Principles and Policies for In-House Asset Management

11 Pages Posted: 16 Dec 2012  

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment

Ashby H. B. Monk

Stanford University - Global Projects Center

Date Written: December 14, 2012

Abstract

Spurred on by the recent financial crises, a growing number of institutional investors are working to bypass traditional financial intermediaries, agents and centers through the development of in-house teams of investment professionals. As such, the institutional investment community, which is often characterized by broadly diversified and outsourced organizations, is becoming much more involved in the day-to-day asset management of their portfolios. Research shows that this new path offers a variety of important benefits, including higher net-of-fee returns. And yet, there remain significant pitfalls as well. In this paper, we outline the challenges facing would-be 'in-sourcers' and offer a series of principles and policies for effective in-house asset management. Drawing on 20 case studies, we conclude that successful in-house asset management is a function of the people, processes, systems and overall resources at the disposal of management.

Keywords: Institutional Investment, Asset Management, Finance, In-Sourcing

Suggested Citation

Clark, Gordon L. and Monk, Ashby H. B., Principles and Policies for In-House Asset Management (December 14, 2012). Available at SSRN: https://ssrn.com/abstract=2189650 or http://dx.doi.org/10.2139/ssrn.2189650

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment ( email )

South Parks Road
Oxford, OX1 3QY
United Kingdom
+44 1865 285197 (Phone)
+44 1865 285073 (Fax)

HOME PAGE: http://www.geog.ox.ac.uk/staff/glclark.html

Ashby H. B. Monk (Contact Author)

Stanford University - Global Projects Center ( email )

United States

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