Mutual Funds, Hedge Funds, and Long-Term Capital：共同基金，对冲基金，长期资本.ppt

Shareholders Unite The most natural solution to the “agency problem’’ is that there be one large shareholder - or an entity that consolidates disparate shareholders’ control rights. Pension funds and investment companies represent such an entity. Governance The role of institutions in influencing managerial behavior is examined under the rubric of corporate governance. To date pressure exerted by external large shareholders (TIAA/CREF; CALPERS), has not been as important as the “takeover market” in disciplining management. Disintermediation The Economist article (11-6-99) shows that since 1970, mutual funds’ share of total US financial assets has risen from 0 to 20%. While bank deposits fell from 40 to 21%, and pension funds increased from 10 to 30%. Mutual Funds A mutual fund is a form of investment company. It is distinguished from a closed-end investment company in that its size changes as new money comes in to the fund, or holders withdraw money from the fund. Mutual Funds 2 Why would an investor choose a fund rather than direct investment? Pros: Professional Management Reduced Transactions Costs Solution to Agency Problems Enhanced Diversification Cons: Subordination of individual interests to the fund. (Examples of this include tax-timing, and timing of liquidity costs.) Mutual Funds3 The relative importance of the costs and benefits can be estimated by the popularity of different types of funds. Question: What does the growing popularity of low-cost index funds say about the relative importance of possible benefits to mutual funds? Pension Plans The Economist article shows that since 1975, in the US, the number of participants in defined contribution pension plans has risen from under 10 million to around 50 million, while the number of participants in defined benefit plans has remained around 40 million. It identifies 401(k) plans as retail and defined benefits as wholesale funds. Insurance One of the oldest and most important intermediary is insurance