Investment Management and the Investment Chain

2017 ◽  
Author(s):  
Diane-Laure Arjaliès ◽  
Philip Grant ◽  
Iain Hardie ◽  
Donald MacKenzie ◽  
Ekaterina Svetlova
Keyword(s):  
Decision Making ◽  
Asset Management ◽  
Investment Decisions ◽  
Investment Management ◽  
Money Flows ◽  
Central Argument ◽  
A Chain ◽  
Asset Managers

Chapter 1 introduces the idea of the chain as related to investment management. It highlights the increasing importance and influence of the asset management industry and argues that, despite this fact, the behaviour and decision-making of asset managers has been little studied. The chapter suggests that investment decisions today cannot be understood by focusing on isolated investors. Rather, most of their money flows through a chain: a sequence of intermediaries that ‘sit between’ savers and companies/governments. The chapter introduces the central argument of the book that investment management is shaped profoundly by the opportunities and constraints that this chain creates.

Chains of Finance

2017 ◽  
Author(s):  
Diane-Laure Arjaliès ◽  
Philip Grant ◽  
Iain Hardie ◽  
Donald MacKenzie ◽  
Ekaterina Svetlova
Keyword(s):  
Financial Markets ◽  
Investment Decisions ◽  
Investment Management ◽  
Social Scientists ◽  
Economic Output ◽  
Extended Sequence ◽  
Money Flows ◽  
Decision Making Processes ◽  
Central Argument ◽  
A Chain

Investment is no longer a matter of individual savers directly choosing which shares or bonds to buy. Rather, most of their money flows through a ‘chain’: an often extended sequence of intermediaries. What goes on in that chain is of huge importance: the world’s investment managers, who are now almost as well paid as top bankers, control assets equivalent in value to around a year of total global economic output. In Chains of Finance, five social scientists (four of whom have worked in investment management) discuss the ways in which the intermediaries in the chain influence each other, channel the flows of savers’ money, enhance investment decisions, and form audiences for each other’s performances of financially competent selves. The central argument of the book is that investment management is fashioned profoundly by the opportunities and constraints this chain creates. Whether chains constrain or enable, however, they always entangle, tying intermediaries to each other—silently and profoundly shaping the investment management industry. Chains of Finance is a novel analysis that will make students, social scientists, financial professionals and regulators look at the workings of financial markets in a new light. A must-read for anyone looking for insights into the decision-making processes of investment managers and those influenced by and working for them.

Fires, floods and financial meltdowns: black swan events and property asset management

2014 ◽  
Vol 32 (3) ◽  
pp. 241-255 ◽  
Author(s):  
David M. Higgins
Keyword(s):  
Decision Making ◽  
Extreme Events ◽  
Asset Management ◽  
Decision Making Process ◽  
Black Swan ◽  
Management Tools ◽  
Content Type ◽  
Starting Point ◽  
Known Unknowns ◽  
Asset Managers

Purpose – In these ever challenging times, conventional property decision theory appears inadequate to deal with black swan events: those unforseen, rare and extreme natural and man-made disasters. The paper aims to discuss these issues. Design/methodology/approach – This research maps, characterises and assesses these threats into: Known Knowns, Known Unknowns and Unknown Unknowns categories. Whereas, Known Knowns events can be managed and Unknown Unknowns events are difficult to even identify, those black swan Known Unknowns events that impact on a location, can be modelled based on available past and comparable evidence. Findings – As a starting point, black swan management tools can utilise available prediction-based scale indices to highlight the possibility of these extreme events occurring in locations, and so form an important consideration for property asset managers in their decision-making process. Originality/value – For property asset managers, this black swan management research attempts to identify, record and include those outlier events that directly impact on their property decision-making process. This can be undertaken by providing predictions as to the future occurrence of Known Unknown black swan events. These extreme events need to form an important part of a property asset manager's decision-making process. If overlooked, black swan events can have disastrous consequences for the valued client – building owner.

DECISION-MAKING ON INVESTMENT OF IT-INNOVATION BASED ON FUZZY EXPERT INFORMATION

2018 ◽  
pp. 103-111
Author(s):  
Olga Olegovna Eremenko ◽  
Lyubov Borisovna Aminul ◽  
Elena Vitalievna Chertina
Keyword(s):  
Decision Making ◽  
Individual Characteristics ◽  
Production Model ◽  
Investment Management ◽  
It Projects ◽  
Product Model ◽  
Project Cost ◽  
Reasoning System ◽  
Managerial Decisions ◽  
The Individual

The subject of the research is the process of making managerial decisions for innovative IT projects investing. The paper focuses on the new approach to decision making on investing innovative IT projects using expert survey in a fuzzy reasoning system. As input information, expert estimates of projects have been aggregated into six indicators having a linguistic description of the individual characteristics of the project type "high", "medium", and "low". The task of decision making investing has been formalized and the term-set of the output variable Des has been defined: to invest 50-75% of the project cost; to invest 20-50% of the project cost; to invest 10-20% of the project cost; to send the project for revision; to turn down investing project. The fuzzy product model of making investment management decisions has been developed; it adequately describes the process of investment management. The expediency of using constructed production model on a practical example is shown.

