What Is Management Tenure? Management tenure is the length of time that an investment manager has been at the helm of an investment fund. A long-term fund performance record, preferably of five to 10 years, is thought to be a key indicator of a fund manager’s investing ability and the fund’s future success. Key Takeaways
What Is a Management Audit? A management audit is an analysis and assessment of the competencies and capabilities of a company’s management in carrying out corporate objectives. The purpose of a management audit is not to appraise individual executive performance but to evaluate the management team in its effectiveness to work in the interests of
What Is Management by Objectives (MBO)? Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among
What Is a Management Fee? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting stocks and managing the portfolio. It can also include other items such as investor relations (IR) expenses and the administration
What Is a Management Investment Company? A management investment company is a type of investment company that manages publicly issued fund shares. Management investment companies can manage both open-end funds and closed-end funds. Understanding Management Investment Companies A management investment company manages capital for clients through pooled funds. U.S. investment market legislation has classified investment companies
What Is Management Risk? Management risk is the risk—financial, ethical, or otherwise—associated with ineffective, destructive, or underperforming management. Management risk can be a factor for investors holding stock in a company. Management risk can also refer to the risks associated with the management of an investment fund. Understanding Management Risk Management risk refers to the
What Is Managerial Accounting? Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization’s goals. Managerial accounting differs from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions. Key Takeaways
What Is a Manager Universe (Benchmark)? A manager universe (benchmark) refers to a peer group of investment managers who have the same investment style. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers. Key Takeaways
What Is a Mandatory Mortgage Lock? A mandatory mortgage lock is the sale of a mortgage in the secondary mortgage market with terms that require the seller of the mortgage to make the delivery to the buyer by a certain date or incur a pair-off fee. The requirement to make delivery of the mortgage or incur a pair-off fee
What Is M2? M2 is the U.S. Federal Reserve’s estimate of the total money supply including all of the cash people have on hand plus all of the money deposited in checking accounts, savings accounts, and other short-term saving vehicles such as certificates of deposit (CDs). Retirement account balances and time deposits above $100,000 are
