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INTRODUCTION
A bad book is as much of a labor to write as a good one, it comes as sincerely from the author’s soul. Aldous Huxley
Delineating a precise and clear picture of the asset management industry is not easy, as many of the operational boundaries regarding individual business areas and in- dustry players overlap due to the ongoing process of evolution and growth of the field. This book is organised into six main chapters and divided into three macro ar- eas for intellectual and academic rigour. The main characteristics of management companies, actively managed investment funds, and passively managed products will be analysed to provide a comprehensive overview of the asset management in- dustry. Various statistics will also be provided to support the discussion to give more colour to specific aspects and offer a better idea of the size and characteristics of the market.
The first chapter serves as a general introduction and will provide a broad overview of the asset management sector, highlighting several critical issues of particular in- terest. After briefly reviewing the history and emphasising the leading authorities at the European level, a preliminary examination of the macro composition of the asset management sector will be conducted, dividing by compartments for the primary in- vestment products, investors, and managers. Secondly, asset management’s vital role in the economy will be analysed together with the relatively recent impact of ESG regulations on the manner in which business is carried out. Thirdly, the future traits of the industry will be emphasised, particularly looking at the impact that tech- nology is having and will bring about a fundamental and radical change in the indus- try.
In the second chapter, we delve into the analysis of the first major topic of the book: management companies. The main characteristics of management companies, dedi- cated to traditional UCITS and alternative funds, will be analysed, focusing on reg- ulatory aspects such as authorisation, operational requirements, delegation, and re- muneration systems. In addition, more business-related topics will be touched upon, such as the primary business models and structures’ organisational features, high- lighting the vital role played by third-party management companies, especially in the current context, and the activism within the asset management industry.
The third, fourth, and fifth chapters deal with the second macro topic: actively man- aged investment funds. Specifically, traditional UCITS funds are covered in the
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