Collective Investment Vehicles and Other Asset Management Products

This chapter looks at the economic, technical, and regulatory issues of asset management products, with particular attention paid to collective investment vehicles. Investment fund classification and the alternative legal structures (common funds, open-end investment companies, unit trusts) for conducting collective portfolio management are examined. Management strategies and the choice between active management and indexed management are also investigated. Restrictions to investment policies, public documentation, and charges of investment funds are explored, assuming the perspective of European Union investors. The final part of the chapter examines other types of asset management products, like individual portfolio management, investment-oriented insurance policies, and structured products, which have a high rate of substitutability with investment funds and represent their natural competitors.