Summary |
This book deals predominantly with the investment activities of long-term investment funds such as life assurance companies and pension funds and the authors’ day-by-day pre-occupation with these institutions will be evident throughout. The emphasis is on what is termed fundamental analysis, although reference to chart or technical analysis and modern portfolio theory (MPT) is made. As long-term funds life assurance companies and pension funds require long-term performance. This can be only a succession of short-term performances. The changing product mix of the institutions and increasing competition within the savings market has led over the last decade or so to increasing emphasis on short-term performance. In some ways the forces of competition and increasing demands for short-term published performance figures make the task of providing risk capital in the longer term extremely difficult. The dangers of concentrating on short-term performance cannot be over-estimated.
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