The document discusses structured investing based on decades of financial market data and economic research. It describes a structured investing approach that seeks to capture market returns by investing in large numbers of stocks across asset classes while minimizing costs. It emphasizes investing in stocks, small companies, and value stocks based on academic research identifying these risks as worth taking over the long term. The approach also advocates diversifying globally and across multiple asset classes.
An index reflects movements in the underlying market and expresses price changes over time. Indices are used by institutional investors to analyze strategies and measure performance. The most important type is the market-value weighted index, where components are weighted by their total market capitalization. This includes major indices like the S&P 500. Investors can purchase index funds to obtain returns matching the performance of indices like the ALSI at low cost.
The document provides information about the S&P CNX Nifty and NASDAQ-100 stock indices.
The S&P CNX Nifty tracks the performance of the 50 largest Indian companies listed on the National Stock Exchange of India based on market capitalization. It covers 23 sectors of the Indian economy. The NASDAQ-100 tracks the performance of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. Both indices have eligibility criteria for initial and continued inclusion and use formulae to calculate index values based on the market values and weights of constituent securities.
Structured Investing In An Unstructured WorldRobert Davis
Structured Investing is based on 80+ years of financial market data, Nobel Prize-winning economic research, and in-depth studies of investor psychology and behavior.
Dimensional Fund Advisors' powerful slides on the small cap and value effect detail how small stocks and value stocks enhance portfolio returns and explain portfolio performance.
Pillar Capital provides investment management services focused on dimensions of returns, diversification, and investor discipline. Dimensions of returns refers to systematic differences in expected returns based on factors like company size, relative price, and profitability. Historical data shows that investing based on these dimensions has rewarded long-term investors. Portfolios can be structured to target dimensions shown to produce premiums, like favoring small cap, value, and high-profitability companies.
The document discusses the performance of various model investment portfolios from 1973-2010. It provides the annualized compound returns and annualized standard deviations for 5 model portfolios over this period. The model portfolios had varying allocations to US and international stocks, bonds, and emerging markets. Model portfolio 5, which had the most diversified allocation, achieved the highest annualized return of 11.65% and relatively low standard deviation of 11.26% compared to the other portfolios.
An index is constructed to measure movements in financial markets like stocks and bonds. The SENSEX is India's oldest stock market index, first compiled in 1986 based on 30 large, established companies. It uses a free-float methodology, where the index level reflects the free-float market value of component stocks relative to a base period. Stocks are selected based on criteria like market capitalization, liquidity, and representation of key industries.
Stock market and the economy ppt slidesRafik Algeria
The document discusses the relationship between the stock market and economic activity. It begins by introducing the topic and explaining how firms raise funds through debt and equity financing. It then defines what a stock market is, how stocks are traded, and how stock prices are determined by supply and demand. Several factors that can influence stock prices are explained, including economic conditions, firm-specific factors, and market factors. The relationship between the stock market and broader economy is explored, specifically how changes in the stock market can impact aggregate demand and economic growth through wealth and investment effects, and how economic conditions can in turn impact stock prices and investor sentiment. The role of the Federal Reserve in responding to stock market fluctuations is also summarized.
An index reflects movements in the underlying market and expresses price changes over time. Indices are used by institutional investors to analyze strategies and measure performance. The most important type is the market-value weighted index, where components are weighted by their total market capitalization. This includes major indices like the S&P 500. Investors can purchase index funds to obtain returns matching the performance of indices like the ALSI at low cost.
The document provides information about the S&P CNX Nifty and NASDAQ-100 stock indices.
The S&P CNX Nifty tracks the performance of the 50 largest Indian companies listed on the National Stock Exchange of India based on market capitalization. It covers 23 sectors of the Indian economy. The NASDAQ-100 tracks the performance of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. Both indices have eligibility criteria for initial and continued inclusion and use formulae to calculate index values based on the market values and weights of constituent securities.
Structured Investing In An Unstructured WorldRobert Davis
Structured Investing is based on 80+ years of financial market data, Nobel Prize-winning economic research, and in-depth studies of investor psychology and behavior.
Dimensional Fund Advisors' powerful slides on the small cap and value effect detail how small stocks and value stocks enhance portfolio returns and explain portfolio performance.
