Fund manager A fund manager is responsible for implementing a fund's investing strategy and managing its

portfolio trading activities. A fund can be managed by one person, by two people as co-managers, or by a team
of three or more people. Fund managers are paid a fee for their work, which is a percentage of the fund's
average assets under management (AUM).
To qualify for a position in fund management (mutual funds, pension funds, trust fund or hedge funds),
individuals must have a high level of educational and professional credentials and appropriate investment
managerial experience. Investors should look for long-term, consistent fund performance with a fund manager
whose tenure with the fund matches its performance time period.
The main benefit of investing in a fund is trusting the investment management decisions to the professionals.
The quality of the fund manager is one of the key factors to consider when analyzing the investment quality of
any fund

Lending Investors A lender is an individual, a public group, a private group or a financial institution that makes funds
available to another with the expectation that the funds will be repaid, in addition to any interest and/or fees, either in
increments (as in a monthly mortrage payment) or as a lump sum. Lenders may provide funds for a variety of reasons,
such as a mortgage, automobile loan or small business loan. The terms of the loan specify how the loan is to be
satisfied, over what period and the consequences of default.

Insurance Companies Insurance companies, by their nature, bear risks. These risks partly depend on insurers ability to
anticipate the frequency and magnitude of the losses that they promise to cover. Because insurers manage portfolios of
assets to pay these obligations, they also bear risks similar to those of other financial intermediaries, risks that depend on
changes in the value of their assets compared to that of their contractual liabilities. Because the capacity of insurance
companies to absorb losses is limited, their customers also bear some risk. In order to limit this risk, a variety of public
agencies examine and regulate insurers. Often contracts also are covered by guaranty funds, which essentially allow the
customers of failing insurance companies to transfer a portion of their unsatisfied claims to the other participating insurers.
But, this safety network can fail if too many insurance companies have assumed similar risks. Recently, some highly
publicized failures of insurers, following the
difficulties of the thrift and banking industries, have drawn attention to the financial condition of the insurance industries.
Because the insurance business differs substantially from that of depository institutions, most of the specific problems of
these industries are not comparable.

Venture Capital Corporations Venture capital is financing that investors provide to startups companies and small
businesses that are believed to have long-term growth potential. For startups without access to capital markets, venture
capital is an essential source of money. Risk is typically high for investors, but the downside for the startup is that these
venture capitalist usually get a say in company decisions. Venture capital generally comes from well-off investors,
investment banks and any other financial institutions that pool similar partnerships or investments.
Though providing venture capital can be risky for the investors who put up the funds, the potential for above-
average returns is an attractive payoff. Venture capital does not always take a monetary form; it can be provided
in the form of technical or managerial expertise. For new companies or startup ventures that have a limited
operating history, venture capital funding is increasingly becoming a popular capital raising source, as funding
through loans or other debt instruments is not readily available.

Pawn Shop also called a pawn shop or pawn broker is a shop or businesses who loan money to people who
bring in valuable items which they leave with the pawnbroker. Examples of items that a person may leave are
jewellery, gold, watches, cameras, musical instruments, televisions or computers.
The valuables that people leave are called the "collateral". The person can get their valuable item back from the
pawnbroker if the pay back the money they were loaned and pay interest on the loan. Interest is like a fee for
getting to use someone else's money for a set time period. If the person who has borrowed money from the
pawnbroker does not repay the loan and interest within an agreed-upon time limit, the pawnbroker can sell the
valuable item to another customer to get back the money they loaned.
To prevent thieves from using pawnshops as a way to get money from stolen goods, many communities have
lawsrequiring that people who bring in valuable items to the pawnshop have to show identification, such as a
driver's license.
NEW ERA UNIVERSITY
COLLEGE OF BUSINESS
ADMINISTRATION
BASIC FINANCE

PRIVATE NONBANK
FINANCE
INTERMEDIARIES

Submitted by: Chrystal Reigh Farrol

Enrique C. Pingol
Schedule: TTH 8:00-12:00