Vallejo Sanitation and Flood Control District – Using Asset Management for Better Infrastructure Decision Making

2016 ◽  
Vol 2016 (9) ◽  
pp. 3725-3747
Author(s):  
Johnson Ho ◽  
Mark Tomko ◽  
Gage Muckleroy ◽  
Roop Lutchman ◽  
Mert Muftugil
Keyword(s):  
Decision Making ◽  
Asset Management ◽  
Flood Control

Asset Allocation Strategies and Commodities

2018 ◽  
Author(s):  
Claudio Boido
Keyword(s):  
Asset Allocation ◽  
Asset Management ◽  
Central Banking ◽  
Fixed Income ◽  
Fixed Income Securities ◽  
Asset Classes ◽  
Alternative Beta ◽  
Asset Managers ◽  
Selection Of ◽  
Allocation Strategies

As a result of the financial crisis of 2007–2008 and subsequent central banking decisions, the asset management industry changed its asset allocation choices. Asset managers are focusing their attention on the search for new asset classes by taking advantage of the new opportunities to capture risk premia with the aim of exceeding the returns given by traditional investments, including traded equities, fixed income securities, and cash. By doing so, they are trying to improve the selection of alternative assets, such as commodities that sometimes have relatively low correlations with traditional assets. The chapter begins by describing the principles of asset allocation, distinguishing between passive and active asset allocation, also focusing on beta and alternative beta. It then concentrates on how investors can gain exposure to commodities through different investment vehicles and strategies.

Making investment decisions in stock markets using a forecasting-Markowitz based decision-making approaches

2019 ◽  
Vol 15 (2) ◽  
pp. 647-659 ◽  
Author(s):  
Zahra Moeini Najafabadi ◽  
Mehdi Bijari ◽  
Mehdi Khashei
Keyword(s):  
Decision Making ◽  
Time Series ◽  
Stock Markets ◽  
Time Series Prediction ◽  
Investment Decisions ◽  
Rate Of Return ◽  
Expected Returns ◽  
Prediction Methods ◽  
Content Type ◽  
Markowitz Model

Purpose This study aims to make investment decisions in stock markets using forecasting-Markowitz based decision-making approaches. Design/methodology/approach The authors’ approach offers the use of time series prediction methods including autoregressive, autoregressive moving average and artificial neural network, rather than calculating the expected rate of return based on distribution. Findings The results show that using time series prediction methods has a significant effect on improving investment decisions and the performance of the investments. Originality/value In this study, in contrast to previous studies, the alteration in the Markowitz model started with the investment expected rate of return. For this purpose, instead of considering the distribution of returns and determining the expected returns, time series prediction methods were used to calculate the future return of each asset. Then, the results of different time series methods replaced the expected returns in the Markowitz model. Finally, the overall performance of the method, as well as the performance of each of the prediction methods used, was examined in relation to nine stock market indices.

scholarly journals Sustainable Investments in Responsible SMEs: That’s What’s Distinguish Government VCs from Private VCs

2021 ◽  
Vol 14 (1) ◽  
pp. 25
Author(s):  
Jeaneth Johansson ◽  
Malin Malmström ◽  
Joakim Wincent
Keyword(s):  
Decision Making ◽  
Investment Decisions ◽  
Societal Impact ◽  
Venture Capitalists ◽  
Decision Making Processes ◽  
Micro Level ◽  
Sustainable Investments ◽  
Private Venture ◽  
The Impact ◽  
Level Performance

Researchers question the impact of governmental venture capitalists (GVC) compared to private venture capitalists (PVC), but we know little about why this difference occurs and if this criticism is justified. We observed a group of GVCs and developed a new model that describes the way that GVCs process signals pre- and post-decisions. Certain macro level factors severely undermine micro level performance, causing GVCs to financially underperform with respect to PVCs. This helped us to understand that GVCs do not make investment decisions in the same way as PVCs, and what undermines the performance of GVCs’ decision-making processes. The main goals of GVCs are to promote investments in responsible SMEs, mobilizing societal impact. We discuss that the criticism of GVC needs to be more nuanced, as they have a different role than PVC in the financial system as providers of sustainable investments in responsible SMEs.

scholarly journals Distributing ethics: Filtering images of death at three news photo desks

Journalism ◽  
2021 ◽  
pp. 146488492199630
Author(s):  
Jenni Mäenpää
Keyword(s):  
Decision Making ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Self Regulation ◽  
Ethical Reasoning ◽  
Global Market ◽  
Journalism Ethics ◽  
News Magazine ◽  
A Chain ◽  
Visual Coverage

This article explores the practices of selecting news images that depict death at a global picture agency, national picture agency and a news magazine. The study is based on ethnographic observations and interviews ( N = 30) from three Western-based news organisations, each representing a link in the complex international news-image circulation process. Further, the organisations form an example of a chain of filters through which most of the news images produced for the global market have to pass before publication. These filters are scrutinised by the empirical case studies that examine the professionals’ ethical reasoning regarding images of violence and death. This research contributes to an understanding of the differences and similarities between media organisations as filters and sheds light on their role in shaping visual coverage. This study concludes that photojournalism professionals’ ethical decision-making is discursively constructed around three frames: (1) shared ethics, (2) relative ethics and (3) distributed ethics. All the organisations share certain similar conceptions of journalism ethics at the level of ideals. On the level of workplace practices and routines, a mixture of practical preconditions, journalism’s self-regulation, business logic and national legislation lead to differences in the image selection practices. It is argued that the ethical decision-making is distributed between – and sometimes even outsourced to – colleagues working in different parts of the filtering chain. Finally, this study suggests that dead or suffering bodies are often invisible in the images of the studied media organisations.

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