Pillar Capital provides investment management services focused on dimensions of returns, diversification, and investor discipline. Dimensions of returns refers to systematic differences in expected returns based on factors like company size, relative price, and profitability. Historical data shows that investing based on these dimensions has rewarded long-term investors. Portfolios can be structured to target dimensions shown to produce premiums, like favoring small cap, value, and high-profitability companies.
The document discusses the performance of various model investment portfolios from 1973-2010. It provides the annualized compound returns and annualized standard deviations for 5 model portfolios over this period. The model portfolios had varying allocations to US and international stocks, bonds, and emerging markets. Model portfolio 5, which had the most diversified allocation, achieved the highest annualized return of 11.65% and relatively low standard deviation of 11.26% compared to the other portfolios.
An index is constructed to measure movements in financial markets like stocks and bonds. The SENSEX is India's oldest stock market index, first compiled in 1986 based on 30 large, established companies. It uses a free-float methodology, where the index level reflects the free-float market value of component stocks relative to a base period. Stocks are selected based on criteria like market capitalization, liquidity, and representation of key industries.
Stock market and the economy ppt slidesRafik Algeria
The document discusses the relationship between the stock market and economic activity. It begins by introducing the topic and explaining how firms raise funds through debt and equity financing. It then defines what a stock market is, how stocks are traded, and how stock prices are determined by supply and demand. Several factors that can influence stock prices are explained, including economic conditions, firm-specific factors, and market factors. The relationship between the stock market and broader economy is explored, specifically how changes in the stock market can impact aggregate demand and economic growth through wealth and investment effects, and how economic conditions can in turn impact stock prices and investor sentiment. The role of the Federal Reserve in responding to stock market fluctuations is also summarized.
OTCQX: The Clear Advantage -- Research StudySaskianna
OTC Markets Group commissioned strategic advisory firm Oxford Metrica to conduct an independent study examining the impact of trading on OTCQX, the top U.S. over-the-counter (“OTC”) market, in terms of share liquidity, bid-ask spreads, broker-dealer coverage, and investor perception.
The study evaluated all securities that traded on OTCQX for at least three months during the three years prior to October 31, 2015, a total of 397 primary securities with $1 trillion in combined market capitalization. Liquidity was analyzed for the six months prior to joining OTCQX compared with the subsequent six months.
Businesses may be organized in a number of different ways, including sole proprietorships, partnerships or corporations. A business may offer to sell a portion of its ownership by issuing stock.
Parametric provides strategies for exploiting increased market volatility, including rebalancing portfolios and using options strategies. Rebalancing reduces concentration risks and volatility over time by selling assets that have increased in value and buying those that have decreased, capturing returns from volatility. Options strategies can also provide downside protection for portfolios while retaining upside potential. Parametric implemented an options overlay for a client in 2008 that protected against a 5-20% market decline while retaining upside to 30%, balancing protection and participation in gains.
There is a cost to indexing that most investors are unaware of. It is called “reconstitution.”
A blog post is scheduled for 8 Feb 2017 discussing this article.
http://wp.me/p2Oizj-Hh
This document provides an overview of investing in stocks, including:
1) It defines different types of securities like stocks, bonds, mutual funds, and outlines factors to consider when beginning to invest in stocks like a company's financials.
2) It explains why corporations issue common stock and why investors purchase common stock, focusing on potential dividends and stock appreciation.
3) It covers strategies for buying, selling, and classifying different types of stocks and factors that influence investment decisions like financial metrics and analysis theories.
Aftermarket Support: How to Create a Liquid Public Stockkeatingcapital
Public companies can enjoy many benefits, particularly significantly higher
valuations and superior access to capital, compared to privately owned
businesses. These benefits are conditional on the existence of a “liquid” market
for the company’s shares. Illiquidity can prevent the stock of a smaller public
issuer from achieving the higher valuations enjoyed by its peers, thereby negating
one of the primary benefits of being public. The goal of any publicly traded
company, therefore, should be to have its stock become widely held, actively
traded, fully valued, and covered by at least one research analyst. But what
exactly do these things mean? This white paper creates a framework for
objectively defining and quantifying these terms and outlines a path to the holy
grail of liquidity.
