043092Li Wai Lun, Allen

1
Investment Industry

• 043092 Li Wai Lun, Allen
• 043096 Chan Ka Hang, Keita
• 043140 Chan Wai Lun, Alan
• 043143 Lo Ka Wing, Julian
• 043174 Lau King Wah, Tyrone

2
Agenda

• Introduction Investment Industry
• Products, Regulations, Fund Industry
• Franklin Templeton
• Case study
• Conclusion

3
Investment Industry

• Products
• Close-end products
• Open-end products
• Index products
• Illiquid assets
• Liquid assets
• Offshore products

4
Regulations

• Security Futures Commission (SFC)
• Hong Kong Investment Fund Association (HKIFA)
• Professional Insurance Broker Association (PIBA)

5
Legislation and Regulation from SFC
6
Code of ethics from HKIFA
7
Internal control measures
Internal control measures Proportion of respondents having the internal control measure
Requirement to disclose possible conflicts of interest 100
Procedure for analysts being brought over the Chinese Wall 97
Segregation of duties 93
Restrictions on personal trading by analysts 93
Blackout periods for trading by analysts 80
others 37
Source SFC, Securities Firm Survey on Investment
Research Activities Hong Kong November 2003
8
Target of medium to large size firm
Source SFC, Securities Firm Survey on Investment
Research Activities Hong Kong November 2003
9
Target in smaller firms
Source SFC, Securities Firm Survey on Investment
Research Activities Hong Kong November 2003
10
Fund Industry

• History
• 1822 Holland King of William I
• 1868 England, London, Investment trust on
  securities company
• 1924 Massachusetts company, Investment Trust Fund
• 1940 US legislated Company Law

Resource
11
Characteristics of Fund

• Small resources pooled together can accomplish
  big things
• Risk diversification
• Expertised management
• High liquidity

Resource
12
Comparison of different investments