Role of Analysts, Investment Managers, and Investment Committee


In the activity of management of unit trusts by investment managers, usually they are aided by analysts. In addition, there is also investment committee whose names can we see in the mutual fund prospectus. What is their role in the management of the investments of mutual fund?

In general, the investment manager Division consists of two main divisions, namely the Division of analysts and investment managers. The tasks of the divisions of analysts is setting up data related to the development of the global economy, national economy, development of the company's performance, the data of stocks, bonds, and all other data necessary for investment decision making.

In the capital market, analysts at investment manager division are known as the "buy side analysts". That is, they collect data to be used as a guideline for the "client", the investment managers for decision making. The orientation of the resulting research is how to be able to generate mutual funds perform better than the market.

The opposite of a buy side analyst is a sell side analyst. Their duties are the same, but the "client" they are customer securities firm so that the orientation of his research was how to let investors more often Transact resulting transaction costs for the company. Therefore, the resulting analyses usually are short term. Of course, even though the transaction-oriented, their analysis results must also be precisely. If not, it certainly will not be trusted.

Due to the orientation of the buy side analyst is too internally, it is usually the result of research they are closed because the reserved only for investment managers and the marketing agency in order to provide education about the condition of the market.

Therefore, if we read the news, usually financial analysts interviewed are a sell side analyst. Because of their orientation to the customer directly. And the more frequently appears in the media, more or less will provide positive value due to increasing the credibility of either the analysts or the company's place of work.

The task of the Division is to manage investment managers of mutual funds. Based on the data and information collected by the Research Division, they took decisions regarding the management of mutual funds ranging from asset allocation, selection of sectors to actively buy and sell transactions for profit.

Not infrequently, an investment manager at the Division personnel was once an analyst. But some are more excited than the analyst remains the investment manager.

In decision making, investment managers get feedback from various sources. Starting from the buy side, sell side analyst, analyst, external research, and information from the management of the company that became the goal of his investment. In management, investment managers are also periodically hold meetings with members of the Investment Committee.

The Investment Committee is a team that is in charge of directing and overseeing a team of Investment Managers in running the day-to-day policy and investment strategy. Usually this Committee consists of the Board of Directors, Commissioners, or experts that are deemed competent. On the company's investment manager, foreign investment Committee also often filled by a representative of the Division of Investment from abroad.

The role of the Investment Committee can be different in every company. There tend to be more passive because entrust to the team who manages its investments. There is also a more active up to set a limit on stocks and bonds what may be invested and which are not based on the company's investment philosophy.

Although there is investment Committee, the final decision remains in the hands of investment managers and Investment Committee could not directly fund management operations. In accordance with the regulations, an investment manager is obligated to document the results of research and meetings related to basis of decision-making.

The subsequent documentation is also one of the annual audit objects. In principle, the management of the portfolio by the investment manager must have a base that can be accountable. One of them is through the documentation.

Actually the role of analysts, investment managers and investment committee is how to fund the community entrusted owned through mutual funds are professionally managed, can have a strong analytical base and did not violate ethics rules and corridors.

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