The document discusses the stock market boom of the late 1990s and its impact on the US economy. It finds that the stock market boom between 1995 and 2000 added significantly to economic growth during that period, with estimates that GDP growth was 1.5% higher each year due to the wealth effects of rising stock prices. However, it also led to issues like a lower personal saving rate, a higher trade deficit, and made the economy more vulnerable when the bubble burst in 2001-2002. The document concludes that without the stock boom, the 1990s expansion would not have looked as strong and the 2001 recession may not have occurred.
The document provides an overview of the stock market and how it works. It discusses what stocks are, how they are traded, and some key stock market indexes like the BSE SENSEX and Nifty 50. It also covers important concepts like fundamental analysis, technical analysis, and factors that influence stock prices. The document concludes with tips for making money in the stock market through diversification, patience, and avoiding overtrading.
The document provides an overview of the stock market and key concepts related to technical analysis. It defines the stock market as the business of buying and selling shares of companies and explains why companies issue stock and why people buy it. It then discusses key technical analysis concepts like bulls and bears, trends in prices, and the three assumptions of technical analysis - that the market discounts everything, price moves in trends, and history tends to repeat itself. It also compares technical analysis to fundamental analysis and their differences in terms of time horizon and goals.
The casual analysis of market moves in Q1 2016 does not fully explain the performance of hedge funds over the period. In addition to changes in global macroeconomic conditions and market dynamics over the course of the quarter, hedge fund performance was driven by the impact of momentum and concentration across portfolios and the structure and behavior of multi-strategy funds.
This document provides guidance on building an effective investment portfolio through diversification and managing risk. It recommends creating an asset allocation policy based on your risk tolerance that diversifies across asset classes like stocks and bonds. Specific funds should then be selected within each asset class and regularly monitored to ensure the portfolio still matches your goals and risk profile as markets change over time. The focus should be on long-term growth while minimizing downside risk through this diversified, balanced approach.
This document discusses hedge fund investment philosophy and manager selection. It makes the following key points:
1) Hedge fund returns come from systematic risk premiums, liquidity premiums, and alpha, which are amplified by leverage. True alpha is rare and hard to achieve consistently.
2) Successful manager selection focuses on those with a sustainable competitive edge investing in less crowded strategies, and an understanding of how to reduce risk in stressful times.
3) The selection process profiles managers' investment beliefs, alpha generation process, and risk philosophy to construct an expected return distribution for each manager.
1) The document discusses the investment principles of the DSP Value Fund, which focuses on finding quality companies at sensible prices rather than mediocre companies at cheap prices.
2) It provides an overview of value investing strategies and frameworks, including classical value investing based on intrinsic value and other evolving approaches.
3) The document outlines the DSP Value Fund's investment process, which involves screening companies based on quality criteria, eliminating poor quality and high valuation stocks, and constructing a portfolio with a flexicap approach and dynamic cash allocations based on valuations.
The document discusses equity investments and the capital markets. It provides an overview of different types of investments including stocks, bonds, and mutual funds. It also outlines the key steps in planning an investment strategy, including setting objectives, selecting asset types and ratios, portfolio management, and analysis. Factors to consider when selecting investments are discussed such as returns, risk, liquidity, and taxes.
The document outlines a successful investing strategy of buying a low-cost index fund and holding it forever. It explains that most actively managed mutual funds fail to beat the market after fees, which average 2.5% annually. Over long periods of time, these costs overwhelm returns and compound, so that an initial $100,000 investment grows to only $1,450,400 in 50 years at a net 5.5% return in a mutual fund, versus $4,690,000 at an 8% gross market return in a low-cost index fund. Therefore, the best strategy is to keep costs low by investing in broad-based index funds.
This document discusses a new fund called the DSP Floater Fund. The fund aims to generate returns from periodic accruals from sovereign positions, capital gains/losses from sovereign and paid overnight index swap positions, and benefits from both active and passive fund management through its strategy of active management of paid overnight index swap positions and a roll down strategy for government securities. The fund seeks to invest only in sovereign securities and paid positions in overnight index swaps to avoid credit risk. It aims to help investors navigate rising and falling interest rate cycles by using gains from government securities in falling cycles and gains from paid OIS positions in rising cycles. The document discusses the fund's strategy, risks, and positioning based on current spreads between government securities and
This ppt is expressed about the importance of investing in real world. Investing in the stock market has the capability to hegemony the power of inflations. In this ppt, included about the type of investment as well as information on the stock market from the basic level in an attractive way. It depicts a clear picture of investment and understands the concept of how easy to enter in stock market.
