An Introduction to Mutual Funds Worldwide

This guide explains what mutual funds are, how they have developed and how they are used, regulated and administered across the globe. Both open-ended and closed-ended funds are described and the differences between the international markets, particularly USA, Europe and UK are addressed. Written by successful trainer and consultant, Ray Russell, the material reflects the growth and importance across the globe of mutual funds as a means of investing in worldwide economic development, whether to build a fund for retirement or otherwise. Readers will gain a basic appreciation of Mutual funds in their many forms, advocating the use of the mutual fund as a sensible, efficient and ultimately rewarding means of investment. It covers the origins, purpose, development, uses, operation and regulation of mutual funds and draws attention to similarities and differences between major jurisdictions, commenting on their unique features and approaches.

This guide explains what mutual funds are, how they have developedand how they are used, regulated and administered across the globe.Both open-ended and closed-ended funds are described and thedifferences between the international markets, particularly USAEurope and UK are addressed.Written by successful trainer and consultant, Ray Russell, thematerial reflects the growth and importance across the globe ofmutual funds as a means of investing in worldwide economicdevelopment, whether to build a fund for retirement or otherwise.Readers will gain a basic appreciation of Mutual funds in theirmany forms, advocating the use of the mutual fund as a sensibleefficient and ultimately rewarding means of investment. It coversthe origins, purpose, development, uses, operation and regulationof mutual funds and draws attention to similarities and differencesbetween major jurisdictions, commenting on their unique featuresand approaches.

Preface ixAbout the author xi1 INTRODUCTION 11.1 Collective investment 31.2 History 61.3 Construction and authorisation 101.4 Growth and development 152 THE MANAGEMENT OF FUNDS 252.1 Who runs mutual funds? 262.2 What's in a name? 282.3 Benefits of mutual funds 302.4 Uses of mutual funds 352.5 Range of investment aims 402.6 Performance statistics 413 REGULATION 453.1 Background and purpose 463.2 The process of authorisation 623.3 Fund management 643.4 Marketing 703.5 Administration 723.6 Investor protection 744 CONSTITUTION AND CONSTRAINTS 794.1 Establishment, set-up and changes 804.2 Scheme documents 854.3 Launch procedures and practices 884.4 Running the fund 894.5 Charges 924.6 Termination/winding-up 955 FUND MANAGEMENT 995.1 Investment policies and objectives 1005.2 Investment restrictions 1015.3 Borrowing and gearing 1065.4 Underwriting 1065.5 Stocklending 1076 MARKETING 1096.1 Authorisation 1106.2 Cross-border/international marketing 1106.3 Distribution channels 1127 ADMINISTRATION 1197.1 Investment portfolio 1207.2 Valuation, pricing and dealing 1277.3 Investors/participants 1317.4 Communicating with investors 1378 TAXATION 1438.1 Introduction 1448.2 The fund 1468.3 The investor/participant 150Glossary of industry terms 153Useful contacts 161Index 165