The Fund Industry


Every investor, student of finance and participant in the mutual fund industry needs to read this book.


The Fund Industry: How Your Money is Managed details how mutual funds are marketed, regulated, and invested in stocks and bonds. The book also describes the critical factors needed to choose a specific fund for your investment or retirement plan, including what to look for when reading prospectuses, shareholder reports and third party reviews.

This essential reference guide:

  • Discusses the spread of mutual funds to Asia, Europe, and Latin America
  • Compares mutual funds to other investment vehicles such as hedge funds and ETFs
  • Shows how to sort mutual funds by categories and subcategories based on security type and investment objective

The Fund Industry is the most in-depth and up-to-date guide to navigating the mutual fund industry, written in an accessible style with many examples and charts.

Cover price of this title is $75, but NICSA has copies available at deeply discounted prices. 

Please note:
Member pricing is available exclusively for members in good standing.  To check on your membership status, please contact NICSA at

Order Size Member Price Non-Member Price
1 - 4 copies $41.25 each $46.00 each
5 - 24 copies $37.50 each $41.25 each
25 - 99 copies $30.00 each $33.00 each
100 - 499 copies $26.25 each $28.99 each
500 copies or more $22.50 each $24.75 each


1 - 4 copies: $46.00 each
5 - 24 copies: $41.25
25 - 99 copies: $33.00 each
100 - 499 copies: $28.99 each
500 copies or more: $24.75 each

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.

Foreword by Don Phillips.



Section I: An Investors Guide to Mutual Funds.

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.

Section II: Mutual Fund Portfolio Management.

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.

Section III: Selling Investment Funds.

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.

Section IV: Operations and Finance.

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.

Section V: The Internationalization of Mutual Funds.

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.


About the Authors.




How The Fund Industry Manages Your Money
NEW YORK (TheStreet) -- Robert Pozen, author of "The Fund Industry" and MFS Chairman Emeritus, discusses the most pressing issues affecting the mutual fund industry.
Fri 02/11/11 11:47 AM EST -- Gregg Greenberg

How your money is managed: The Mutual Fund industry up close (podcast), Zach Miller
"Along with Bob Pozen, Hamacher is the co-author of the new book, The Fund Industry: How Your Money is Managed (Wiley Finance).  Its a good read and an important book to have in your investment library because its scope is so broad."

Pozen on the Economy
The Emily Rooney Show
"What a difference a month makes. When we last talked to our financial guru Bob Pozen in late February, the stock-market was rallying and there was talk of a possible budget compromise on Capitol Hill. Now, jittery markets are reeling from the disaster in Japan, war in Libya, and a possible government shutdown as early as this Saturday. Here to discuss that -- and the affects of all this uncertainty on our still fragile economy -- is Bob Pozen, our financial guru, chairman emeritus of MFS Investment Management and co-author of The Fund Industry: How Your Money is Managed."

Choosing the Right Mutual Fund Company
Nightly Business Report
"TOM HUDSON: One out of three Americans has money socked away in mutual funds investing for retirement, college tuition or a rainy day, but with more than 5,000 funds, how do you separate those that may be good stewards of your money and not just focused on selling you the fund?"


Out of the Shadows
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.
>Read More

Morning Star Advisor Magazine
The Global Fund-Leadership Playoffs: Europe vs. the U.S.
"Europe has pulled ahead in the competition for leadership in the global fund industry, pushing the United States, the longtime pacesetter, into second place."
Why European Funds are outgunning US Rivals
"While the mutual fund was born in the United States, its European cousin – the Ucits fund – is becoming the dominant form of collective investing around the world."


The Washington Post
A bond backfire after racing to buy long-term Treasuries and sell tax-exempt funds
"Investors in bond funds made two major moves over the past year. Many bought long-term U.S. Treasury funds to obtain higher yields at what they thought was relatively low risk. During the same period, many investors sold tax-exempt bond funds because of concerns about the finances of local governments."


Book Review from: The Investors Guide to Closed-End Funds (April, 2011)
"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"


Why Balanced Funds Trump Target-Dates in Retirement Plans
The goals behind target-date funds are admirable, but its my opinion that they are inferior to balanced funds as a defined contribution plan default option. This conclusion stems from the costs of target-date funds compared to balanced funds, as well as the risks that originate from the target-date funds set-it-and-forget-it approach to investing.
>Read More


The Winning Formula for US Asset Managers
"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."
>Read More

The Fund Industry: Learn How Your Money Is Really Managed
"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)
>Read More

The Fund Industry: How Your Money is Managed
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."
>Read More

Bob Pozen Discusses His New Book, The Fund Industry: Weekend Interview
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..."
>Read More

The art (and science) of hiring good people
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..."
>Read More

A Review of The Fund Industry: How Your Money is Managed
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..."
>Read More


Authors Fund Advice Prompts a Mutual Feeling
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."
>Read More


Pozen book gives insight into mutual funds
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...."
>Read More

Demystifying the Fund Universe
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."
>Read More