Private Equity for the Individual Investor: Unlocking a Growing OpportunityRajaa Mekouar
Private equity has grown significantly in recent years with assets under management now over $4 trillion globally. This growth has been supported by outperformance relative to public markets and low interest rates. As the industry has grown, family offices and high-net-worth individuals have become important new investors in private equity, with many allocating 10-20% or more of their portfolios. However, access to private equity remains challenging for less wealthy investors due to high minimums and long lockups. New solutions are emerging such as funds of funds and feeder funds to make private equity more accessible.
Fuchs & Associes - LPEA: "Private Equity, the Long Term Investor Journey"Rajaa Mekouar
Initiated by Rajaa Mekouar, of Fuchs & Associés, this event aims to provide a unique insight into Private Equity as a viable investment alternative for private investors. At a time of volatile markets and rising macro uncertainty we are witnessing the dislocation of the traditional allocation model of Fixed Income+ Equities mix. This brings about the advent of a new investment allocation paradigm where investors are pushed to explore new asset classes in the search for yield. In this context, Private Equity is gaining ground as a viable alternative that offers an attractive risk/return profile to the well-advised investor.
Organiser/Moderator: Rajaa Mekouar
Keynote speaker: Ian Prideaux, CIO, Grosvenor Estate
Surprise Guest: Yaron Valler, Partner, Target Global
Panelists:
Stephanie Delperdange, SOFINA
Matthias Ummenhofer, Mojo.Capital
Jerome Wittamer, Expon Capital
Swiss wealth managers are observing increased interest from clients in alternative investment strategies, particularly those available through UCITs funds. This is driven by the current low interest rate environment and uncertainty in traditional markets like bonds and equities. Alternative strategies through UCITs funds offer benefits like transparency, regulation, and liquidity compared to traditional offshore hedge funds. Wealth managers recommend including alternative funds focused on long/short equity, market neutral, and trend following strategies to diversify portfolios and generate higher returns than fixed income with lower volatility than equities.
Real Estate Investing 101: Private EquityPeerRealty
This document discusses various concepts related to real estate private equity funds and syndications. It defines different types of investment funds based on their target risk and return profiles, from core funds with the lowest risk and returns to opportunity funds with the highest risk and potential returns. It also outlines key components of a private placement memorandum, specifies versus blind asset pools, pari passu cost and profit sharing, preferred returns and promotes, catch-up provisions, clawback provisions, squeeze down formulas, and round tripping assets.
Equity-linked debentures (ELDs) are fixed income products that provide both capital protection and participation in stock market returns. ELDs invest a portion of principal in fixed income securities to provide capital protection, and the remainder in stock options to provide equity exposure. This structure aims to offer returns higher than fixed maturity plans but lower risk than direct equity investments. ELDs guarantee return of principal at maturity while offering a return linked to the performance of an underlying stock index over the investment period.
Unlisted real estate funds lecture (1) (1)Lj Wicks
NAV
35
30
25
20
£ (mn)
15
10
5
0
-5
-10
-15
-20
2001
2002
2003
2004
2005
2006
1. Unlisted real estate funds are private investment vehicles that aim to provide direct real estate performance through pooling capital from investors to access a diversified portfolio.
2. Key drivers of risk and return for real estate funds include market risk based on allocations, stock risk based on individual asset performance, fund structure risks related to leverage and fees, and accounting policy risks.
3. Performance analysis of UK institutional funds found that market
Private Equity for the Individual Investor: Unlocking a Growing OpportunityRajaa Mekouar
Private equity has grown significantly in recent years with assets under management now over $4 trillion globally. This growth has been supported by outperformance relative to public markets and low interest rates. As the industry has grown, family offices and high-net-worth individuals have become important new investors in private equity, with many allocating 10-20% or more of their portfolios. However, access to private equity remains challenging for less wealthy investors due to high minimums and long lockups. New solutions are emerging such as funds of funds and feeder funds to make private equity more accessible.
