This seminar provides an introduction to the investment management industry-the development and distribution of investment advisory services and financial investment products to investors and retirement plans. Although the growth and development of the U.S. capital markets in the preceding 25 years has been remarkable, the increase in the size and significance of the investment management industry has been even more dramatic. While during the period from 1980 to 2005 the Dow Jones Industrial Average increased by an unprecedented rate of nearly 13-fold, during the same 25-year period the investment management industry increased by over 90-fold, with estimates of discretionary assets under management in the industry exceeding $13 trillion. This growth in the size of the industry is coupled with an increase in the breadth and complexity of the investment products offered, involving a broad array of disciplines with which legal advisers and industry participants need to have a basic familiarity. This seminar examines the basic regulatory framework-primarily the federal Investment Company Act and Investment Advisers Act-by analyzing selected issues involving the structure, management, marketing, and distribution aspects of mutual funds and other investment products. Other topics will be highlighted through analysis of the development of new investment products, such as ETFs and publicly offered hedge funds and private equity funds. This seminar will provide an introductory level analysis of certain core areas of the investment management industry, including portfolio management philosophies; basic characteristics of equity, fixed income, and alternative asset classes; the role of fund directors, conflicts of interest, and corporate governance issues; and distribution and marketing-related issues, including the impact of the Internet on financial product design and distribution. A student's grade will be based on a final examination. Active class participation is encouraged and may be a factor in the final grade. Harris students, in addition to taking the final exam, must write a 10- to 12-page paper.
