|
|
Pages :
1,
|
|
By :
Rahul
student
[ Scorecard : 1206]
|
ON : 5/9/2008 9:36:10 PM
|
| |
TERM OF THE DAY - MAY 09, 2008
|
Manager Of Managers (MOM)
|
What Does it Mean?
A class of financial intermediary that hires professional investment managers to oversee aspects of a client's investment fund. More specifically, the MOM tracks the performance of each investment manager and has the power to fire ineffective managers and then hire replacements on a client's behalf. Using a MOM to handle investments funds is an alternative to hiring a single investment portfolio manager that makes all the asset management decisions.
|
![content divider]()
|
Investopedia Says...
For example, suppose that a teacher's union hires a MOM to invest in its pension fund. The MOM then hires a number of investment managers, such as a bond expert, a money market expert and a large-cap stock expert; each has the responsibility of managing the particular asset class in which he or she specializes. Because no single manager is an expert at investing in all asset classes, using a MOM allows clients to have an expert asset manager working on each aspect of an investment at all times.
|
Related Terms
|
Asset Class
A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.
Asset Management
The management of a client's investments by a financial services company, usually an investment bank.
|
Fund Manager
The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities.
|
Management Tenure
The length of time that a manager(s) has been at the helm of a mutual fund.
|
Pension Fund
A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees.
|
|
|
|
|
