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    Unit 21: Asset Management: Lead in (P97)

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    Minh Châu Tạ Thị
    1) The document discusses different asset management strategies including funding, maintenance, operations, growth investment, value investment, and choosing between large and small companies. 2) It also discusses active versus passive management strategies and whether markets can be beaten by individual stock pickers. 3) The reading discusses why many investors are unhappy with active managers due to high fees and lack of performance relative to passive index funds.

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    Unit 21: Asset Management: Lead in (P97)

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    Minh Châu Tạ Thị
    32 views3 pages
    1) The document discusses different asset management strategies including funding, maintenance, operations, growth investment, value investment, and choosing between large and small companies. 2) It also discusses active versus passive management strategies and whether markets can be beaten by individual stock pickers. 3) The reading discusses why many investors are unhappy with active managers due to high fees and lack of performance relative to passive index funds.

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    UNIT 21

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    1) The document discusses different asset management strategies including funding, maintenance, operations, growth investment, value investment, and choosing between large and small companies. 2) It also discusses active versus passive management strategies and whether markets can be beaten by individual stock pickers. 3) The reading discusses why many investors are unhappy with active managers due to high fees and lack of performance relative to passive index funds.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    32 views3 pages

    Unit 21: Asset Management: Lead in (P97)

    Uploaded by

    Minh Châu Tạ Thị
    1) The document discusses different asset management strategies including funding, maintenance, operations, growth investment, value investment, and choosing between large and small companies. 2) It also discusses active versus passive management strategies and whether markets can be beaten by individual stock pickers. 3) The reading discusses why many investors are unhappy with active managers due to high fees and lack of performance relative to passive index funds.

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    © All Rights Reserved
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    of 3

    UNIT 21: ASSET MANAGEMENT

    LEAD IN (P97)
     If you had a large amount of money to invest, would you invest it yourself, or to get a
    professional investment consultant to do it?
    I would invest it on my own because I would have knowledge about the field I would
    invest and I would want to challenge myself
     Would you like to invest and manage other people’s money?
    No, I would not
     What are the different basic strategies of asset management?
    I think the different basic strategies of asset management are funding, maintenance and
    operations

    LISTENING 1 (P97)
    1. Paula Foley does not mention derivatives, interest and liabilities.
    2.
    1 b
    2 c
    3 f
    4 e
    5 g
    6 a
    7 d

    LISTENING 2 (P98)
    1. She mentions 3 styles: growth investment, value investment and the choice of large or
    small companies
    2. Growth investment means looking for growth or capital accumulation: companies that
    will get bigger.
    Value investment is investing in big, stable companies in conservative industries with
    earnings that might grow slowly but won’t fall.
    Large companies are generally stable and more reliable than small ones.
    Small companies often grow more quickly than large ones, but are more difficult to get
    information about.
    Active management means you buy and sell quite frequently, adapting your portfolio to
    your objectives and changing market conditions.
    Passive investment means you don’t buy and sell frequently; you buy and hold until
    bonds mature or the financial situations fundamentally changes.
    Index-linked portfolios try to follow or copy the movements of stock or bind market
    indices or indexes.
    Even fund portfolios need to be managed as their managers can change, or their quality
    and objectives can change.
    3. Asset values
    Capital accumulation
    Conservative industries
    Growth investment
    Growth industries
    Investment management
    Stable earnings

    READING (P99)
    1. People are getting angry with active money managers because they are not performing
    better than passive managers, who simply invest in indexed funds
    2. Indexed funds developed because people argued that it was impossible to consistently
    do better than the markets
    3. The efficient-market hypothesis is that a company’s share price always accurately
    reflects all available useful information. Further analysis will not reveal any additional
    information, so there is no way of knowing more than the rest of the market participants
    4. George Soros argues that markets often over-or-undervalue things, and that high and
    low share prices can make things happen which in turn have an effect on price
    5. Peter Lynch found good companies that the market was undervaluing
    6. Because most active managers do worse than the market average, and unlike passive
    managers they also charge fees.

    LANGUAGE FOCUS (P100)


    1D
    2A
    3F
    4C
    5B
    6E

    WRITING (P100)
    The Wealth Management Director March 3,2020
    MGS Bank
    23 Ladbroke Avenue
    London W11 3PX

    Dear Sir
    I am writing to complain about the person who is directly responsible to my account, Mr Cullen.
    As an investment advisor, he seems to know little about asset management, and he disregards
    of everything I say to him. I would have thought his role would be listen to my request.
    I have a lifetime of experience in finance, and could easily transfer my account to another bank
    or even to another investment fund. Furthermore, I could easily trade stocks and currency online
    without paying commissions to a bank.
    Your advisor, Mr Cullen, does not seem to be competent to select stock and currency options
    and commodity futures despite I precisely tell him what I want to do with my money. Therefore, I
    would like someone more senior to take over responsibility for my account.
    I am looking forward to hearing from you
    Yours faithfully
    CHAU
    Ta Thi Minh Chau

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