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Investment management |
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Investment managementThe process of managing money. Also called portfolio management and money management.Investment management Similar MatchesStatutory investmentStatutory investmentAn investment that a trustee is authorized to make under state law. Investment Company Institute (ICI)Investment Company Institute (ICI)A national industry group of investment companies, including mutual funds, founded in 1940. Investment valueInvestment valueApplies mainly to dealer securities. Fixed income value of a convertible, the price at which the convert would have to sell as a straight debt instrument relative to the yield of other bonds of like maturity, or size, and quality; represents a presumed floor to the bond, assuming the continued creditworthiness of the issuer and the general level of interest rates. Bond value. See: conversion value. Investment trustInvestment trustA company quoted on the London Stock Exchange which invests its shareholders' funds in the shares of other companies.Points to note about investment trusts are:They enable private investors with limited funds to get diversified share ownership and without incurring heavy dealing costs.They enable investors to get exposure to markets that they may not be able to reach themselves (e.g. to emerging countries). Different trusts also have differing objectives (e.g. growth or income).They enable investors who don't have the skill or inclination to invest directly in companies to get the advantage of professional fund management (although see point below 6)It is easy for investors to drip-feed money into investment trusts over time by using a monthly savings plans.Unlike unit trusts, investment trusts are closed end funds. That is, there is a fixed number of shares in circulation, and the price of those shares is determined like other quoted shares - by supply and demand. This means that IT shares often trade at a discount to their Net Asset value (i.e. the value of their underlying investments) and it also makes IT shares more volatile than unit trust prices.ITs are actively managed funds which try to produce total returns better than the market average. However once management charges are taken into account, they often fail to meet this target. Hence the move by many investors to passive funds - trackers and index funds - which have lower charges. Capital investmentCapital investmentSee: Capital expenditure. Further SuggestionsInvestment climateInvestment certificate dividend reinvestment plan Investment club Investment Income investment company Passive investment strategy Reinvestment effect alternative investment Investment company Foreign Direct Investment Direct investment Investment Valuation Model (IVM) Recognised Investment Exchange Investment Risk Normal investment practice Foreign investment argument for protection Legal investments Alternative investments Investment philosophy Reinvestment risk Undertakings for Collective Investment in Tradable Securities Passive investment management Personal Investment Authority Registered investment company |
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