauthor of The Pocket Idiots Guide to Investing in Stocks. Hamacher is a summa cum laude graduate of Yale College and a Chartered Financial Analyst.
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Chapter 1: Investing Through Mutual Funds
- Advantages and Disadvantages of Mutual Funds.
- History and Growth.
- Regulators and Industry Associations.
- Chapter Summary.
Chapter 2: How Mutual Funds Work.
- Buying and Selling Fund Shares.
- The Pass-Through Tax Status of Mutual Funds.
- A Virtual Corporation.
- Ethical Standards.
- Alternatives to Mutual Funds.
- Chapter Summary.
Chapter 3: Researching Funds: The User Guides.
- Mutual Funds and Disclosure.
- The Summary Prospectus.
- Beyond the Summary Prospectus.
- Using the User Guides.
- Chapter Summary.
Chapter 4: Comparing Mutual Funds.
- Delineating Your Own Investment Objectives.
- Evaluating Performance.
- The Taxonomy of Mutual Funds.
- Chapter Summary.
Chapter 5: Portfolio Management of Stock Funds.
- Stock Research.
- Putting It All Together: Managing a Stock Fund.
- Chapter Summary.
- Chapter 6: Portfolio Management of Bond Funds.
- Bond Fund Holdings.
- Putting it All Together: Managing a Bond Fund.
- Chapter Summary.
Appendix to Chapter 6: Bond Basics.
- Defining Characteristics of Bonds.
- Key Analytical Measures.
- Risks of Bond Investments.
Chapter 7: Portfolio Management of Money Market Funds.
- How – Exactly – the $1.00 NAV Works.
- Money Market Fund Holdings.
- Putting It All Together: Managing a Money Market Fund.
- Money Market Funds and the Financial System.
- Chapter Summary.
Chapter 8: Implementing Portfolio Decisions: Buying and Selling Investments.
- The Importance of Trading.
- The Evolution of the U.S. Stock Markets.
- The Role of the Mutual Fund Trader.
- Trading in Bond Funds.
- Chapter Summary.
Chapter 9: Mutual Funds as Institutional Investors.
- Mutual Funds as Stockholders and the Proxy Voting Process.
- Proxy Voting by Mutual Funds.
- Activism and Mutual Funds.
- Mutual Funds and Social Change.
- Proxy Voting Outside the United States.
- Chapter Summary.
Chapter 10: Retail Sales.
- What Sells Mutual Funds?
- The Intermediary Channel.
- The Direct Channel: No-Load Firms and Fund Supermarkets.
- Cross Channel Trends.
- Chapter Summary.
Chapter 11: Retirement Plans and Mutual Funds.
- The Tax Benefits of Qualified Retirement Plans.
- 401(k) Plans.
- Individual Retirement Accounts.
- The Future of Retirement Planning in the U.S.
- Distribution Planning.
- Chapter Summary.
Chapter 12: The Competition from Exchange-Traded Funds and Hedge Funds.
- Exchange-Traded Funds.
- Hedge Funds.
- Chapter Summary.
Chapter 13: Customer Service.
- The Role of the Transfer Agent.
- Technology and Shareholder Servicing.
- Transfer Agents as an Industry.
- Chapter Summary.
Chapter 14: Portfolio Recordkeeping and Valuation.
- A Day in the Life of the Fund Accountant.
- Valuation of Portfolio Holdings.
- Keeping Track of Portfolio Securities: The Custodian
- A Critical Link: Investment Operations.
- Behind the Scenes: The Independent Auditor.
- Chapter Summary.
Chapter 15: The Financial Dynamics of the Fund Management Industry.
- Expenses for Fund Investors.
- Management Fee Revenue: The Debate.
- Mergers and Acquisitions Involving Fund Sponsors.
- Chapter Summary.
Chapter 16: Cross-Border Investing.
- The Growth in Cross-Border Investing.
- Advantages and Risks of Investing Overseas.
- Operational Challenges of Investing Overseas.
- Putting It All Together: Managing a Global or International Fund.
- Chapter Summary.
Chapter 17: Cross-Border Asset Gathering.
- The Global Market for Investment Funds.
- Models for a Global Fund Business.
- The UCITS Model.
- European Pension Pooling.
- Chapter Summary.
Chapter 18: The Market for Investment Funds: Beyond the United States and Europe.
- Asia.
- The Americas ex U.S.
- Chapter Summary.
Money market mutual funds are now required to disclose their shadow NAVs. Robert Pozen and Theresa Hamacher, the authors of The Fund Industry: How Your Money is Managed, explain what this means to fund investors.
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"We can even envision this book as required reading for new employees of investment advisory firms or suggested reading for directors new to the investment company industry"
"For that purpose, I want to tell you about a brand new book - The Fund Industry: How Your Money is Managed (Wiley Finance).The book is written by Robert Pozen, Senior Lecturer at Harvard Business School, and Theresa Hamacher, President of NICSA. It is highly appointed, in our industry circles, as the ultimate fund industry companion - a book that will not be surpassed, not until its next edition - by the very same authors."
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"In 2009 more than 87 million Americans were invested in mutual funds, but it is unlikely that more than a handful outside of the industry had any idea how these funds work. Robert Pozen and Theresa Hamacher set out to educate the investor in The Fund Industry: How Your Money Is Managed (Wiley, 2011). The education is thorough, clear and enjoyable. I highly recommend it." (Review courtesy of: Seeking Alpha)
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HLS Forum on Corporate Governance and Financial Regulation (by Scott Hirst, co-editor)
"Robert Pozen and Theresa Hamachers The Fund Industry: How Your Money is Managed provides keen insights into the evolution of the money management industry. Pozen and Hamacher offer readers a comprehensive roadmap toward understanding the various types of funds offered for investors."
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AdvisorOne (by Joyce Hanson, AdvisorOne)
"Bob Pozen is a man who knows his way around the mutual fund industry. Just ask Presidents Obama and Bush, the SEC, Harvard Business School and the Massachusetts voters who have urged him to run for the U.S. Senate, not to mention mutual fun firms including Fidelity Investments and MFS Investment Management..."
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Investment News
"ROBERT C. POZEN IS CHAIRMAN emeritus of MFS Investment Management. As chairman from 2004 to 2010, he helped the firm overcome the 2003 market-timing scandals, which rocked it and other big fund..."
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Business Law Today
"Approximately 87 million Americans invest in mutual funds, either directly or through retirement accounts. These investors likely include 90 percent of househoulds with an ABA member. With the importance of these investments and the growth of the fund industry, Robert Pozen and Theresa Hamachers insightful book on fund operations--The Fund Industry: How Your Money is Managed--is a must read..."
Chicago Tribune
"The book is a tome on the mutual fund industry. But in one chapter he offers a handy, bullet-point
guide for what to look for when reading up on a fund before you invest in it."
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Pensions & Investments
"In a new book, "The Fund Industry: How Your Money Is Managed," Robert Pozen and Theresa Hamacher provide a valuable overview of the operations of the mutual funds industry...."
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The New York Times
"It isnt a book of mutual fund trivia; rather, the authors have created a comprehensive text for understanding how mutual funds function day to day."
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