Fuchs & Associes - LPEA: "Private Equity, the Long Term Investor Journey"Rajaa Mekouar
Initiated by Rajaa Mekouar, of Fuchs & Associés, this event aims to provide a unique insight into Private Equity as a viable investment alternative for private investors. At a time of volatile markets and rising macro uncertainty we are witnessing the dislocation of the traditional allocation model of Fixed Income+ Equities mix. This brings about the advent of a new investment allocation paradigm where investors are pushed to explore new asset classes in the search for yield. In this context, Private Equity is gaining ground as a viable alternative that offers an attractive risk/return profile to the well-advised investor.
Organiser/Moderator: Rajaa Mekouar
Keynote speaker: Ian Prideaux, CIO, Grosvenor Estate
Surprise Guest: Yaron Valler, Partner, Target Global
Panelists:
Stephanie Delperdange, SOFINA
Matthias Ummenhofer, Mojo.Capital
Jerome Wittamer, Expon Capital
Swiss wealth managers are observing increased interest from clients in alternative investment strategies, particularly those available through UCITs funds. This is driven by the current low interest rate environment and uncertainty in traditional markets like bonds and equities. Alternative strategies through UCITs funds offer benefits like transparency, regulation, and liquidity compared to traditional offshore hedge funds. Wealth managers recommend including alternative funds focused on long/short equity, market neutral, and trend following strategies to diversify portfolios and generate higher returns than fixed income with lower volatility than equities.
Real Estate Investing 101: Private EquityPeerRealty
This document discusses various concepts related to real estate private equity funds and syndications. It defines different types of investment funds based on their target risk and return profiles, from core funds with the lowest risk and returns to opportunity funds with the highest risk and potential returns. It also outlines key components of a private placement memorandum, specifies versus blind asset pools, pari passu cost and profit sharing, preferred returns and promotes, catch-up provisions, clawback provisions, squeeze down formulas, and round tripping assets.
Equity-linked debentures (ELDs) are fixed income products that provide both capital protection and participation in stock market returns. ELDs invest a portion of principal in fixed income securities to provide capital protection, and the remainder in stock options to provide equity exposure. This structure aims to offer returns higher than fixed maturity plans but lower risk than direct equity investments. ELDs guarantee return of principal at maturity while offering a return linked to the performance of an underlying stock index over the investment period.
Unlisted real estate funds lecture (1) (1)Lj Wicks
NAV
35
30
25
20
£ (mn)
15
10
5
0
-5
-10
-15
-20
2001
2002
2003
2004
2005
2006
1. Unlisted real estate funds are private investment vehicles that aim to provide direct real estate performance through pooling capital from investors to access a diversified portfolio.
2. Key drivers of risk and return for real estate funds include market risk based on allocations, stock risk based on individual asset performance, fund structure risks related to leverage and fees, and accounting policy risks.
3. Performance analysis of UK institutional funds found that market
The document outlines key terms in both a Private Placement Memorandum (PPM) and Limited Partnership Agreement (LPA) for a generic venture capital fund. The PPM would describe the fund's investment strategy, market opportunity, management team experience, and targeted returns. The LPA establishes the fund's legal structure, investment period, management fees, carry allocation, and other standard terms like an expected 10-year term with the ability for extensions. It provides commentary on what language might be used for common terms and industry norms.
This document discusses convertible bonds and the benefits of an absolute return approach to managing a convertible bonds fund. It notes that convertible bonds provide downside protection, equity-like upside, and lower volatility than equities. An absolute return fund allows isolating different drivers of returns in convertible bonds like equity, credit, volatility. This adds flexibility to benefit from these drivers while hedging unwanted risks. The fund aims to generate returns from both outright long positions and hedging strategies.
Get Effective Finance Management and capital Structure Sample Solution for free by helpwithassignment.com
https://www.helpwithassignment.com/finance-assignment-help
Hedge funds typically operate as limited partnerships between investors and fund managers. The fund manager determines investment strategies and makes decisions while also investing personal capital. Investors include accredited individuals and institutions. Hedge funds employ service providers like prime brokers, auditors, and lawyers. Fees include annual management fees of 1-2% of assets as well as performance fees if the fund exceeds a high-water mark.
