Question

Discuss one current event relative to investment management.

Answer 1

Investment management is the professional asset management of various securities (shares, bonds and other securities) and other assets in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).

The term asset management is often used to refer to the investment management of collective investments, while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management often within the context of so-called "private banking".

The provision of investment management services includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff. It remains unclear if professional investment managers can reliably enhance risk adjusted returns by an amount that exceeds fees and expenses of investment management.

The term fund manager (or investment advisor in the United States) refers to both a firm that provides investment management services and an individual who directs fund management decisions.

The Current event Relative to Investment management is that CNBC's Jim Cramer has been known to argue the market is seeing a shortage of shares. Quite frankly, this is the most brilliant comment concerning the equity markets anyone has made in at least five years.His outlook on this issue highlights a broad theme in the markets these days: The supply and demand for shares of stock are off-balance. This will likely have broad implications for the market and banks, particularly, this year.

I strongly believe that 2018 will be a year when there is an explosion in new stock offerings, through either initial or secondary offerings. This will be a year when some unicorns go public. It will be a year when some companies swap their relatively high cost debt for low cost equity.

This will be a bonanza for investment bankers. This is because investment banking revenues will surge on the offerings, and the increase in investment banking will feed other businesses operated by those firms. Increased investment banking, furthermore, stimulates more loans, more trading, more customer activity and more asset gathering overall.Investors should be aggressively buying stocks like Goldman Sachs and Morgan Stanley to capitalize, as the imbalance between demand for shares and the supply of these units is addressed by the market.

Investment managers also require new skills to stand out amongst the competition. Mergers and acquisitions (M&As) often provide the ability to acquire these new skills and capabilities quickly.So This is the Current event relatied to the investment management.