The document provides an overview of equity investments and security markets. It discusses various topics including types of capital markets, structure of securities exchanges, types of orders and margin transactions. It also summarizes key concepts related to stock market indices, market efficiency, security valuation techniques, industry and company analysis factors that affect stock valuation. The document is aimed to educate readers on fundamentals of equity investments and security analysis.
France is an attractive location for investment for several reasons:
1. It has a large, highly skilled workforce and is a global economic power with the second largest economy in the EU.
2. It is very open to foreign investment and has competitive operating costs compared to other European countries.
3. The government offers substantial tax incentives and credits for research and development investments.
Vineet Bhansali's document provides information about the stock market in France. It discusses the key stock exchanges in France, including Euronext Paris and Bourse de Paris. It also describes some of the major stock market indices for France, such as the CAC 40 index. The CAC 40 tracks the stock performance of 40 large French companies and nearly half of the shares in the index are owned by foreign investors from countries like Germany, Japan, the US, and UK. In conclusion, the document summarizes that although France has some economic challenges, its stock market has still performed relatively well compared to other European markets.
OTCQX: The Clear Advantage -- Research StudySaskianna
OTC Markets Group commissioned strategic advisory firm Oxford Metrica to conduct an independent study examining the impact of trading on OTCQX, the top U.S. over-the-counter (“OTC”) market, in terms of share liquidity, bid-ask spreads, broker-dealer coverage, and investor perception.
The study evaluated all securities that traded on OTCQX for at least three months during the three years prior to October 31, 2015, a total of 397 primary securities with $1 trillion in combined market capitalization. Liquidity was analyzed for the six months prior to joining OTCQX compared with the subsequent six months.
Businesses may be organized in a number of different ways, including sole proprietorships, partnerships or corporations. A business may offer to sell a portion of its ownership by issuing stock.
Parametric provides strategies for exploiting increased market volatility, including rebalancing portfolios and using options strategies. Rebalancing reduces concentration risks and volatility over time by selling assets that have increased in value and buying those that have decreased, capturing returns from volatility. Options strategies can also provide downside protection for portfolios while retaining upside potential. Parametric implemented an options overlay for a client in 2008 that protected against a 5-20% market decline while retaining upside to 30%, balancing protection and participation in gains.
There is a cost to indexing that most investors are unaware of. It is called “reconstitution.”
A blog post is scheduled for 8 Feb 2017 discussing this article.
http://wp.me/p2Oizj-Hh
This document provides an overview of investing in stocks, including:
1) It defines different types of securities like stocks, bonds, mutual funds, and outlines factors to consider when beginning to invest in stocks like a company's financials.
2) It explains why corporations issue common stock and why investors purchase common stock, focusing on potential dividends and stock appreciation.
3) It covers strategies for buying, selling, and classifying different types of stocks and factors that influence investment decisions like financial metrics and analysis theories.
Aftermarket Support: How to Create a Liquid Public Stockkeatingcapital
Public companies can enjoy many benefits, particularly significantly higher
valuations and superior access to capital, compared to privately owned
businesses. These benefits are conditional on the existence of a “liquid” market
for the company’s shares. Illiquidity can prevent the stock of a smaller public
issuer from achieving the higher valuations enjoyed by its peers, thereby negating
one of the primary benefits of being public. The goal of any publicly traded
company, therefore, should be to have its stock become widely held, actively
traded, fully valued, and covered by at least one research analyst. But what
exactly do these things mean? This white paper creates a framework for
objectively defining and quantifying these terms and outlines a path to the holy
grail of liquidity.
The document discusses the stock market boom of the late 1990s and its impact on the US economy. It finds that the stock market boom between 1995 and 2000 added significantly to economic growth during that period, with estimates that GDP growth was 1.5% higher each year due to the wealth effects of rising stock prices. However, it also led to issues like a lower personal saving rate, a higher trade deficit, and made the economy more vulnerable when the bubble burst in 2001-2002. The document concludes that without the stock boom, the 1990s expansion would not have looked as strong and the 2001 recession may not have occurred.
The document provides an overview of the stock market and how it works. It discusses what stocks are, how they are traded, and some key stock market indexes like the BSE SENSEX and Nifty 50. It also covers important concepts like fundamental analysis, technical analysis, and factors that influence stock prices. The document concludes with tips for making money in the stock market through diversification, patience, and avoiding overtrading.