The document provides an overview of mutual funds, including what they are, their concept, types, objectives, advantages, disadvantages and how to buy one. A mutual fund is a professionally managed investment tool that pools money from investors to purchase securities like stocks, bonds, and money market instruments. The main types discussed are open-ended and close-ended funds, as well as equity, income, balance, money market, gilt and index funds.
We build partnerships by focusing on your destination, not just the investment. For our partners with destinations that lie far in the future, we take a longer, broader view.
Regulation changes in the South African hedge fund industry has created a liquid, well-regulated environment in which all investors can gain access to the diversification benefits that comes with including an alternative component to a traditional portfolio.
Hedge funds and mutual funds both pool money from investors to be professionally managed. However, there are key differences in their investment approaches, investor requirements, and regulations. Hedge funds focus on absolute returns, can invest in any asset class including risky investments, use leverage to enhance returns, run concentrated portfolios, and charge high fees to accredited investors. Mutual funds focus on relative returns, have diversification and compliance requirements, charge lower fees to retail investors, and are highly regulated for investor protection.
This document provides an overview of hedge fund strategies, including equity long/short, convertible arbitrage, and others. It defines equity long/short as a strategy that aims to isolate stock-specific risk and return by holding long positions in stocks expected to outperform and short positions in underperforming stocks from the same sector. Convertible arbitrage seeks to profit from mispricing between convertible bonds and the underlying stock by buying the convertible bond and shorting the stock. Examples are given of how these strategies would perform in different market conditions.
This document provides an overview of collateralized debt obligations (CDOs). It defines CDOs as asset-backed securities that derive returns from underlying assets like bonds, loans, mortgage-backed securities, and credit default swaps. The document outlines the typical CDO structure including parties involved, motivations for managing or investing in CDOs, advantages and disadvantages, cash flows, and lifecycle from warehousing period to maturity. It also discusses types of CDOs and the structuring process for CDO warehouses.
This is the presentation deck from Real Estate Investing 101: Financing, PeerRealty's fourth in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This Financing course analyzes the different types of debt instruments that investors can expect to find in real estate deals. It also discusses common loan agreement provisions, and explains how they can affect your real estate investment.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-financing
Sidney Rostan, an ILS portfolio manager at SCOR Investment Partners, believes that insurance-linked securities (ILS) are very attractive to investors due to their combination of low correlation, low volatility, and resilient performance. ILS has demonstrated unique diversification benefits. While ILS returns are tied to natural catastrophe events rather than economic conditions, the asset class has shown low correlation and low volatility compared to other assets. ILS can thus act as a true diversification instrument in a global asset allocation.
Liquidity in the US corporate bond market has become more challenging in recent years despite significant growth. Secondary market trading, where existing bonds are traded between investors, has seen turnover rates decline for both investment grade and high yield bonds. Additionally, large investment banks that once provided ample liquidity as market makers have significantly reduced their bond inventories and market making activities due to increased regulatory costs. As a result, bond investors should expect greater pricing volatility, higher trading costs, longer execution times, and reduced liquidity compared to the past.
This brochure describes funds operated by East West Advisors that feature principal protection against trading losses. The funds purchase investment grade bonds using 70% of assets to provide principal protection at maturity. The remaining 30% is used for commodity trading which could lose value, but the bonds are intended to cover any losses. However, there is no guarantee principal will be protected if the bonds default. The funds aim to provide non-correlated diversification, uncapped growth potential, and principal protection through their hybrid structure of bonds and commodity trading.
How are insurers investing and what are the most effective investment objectives out there?
