“I think most people will find The Fund Industry one of the most informative books they’ve read in quite a while. … It shows that mutual fund investors know mighty little about where they’ve put their hard-earned money.”
— Brenda Jubin, Seeking Alpha, February 2011 “We can even envision this book as required reading for new employees of investment advisory fi rms or suggested reading for directors new to the investment company industry.”
— The Investor’s Guide to Closed-End Funds, April 2011 a Jubin, Seeking Alpha, February 2011
“ … a valuable overview of the operations of the mutual funds industry.”
— Pensions & Investments, April 2011
“… the book is more than worthwhile … it certainly makes the recommended reading list.”
—The New York Times, April 2011
Around the world, there are tens of thousands of mutual fundswith over $20 trillion in assets. The Fund Industry: How Your MoneyIs Managed gives you an inside look at how mutual fundsworkhow they invest money, distribute their shares to thepublic, and provide service to fund shareholdersand why theyhave become the investment vehicle of choice for investors aroundthe world.
Written by two fund expertsRobert Pozen, Chairman Emeritusof MFS Investment Management®, and Theresa Hamacher, Presidentof NICSAThe Fund Industry details:
The history and growth of mutual funds, as well as theiradvantages and disadvantages compared to alternative investmentvehicles, such as ETFs and hedge funds
How to evaluate funds, categorizing them by security type andinvestment objective and researching them using the prospectus,shareholder reports, and third-party reviews
How fund managers pick stocks and bonds, make trading decisions,and vote proxies
How mutual funds are sold through brokers, banks, insuranceagents, retirement plans, and fund supermarkets
The roles of the independent directors, transfer agents, andfund accountants
The opportunities and challenges of investing and gatheringassets internationally
The Fund Industry companion website offers readers additional,exclusive information, as well as a special section for teacherscontaining review and discussion questions, case studies, andsuggested readings.
From the Back Cover
The Fund Industry: How Your Money Is Managed"The authors have done a fabulous job in explaining all aspects of mutual funds in a cohesive, reader-friendly work. With over 90 million investors entrusting over $11 trillion to mutual funds and assuming more responsibility for their retirement, this book is quite timely. It should be required reading for all investors."
Andrew J. Donohue, former Director, Division of Investment Management, U.S. Securities and Exchange Commission
"This book will greatly enhance your understanding of the fund industry. It describes how money is managed, how portfolios are constructed, and how valuations are established; it provides tools to help you research and compare funds, looking at their performance, risk and expenses, and it discusses the growing importance of funds around the globe. It's rare to find so much useful information in a single book."
Mohamed A. El-Erian, CEO and co-CIO of PIMCO; author of When Markets Collide
"Don't sit back and assume that someone else is managing your money properly. Take the time to learn about money managers' incentives and the structures within which they operate and use this to guide your thinking about whom you should trust and on what basis. I only wish we had such transparent and honest operating instructions for the rest of the financial system."
Simon Johnson, coauthor of 13 Bankers; Professor, MIT Sloan School of Management
"This is a great book written with informed knowledge and insight, but also with grace and style. It is a must-read for anyone interested in the fund industry in Asia, Europe, and the United States."
Lord Myners, Former UK Treasury Minister
"Just as veteran stock fund managers prize their tattered copies of Ben Graham and David Dodd's Security Analysis, coming generations of fund industry leaders will cling to this essential text. There's no other book that gives readers such a thorough overview of how the fund industry operates, its evolution, its regulation, and what makes it tick."
From the Foreword by Don Phillips, Managing Director, Morningstar, Inc.
About the Author
ROBERT POZEN is Chairman Emeritus of MFS InvestmentManagement®, as well as a Senior Lecturer at the HarvardBusiness School and a Senior Fellow at the Brookings Institute. Hewas previously vice chairman of Fidelity Investments; chairman ofthe SEC Advisory Committee on improving financial reporting; and amember of the Presidential Commission to Strengthen SocialSecurity. A prolific author of editorials in leading newspapers, in2009 he published the book Too Big to Save?: How to Fix the U.S.Financial System. Pozen graduated summa cum laude from HarvardCollege and earned a doctor of laws from the Yale Law School wherehe was an editor of the Yale Law Journal.THERESA HAMACHER, CFA, is President of NICSA, theNational Investment Company Service Association, and the formerchief investment officer for Pioneer Investment Management USA,where she supervised a team of over fifty investment professionalsmanaging more than $15 billion in global equity and fixed incomeassets for mutual fund and institutional clients. Previously, shewas the chief investment officer for Prudential Mutual Funds. In1984, she ran the Prudential-Bache (Tax-Managed) Utility Fund, thetop-performing mutual fund in the United States. She is coauthor ofThe Pocket Idiot's Guide to Investing in Stocks. Hamacher is asumma cum laude graduate of Yale College and a Chartered FinancialAnalyst.
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 Idiot's Guide to Investing in Stocks. Hamacher is a summa cum laude graduate of Yale College and a Chartered Financial Analyst. 