The document provides an overview of the stock market and key concepts related to technical analysis. It defines the stock market as the business of buying and selling shares of companies and explains why companies issue stock and why people buy it. It then discusses key technical analysis concepts like bulls and bears, trends in prices, and the three assumptions of technical analysis - that the market discounts everything, price moves in trends, and history tends to repeat itself. It also compares technical analysis to fundamental analysis and their differences in terms of time horizon and goals.
The casual analysis of market moves in Q1 2016 does not fully explain the performance of hedge funds over the period. In addition to changes in global macroeconomic conditions and market dynamics over the course of the quarter, hedge fund performance was driven by the impact of momentum and concentration across portfolios and the structure and behavior of multi-strategy funds.
This document provides guidance on building an effective investment portfolio through diversification and managing risk. It recommends creating an asset allocation policy based on your risk tolerance that diversifies across asset classes like stocks and bonds. Specific funds should then be selected within each asset class and regularly monitored to ensure the portfolio still matches your goals and risk profile as markets change over time. The focus should be on long-term growth while minimizing downside risk through this diversified, balanced approach.
This document discusses hedge fund investment philosophy and manager selection. It makes the following key points:
1) Hedge fund returns come from systematic risk premiums, liquidity premiums, and alpha, which are amplified by leverage. True alpha is rare and hard to achieve consistently.
2) Successful manager selection focuses on those with a sustainable competitive edge investing in less crowded strategies, and an understanding of how to reduce risk in stressful times.
3) The selection process profiles managers' investment beliefs, alpha generation process, and risk philosophy to construct an expected return distribution for each manager.
1) The document discusses the investment principles of the DSP Value Fund, which focuses on finding quality companies at sensible prices rather than mediocre companies at cheap prices.
2) It provides an overview of value investing strategies and frameworks, including classical value investing based on intrinsic value and other evolving approaches.
3) The document outlines the DSP Value Fund's investment process, which involves screening companies based on quality criteria, eliminating poor quality and high valuation stocks, and constructing a portfolio with a flexicap approach and dynamic cash allocations based on valuations.
The document discusses equity investments and the capital markets. It provides an overview of different types of investments including stocks, bonds, and mutual funds. It also outlines the key steps in planning an investment strategy, including setting objectives, selecting asset types and ratios, portfolio management, and analysis. Factors to consider when selecting investments are discussed such as returns, risk, liquidity, and taxes.
The document outlines a successful investing strategy of buying a low-cost index fund and holding it forever. It explains that most actively managed mutual funds fail to beat the market after fees, which average 2.5% annually. Over long periods of time, these costs overwhelm returns and compound, so that an initial $100,000 investment grows to only $1,450,400 in 50 years at a net 5.5% return in a mutual fund, versus $4,690,000 at an 8% gross market return in a low-cost index fund. Therefore, the best strategy is to keep costs low by investing in broad-based index funds.
This document discusses a new fund called the DSP Floater Fund. The fund aims to generate returns from periodic accruals from sovereign positions, capital gains/losses from sovereign and paid overnight index swap positions, and benefits from both active and passive fund management through its strategy of active management of paid overnight index swap positions and a roll down strategy for government securities. The fund seeks to invest only in sovereign securities and paid positions in overnight index swaps to avoid credit risk. It aims to help investors navigate rising and falling interest rate cycles by using gains from government securities in falling cycles and gains from paid OIS positions in rising cycles. The document discusses the fund's strategy, risks, and positioning based on current spreads between government securities and
This ppt is expressed about the importance of investing in real world. Investing in the stock market has the capability to hegemony the power of inflations. In this ppt, included about the type of investment as well as information on the stock market from the basic level in an attractive way. It depicts a clear picture of investment and understands the concept of how easy to enter in stock market.
The document provides an overview of equity investments and security markets. It discusses various topics including types of capital markets, structure of securities exchanges, types of orders and margin transactions. It also summarizes key concepts related to stock market indices, market efficiency, security valuation techniques, industry and company analysis factors that affect stock valuation. The document is aimed to educate readers on fundamentals of equity investments and security analysis.
