11 Pages Posted: 16 Dec 2012
Date Written: December 14, 2012
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: 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