POINTS OF DISCUSSION
• Solvency II has had marginal effect on asset allocation decision making
• Insurers are seeking out good quality loans, property, infrastructure and direct lending opportunities
• Insurers portfolios looking to generate higher yields in a risk controlled way
• InsureTech is on the rise and here to stay
[LATAM EN] Convertible bonds offer investors equity-like returns with a risk ...NN Investment Partners
Convertible bonds offer investors potential equity-like returns with lower risk than equities. Convertible bonds have historically outperformed other asset classes over the past 40 years and have lower volatility than equities. NN Investment Partners' convertible bond strategy seeks to capture upside potential from rising equity markets while limiting downside risk through in-depth credit analysis and theme-based equity selection. The strategy focuses on balanced convertibles from a select number of companies that combine solid fundamentals and equity upside potential.
[EN] Convertible bonds offer investors equity-like returns with a risk profil...NN Investment Partners
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
[CH] Convertible bonds offer investors equity-like returns with a risk profil...NN Investment Partners
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
The document outlines key terms in both a Private Placement Memorandum (PPM) and Limited Partnership Agreement (LPA) for a generic venture capital fund. The PPM would describe the fund's investment strategy, market opportunity, management team experience, and targeted returns. The LPA establishes the fund's legal structure, investment period, management fees, carry allocation, and other standard terms like an expected 10-year term with the ability for extensions. It provides commentary on what language might be used for common terms and industry norms.
This document discusses convertible bonds and the benefits of an absolute return approach to managing a convertible bonds fund. It notes that convertible bonds provide downside protection, equity-like upside, and lower volatility than equities. An absolute return fund allows isolating different drivers of returns in convertible bonds like equity, credit, volatility. This adds flexibility to benefit from these drivers while hedging unwanted risks. The fund aims to generate returns from both outright long positions and hedging strategies.
Get Effective Finance Management and capital Structure Sample Solution for free by helpwithassignment.com
https://www.helpwithassignment.com/finance-assignment-help
Hedge funds typically operate as limited partnerships between investors and fund managers. The fund manager determines investment strategies and makes decisions while also investing personal capital. Investors include accredited individuals and institutions. Hedge funds employ service providers like prime brokers, auditors, and lawyers. Fees include annual management fees of 1-2% of assets as well as performance fees if the fund exceeds a high-water mark.
The document provides an overview of mutual funds, including what they are, their concept, types, objectives, advantages, disadvantages and how to buy one. A mutual fund is a professionally managed investment tool that pools money from investors to purchase securities like stocks, bonds, and money market instruments. The main types discussed are open-ended and close-ended funds, as well as equity, income, balance, money market, gilt and index funds.
We build partnerships by focusing on your destination, not just the investment. For our partners with destinations that lie far in the future, we take a longer, broader view.
Regulation changes in the South African hedge fund industry has created a liquid, well-regulated environment in which all investors can gain access to the diversification benefits that comes with including an alternative component to a traditional portfolio.
Hedge funds and mutual funds both pool money from investors to be professionally managed. However, there are key differences in their investment approaches, investor requirements, and regulations. Hedge funds focus on absolute returns, can invest in any asset class including risky investments, use leverage to enhance returns, run concentrated portfolios, and charge high fees to accredited investors. Mutual funds focus on relative returns, have diversification and compliance requirements, charge lower fees to retail investors, and are highly regulated for investor protection.
This document provides an overview of hedge fund strategies, including equity long/short, convertible arbitrage, and others. It defines equity long/short as a strategy that aims to isolate stock-specific risk and return by holding long positions in stocks expected to outperform and short positions in underperforming stocks from the same sector. Convertible arbitrage seeks to profit from mispricing between convertible bonds and the underlying stock by buying the convertible bond and shorting the stock. Examples are given of how these strategies would perform in different market conditions.
This document provides an overview of collateralized debt obligations (CDOs). It defines CDOs as asset-backed securities that derive returns from underlying assets like bonds, loans, mortgage-backed securities, and credit default swaps. The document outlines the typical CDO structure including parties involved, motivations for managing or investing in CDOs, advantages and disadvantages, cash flows, and lifecycle from warehousing period to maturity. It also discusses types of CDOs and the structuring process for CDO warehouses.
