Cover

Contents

Acknowledgements

Introduction

About the authors

01 Financial markets

Introduction

Defining financial markets

History and developments of financial markets

Financial markets today

Categorization of markets

The key participants in a financial market

Cross-border transactions

Recent developments in financial markets

Financial crises

Summary

Check your understanding

Further reading

02 Global investment management industry

Introduction

Global issues shaping investing in 2017

The size of the UK investment management industry

Fund valuation

Measurement of AUM in the UK

Asset management house structure

Investment managers

Future developments in the fund management industry

Summary

Check your understanding

Further reading

03 Main market participants

Introduction

Central banks

Wholesale banking

Retail banking

Private banks

Investment banks

Private equity

Sovereign wealth funds

Hedge funds

Pension funds and insurance companies

Private investors

Summary

Check your understanding

Further reading

04 Risk

Introduction

Types of risk

Measuring risk

Summary

Check your understanding

Further reading

05 Investment theory

Introduction

Random walk theory

Efficient market hypothesis

Modern portfolio theory

Measurement of performance under modern portfolio theory

Capital asset pricing model

Arbitrage pricing theory

Behavioural finance

Investment returns

Summary

Check your understanding

Further reading

06 Investment classes: Fixed-interest (debt)

Introduction

Bond issuers and bond types

Nominal or par value of a bond

Types of coupon or interest rates payable on a bond

When will the coupon or interest be paid?

Maturity or other repayment of a bond

Identifying a bond

Where can investors buy bonds?

Bond ownership

Costs of buying a bond

Factors affecting bond prices

Understanding risk in bonds and its effect on bond prices

Measuring the return on a bond

The risks of investing in bonds

Bond taxation

The advantages and disadvantages of investing in bonds

Summary

Check your understanding

Further reading

07 Investment classes: Equity

Introduction

Types of shares

Nominal and market values of shares

Changes in the number of issued shares

Stock exchanges

Trading shares

The effect of corporate actions on the costs of buying and selling shares

Possible returns from holding shares as an investment

Measuring returns from shares

Risks of investing in shares

Factors affecting the price of shares

Advantages and disadvantages of equity investment

Are private equity and equity the same?

Summary

Check your understanding

Further reading

08 Investment classes: Collective investments

Introduction

Advantages

Disadvantages

Different types of collective

Summary

Check your understanding

Further reading

09 Investment classes: Derivatives

Introduction

Derivative uses for investors

Types of derivative

Determining the option premium

Methods of ending a derivative contract

Trading derivatives

Summary

Check your understanding

Further reading

10 Investment classes: Alternative investments

Introduction

General risks of investing in alternative assets

Collectibles and chattels

Commodities

Gold

Crowdfunding

Property

Collective funds

Structured products

Summary

Check your understanding

Further reading

11 Portfolio management: The adviser and the client

Introduction

Client relationship

The advisory and planning process

Investment strategies

Client review process

Summary

Check your understanding

Further reading

12 Portfolio management: Utilization of retail fund management products

Introduction

Identification and setting of portfolio objectives

Implementation of appropriate investment strategy

Summary

Check your understanding

Further reading

13 Taxation

Introduction

Residency and domicile

Withholding tax

Income taxation

Trusts

National insurance (NI)

Investment income or unearned income tax

Capital gains tax (CGT)

Inheritance tax (IHT)

Stamp duty

Value added tax (VAT)

Corporation tax

Summary

Check your understanding

Further reading

14 Financial regulation and supervision

Introduction

The reasons for regulation: the importance of financial stability

Regulatory landscape in the United Kingdom

Regulatory landscape in the European Union

Regulatory landscape in the United States of America

Regulatory landscape in Hong Kong

Regulatory landscape in China

Regulatory landscape in Singapore

Regulation and supervision style

Anti-money-laundering and prevention of financial crime

Complaints and dispute resolution

Summary

Check your understanding

Further reading

Glossary

References

Index