NOMBRE: Leonardo Mauricio Mendez Eslava
CARRERA: ADMINISTRACION DE EMPRESAS
FECHA DE ENTREGA: 9-MARZO-2010
NOMBRE DEL TRABAJO: INVESTMENT COMPANIES
WHAT ARE THE INVESTMENT COMPANIES?
Investment companies are institutions that are aimed at the acquisition and sale of assets to the Investment proceeds from the placement of the shares of its capital frompublic investors and the contracting of services and performance of Other activities planned in the Investment Company Act (ISA).
For assets to be understood Investment Purpose: Values, titles and documents to which the scheme will be applicable to the Securities Market Act entered in the National Register or listed in the International System of Quotations, other securities, cash resources ,property, rights and credits, as documented in contracts and instruments, including those relating to financial transactions known as derivatives and other traded goods that according to the investment regime under the ISA and the general provisions for that purpose issued by the NBSC for each type of investment company are likely to be an integral part of their heritage.
The possibility that asmall investor to structure a portfolio customized to address their particular investment needs, is low to the extent that resources earmarked for this purpose are insufficient to meet the requirements of brokerage firms for opening new accounts, or to acquire securities in the amounts and proportions necessary to form this portfolio. Additionally, the small investor, usually lack the knowledge and/ or time to build a properly diversified portfolio, or to continuously monitor market behavior, so that could detect the best investment opportunities.
Investment companies are formed as a result, a viable option for a number of small investors who want to diversify their investments through the acquisition of a portfolio, whose mix is most appropriate for their needs for liquidity, their returnexpectations and degree of risk aversion, regardless of amount invested.
The legal structure of investment companies incorporated for the first time in Mexico in the Act establishing the Regime of the Investment Funds December 1950, which was succeeded by the Investment Company Act, enacted in December 1954 , of ephemeral existence since it was abrogated by the Investment Company Actof December 1955. Later that law was repealed in 1985 and reformed again in 1986, 1989, 1992, 1993 and 1995. In June 2001, was published in the Official Gazette a new Mutual Funds Act, it came into force on 5 December of that year.
With the issuance of the new Mutual Funds Act (ISA) has sought to modernize the legal framework of these institutions, to encourage their development, capitalformation revitalize and expand savings options, all in keeping with the development markets have experienced.
Authorization and Types of Mutual Funds
Today, the organization and operation of investment companies, requires the prior approval of the National Banking and Securities Commission (NBSC), who maintains the discretion to grant or deny.
The authorizations can not be transferred to any person andrefer to the following types of companies:
1.-Investment companies of equity appear first in the country, whose operations are done with assets and documents of equity and debt;
2.-Investment companies in debt instruments (formerly known as bonds), which operate exclusively in securities and debt documents
3.-The capital investment companies, which operate with securities and documents issued bycompanies that require long-term resources and whose activities are mainly related to the objectives of National Development Planning;
4.-Investment companies operate exclusively limited objectives with investment assets to be defining in its charter and public information leaflets investor.
The obligation to organize as corporations applies to all four types of societies.