This is the presentation deck from Real Estate Investing 101: Financing, PeerRealty's fourth in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This Financing course analyzes the different types of debt instruments that investors can expect to find in real estate deals. It also discusses common loan agreement provisions, and explains how they can affect your real estate investment.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-financing
Sidney Rostan, an ILS portfolio manager at SCOR Investment Partners, believes that insurance-linked securities (ILS) are very attractive to investors due to their combination of low correlation, low volatility, and resilient performance. ILS has demonstrated unique diversification benefits. While ILS returns are tied to natural catastrophe events rather than economic conditions, the asset class has shown low correlation and low volatility compared to other assets. ILS can thus act as a true diversification instrument in a global asset allocation.
Liquidity in the US corporate bond market has become more challenging in recent years despite significant growth. Secondary market trading, where existing bonds are traded between investors, has seen turnover rates decline for both investment grade and high yield bonds. Additionally, large investment banks that once provided ample liquidity as market makers have significantly reduced their bond inventories and market making activities due to increased regulatory costs. As a result, bond investors should expect greater pricing volatility, higher trading costs, longer execution times, and reduced liquidity compared to the past.
This brochure describes funds operated by East West Advisors that feature principal protection against trading losses. The funds purchase investment grade bonds using 70% of assets to provide principal protection at maturity. The remaining 30% is used for commodity trading which could lose value, but the bonds are intended to cover any losses. However, there is no guarantee principal will be protected if the bonds default. The funds aim to provide non-correlated diversification, uncapped growth potential, and principal protection through their hybrid structure of bonds and commodity trading.
How are insurers investing and what are the most effective investment objectives out there?
POINTS OF DISCUSSION
• Solvency II has had marginal effect on asset allocation decision making
• Insurers are seeking out good quality loans, property, infrastructure and direct lending opportunities
• Insurers portfolios looking to generate higher yields in a risk controlled way
• InsureTech is on the rise and here to stay
[LATAM EN] Convertible bonds offer investors equity-like returns with a risk ...NN Investment Partners
Convertible bonds offer investors potential equity-like returns with lower risk than equities. Convertible bonds have historically outperformed other asset classes over the past 40 years and have lower volatility than equities. NN Investment Partners' convertible bond strategy seeks to capture upside potential from rising equity markets while limiting downside risk through in-depth credit analysis and theme-based equity selection. The strategy focuses on balanced convertibles from a select number of companies that combine solid fundamentals and equity upside potential.
[EN] Convertible bonds offer investors equity-like returns with a risk profil...NN Investment Partners
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
[CH] Convertible bonds offer investors equity-like returns with a risk profil...NN Investment Partners
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
[UK] Convertible bonds offer investors equity-like returns with a risk profil...NN Investment Partners
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
[JP] Convertible bonds offer investors equity-like returns with a risk profil...NN Investment Partners
NN Investment Partners explains how convertible bonds offer investors equity-like returns with a risk profile comparable to that of bonds, from November 2015.
This document discusses different types of investments and provides an overview of mutual funds. It defines mutual funds as a trust that pools savings from investors with a common financial goal and invests it in stocks, bonds, and other securities. The document then discusses different types of mutual funds categorized by maturity period (open-ended or close-ended), investment objective (growth, income, balanced, etc.), and sector focus. It also outlines key terms related to mutual funds like NAV, load, portfolio, and expense ratio. Finally, it discusses the growth of the mutual fund industry in India and options for investing in mutual funds online or offline.
This document discusses mutual funds and different types of investments. It begins by defining mutual funds and their structure in India. It then discusses different types of mutual funds categorized by maturity period (open-ended or close-ended) and investment objective (growth, income, balanced, etc.). The document also covers basic terms related to mutual funds, trends in the Indian mutual fund industry, and how to invest in mutual funds online or offline.
Rampver Strategic Advisors is a division of Rampver Financials that provides money and asset management, mutual fund distribution, financial planning, and consulting services. It helps both individuals and institutions with financial planning, retirement plans, and efficient management of investment programs. As a third-party mutual fund distributor with a focus on performance, Rampver is a partner of choice for mutual fund investments in the Philippines.
The document provides an overview of the Emerald Diversified Fund of Funds. It aims to offer low volatility and solid, predictable returns through a diversified portfolio of non-correlated funds focused on areas like commodities trading, real estate, and structured credit. The fund of funds is based in Luxembourg and uses experienced service providers. It seeks to generate returns of 7-9% annually with limited exposure to market fluctuations by selecting managers with established track records in specialized sectors.
The document discusses the Hilltop Decorrelated Fund and its approach to managing liquidity risk. The fund invests predominantly in liquid strategies trading traditional asset classes on international exchanges. It only considers funds that can liquidate their entire holdings within their dealing period. The fund must invest a minimum of 75% of its assets in funds with monthly liquidity or better to protect investors from liquidity risks while still seeking decent returns.
This document provides summaries of various investment concepts including private equity, venture capital, hedge funds, real estate investment trusts (REITs), pension funds, securitization, capping, collar, and other strategies. Private equity consists of equity securities in privately held companies. Venture capital provides funding to early-stage companies. Hedge funds can undertake a wide range of investments and strategies. REITs allow investors to earn income from commercial real estate ownership. Pension funds provide retirement income. Securitization involves pooling debt obligations and selling them as securities. Capping and collaring are options strategies used to limit potential gains or losses on an asset.
The document analyzes investment options among investors in Ludhiana between ULIPs (Unit Linked Insurance Plans) and mutual funds. A survey of 100 investors found that awareness of mutual funds was higher than ULIPs. High income investors and those who refer to brokers were more likely to invest. Open-ended and closed funds were most popular. Insurance benefits and tax breaks drove ULIP investment, while capital appreciation motivated mutual fund investment. Mutual funds were preferred due to greater liquidity and flexibility. Investors expected higher returns from mutual funds than ULIPs. Most wanted to invest for the same tenures in both. Recent ULIP controversies may boost future demand for mutual funds.
The document analyzes and compares ULIPs (Unit Linked Insurance Plans) and mutual funds as investment options among investors in Ludhiana, India. It finds that awareness of mutual funds is higher than ULIPs. High income investors and those who invest in both prefer mutual funds for their flexibility and liquidity. Brokers and references strongly influence investment decisions. Most prefer open-ended and closed funds. Insurance and tax benefits attract ULIP investors, while mutual fund investors prefer capital appreciation. Mutual funds are seen as lower risk and offering higher returns than ULIPs. Most prefer the same investment tenure for both. Recent ULIP controversies may boost future demand for mutual funds.
Similar to [CH] The fixed income vehicle to equities (20)
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Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
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Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024)
[CH] The fixed income vehicle to equities
1. The fixed income
vehicle to equities
Tarek Saber
Head of Convertible Bonds & Lead Portfolio Manager
Convertible Bonds
2. The current low-yielding investing world has created an environment in which the upside of “safe” fixed
income investments has become limited, while market volatility is making equity markets allocations too
risky for many investors. Against this landscape, convertible bonds offer an attractive alternative.
Convertible bonds are corporate bonds that may be exchanged by the
holder for a fixed number of ordinary shares. They can be regarded as
a combination of a fixed income instrument and a stock option, with
the bond limiting downside risk and the option providing equity
participation. Convertibles increase in value alongside equities in rising
markets, while being protected from the inevitable sharp declines --
the value of the underlying bond provides a floor value and prevents
the market price from falling with equities past a certain level. This
bond-floor “parachute” makes convertibles a less painful way of
participating in a company’s equity when things go wrong. Moreover,
convertibles have proven that they can perform with a lower volatility
than equities, and their option-like characteristics enhance their
valuations in times of equity market volatility.
Well-kept secret
Still, convertibles have been overlooked by many investors. The asset
class has developed significantly in the recent years but much
misplaced fear and confusion persists. Concerns about a lack of
convertible issuance appear unfounded; the market for convertibles is
renewing itself at a normal rate of about USD100 billion a year.
Another issue is whether convertible investments should be treated as
an equity or fixed-income allocation. Convertibles should be seen as
an entirely separate allocation that bridges the two classes, and
investors might best view con-vertibles in terms of what contribution
they can make to a portfolio as a whole.
For example, investors whose portfolios are limited to fixed income can
use convertibles to gain equity exposure. For insurers and other
investors with solvency constraints, convertibles’ uncorrelated returns
has gained them favourable treatment under the European Union’s
Solvency II rules. With the size of the global convertible market at
about a quarter of that of the global high-yield market – which has a
separate allocation in almost all institutional mandates – there is a
strong case to be made for a dedicated convertibles allocation. Many
companies limit their bond issues to convertibles. By excluding
convertibles from their portfolios, bond investors in effect exclude
these companies; conversely, convertibles can be seen as adding a
dimension of diversification.
Investment philosophy
NN Investment Partners bases its investment philosophy on two
convictions. One is that convertible bonds provide asymmetrical
returns, as well as equity-like returns with lower volatility over the
economic cycle. The second conviction is that we can enhance these
benefits and outperform the convertible bond asset class. We do this
by selectively investing in convertible bonds with a clear and rigorous
four step process that involves investment in convertibles that offer
equity participation, combined with research-driven credit selection
for capital preservation, disciplined portfolio construction and strict
risk control.
The scope of our investment universe is global, and the goal of our
investment process is to single out the best investment vehicles issued
by the most attractive companies related to our selected themes
regardless of their region or sector. By using themes rather than
sectors, we make use of dynamic rather than fixed stock classifica-
tions that add clarity to what is driving companies valuations going
forward. Our aim is to construct a portfolio of balanced convertible
bonds that is well diversified from a name, sector and theme
perspective. In an ideal world, performance over the cycle would come
from a broad set of themes. Themes that have worked particularly
well in the past are Memory Chip Cycle, US Consumer Spending, Real
Estate Exposure and Health Care Spending. Our five biggest themes
are currently Cloud computing, Corporate Rationalisation, Healthcare
spending, Bank Deleveraging and Electronic Components.
NN Investment Partners does not simply invest in convertible bonds.
We invest in companies, using convertibles as the vehicle through
which to access them. This distinction should serve to reflect the
discipline that our team tries to bring to the investment process as a
whole, a process that leads to a concentrated portfolio of around 30
holdings.
Tarek Saber
Head of Convertible Bonds &
Lead Portfolio Manager
Convertible Bonds
3. About NN Investment Partners
NN Investment Partners is the asset manager of NN Group N.V., a publicly traded corporation. NN
Investment Partners is head-quartered in The Hague, The Netherlands. NN Investment Partners
manages in aggregate approximately EUR 180 bln* (USD 202 bln*) in assets for institutions and
individual investors worldwide. NN Investment Partners employs over 1,200 staff and is active in 16
countries across Europe, Middle East, Asia and U.S.
As of April 07, ING Investment Management has renamed to NN Investment Partners. NN
Investment Partners is part of NN Group N.V., a publicly traded corporation. Currently NN Group is
25.8% owned by ING Group. ING intends to divest the remaining stake in NN Group before 31
December 2016, in line with the timeline ING has agreed with the European Commission.”
*Figures as of 30 September 2015
Disclaimer
The elements contained in this document have been prepared solely for the purpose of information and do not constitute
an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy.
While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express
or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be
subject to change or update without notice. Neither NN Investment Partners B.V., NN Investment Partners Holdings N.V. nor
any other company or unit belonging to the NN Group, nor any of its officers, directors or employees can be held directly or
indirectly liable or responsible with respect to the information and/or recommendations of any kind expressed herein. The in-
formation contained in this document cannot be understood as provision of investment services. If you wish to obtain invest-
ment services please contact our office for advice. Use of the information contained in this document is solely at your risk.
Investment sustains risk. Please note that the value of your investment may rise or fall and also that past performance is not
indicative of future results and shall in no event be deemed as such. This document is not intended and may not be used to
solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or leg-
islation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.