France is an attractive location for investment for several reasons:
1. It has a large, highly skilled workforce and is a global economic power with the second largest economy in the EU.
2. It is very open to foreign investment and has competitive operating costs compared to other European countries.
3. The government offers substantial tax incentives and credits for research and development investments.
Vineet Bhansali's document provides information about the stock market in France. It discusses the key stock exchanges in France, including Euronext Paris and Bourse de Paris. It also describes some of the major stock market indices for France, such as the CAC 40 index. The CAC 40 tracks the stock performance of 40 large French companies and nearly half of the shares in the index are owned by foreign investors from countries like Germany, Japan, the US, and UK. In conclusion, the document summarizes that although France has some economic challenges, its stock market has still performed relatively well compared to other European markets.
SENSEX is an index of 30 well-established Indian companies that represents the performance of key industries. It is calculated using a free-float market capitalization methodology, where the index level reflects the total free-float market value of the 30 component stocks relative to a base period. Stocks are selected based on criteria like market capitalization, liquidity, track record, and representation of different industries. The SENSEX is widely reported as a benchmark of the Indian stock market.
The CAC 40 is France's benchmark stock market index. It consists of 40 of the largest French stocks trading on Euronext Paris. Components are reviewed quarterly and weighted by free float market capitalization, with a cap of 15%. The index has been impacted by events like the dot-com bubble, subprime crisis, and Eurozone crisis. It is calculated every 15 seconds and tracks various industries like financials, communications, utilities and consumer goods.
IR 2.0 International Benchmark Study / University of LeipzigKristin Koehler
The cross-national IR 2.0 study conducted by the University of Leipzig / Department Communication Management in summer 2011 focused on company-owned investor relations websites as well as Twitter, Facebook, YouTube and SlideShare usage for IR purposes by the 150 largest companies listed in DAX, CAC, FTSE, DJIA and Nikkei. The content analysis revealed usage patterns and identified tools, topics, and intensity of use, dialogical approaches and functions. An engagement index offered the possibility for ranking lists within the indices as well as among the different countries. Additionally, the influence of industrial sectors or sales markets was tested.
The document provides information about key stock market indices in India, including the BSE Sensex and Nifty 50. It discusses what they are, how they are calculated, their objectives, and historical performance. Specifically, it notes that the Sensex is a market capitalization-weighted index of 30 large, well-established companies listed on the Bombay Stock Exchange. It aims to measure market movements, serve as a benchmark for fund performance, and facilitate index-based derivatives. The top sectors and companies in the Sensex by weight are also outlined.
Empirical study investigating how corporations in the United States, Germany, United Kingdom, France, and Japan use social media for financial communications, both on their own websites and on external platforms including mobile channels. Global benchmark of 190 companies including the 150 largest firms listed on DJIA (Dow Jones Industrial Average, USA), FTSE (Financial Times London Stock Exchange Index, UK), CAC (Cotation Assistée en Continu quarante, France), DAX (Deutscher Aktien-Index, Germany), NIKKEI (Nihon Keizai Shimbun Index, Japan), as well as the top 10 companies in regard to market cap, and the top 10 companies in regard to performance of the US mid- and small-cap indices Russell Midcap and Russell 2000. As the third annual study in a row, this research provides longitudinal data and in-depth analysis based on content analysis and statistical evaluation. Authors: Ansgar Zerfass and Kristin Koehler, University of Leipzig, Germany
The document discusses the differences between stock markets and share markets, which essentially mean the same thing. It describes stocks as units of ownership in a company that can be traded, while shares are certificates of ownership issued by companies to raise funds. The stock market is an organized market for trading stocks and shares of government bodies and corporations. It also defines primary and secondary markets, as well as different types of stocks and indexes used in Indian stock markets like the BSE and NSE.
English rules
- Finance
- Science and technology
- Universities
- Advertising
- Computing
- Publishing industry
- Entertainment
- International organisations
- International transportation
- Interpreting and translation
EY French Venture Capital Barometer - Annual results 2015EY
The EY French Venture Capital Barometer identifies financing operations in equity of companies in their creation phase or during their first years after creation, from 1st of January to 31st of December 2015, published before the 14th of January 2016.
The document discusses equity trading in India and the future of online trading and demat accounts. It provides an overview of Sharekhan Ltd, a stock brokerage firm that offers online trading and depository services. The document analyzes Sharekhan's products, services, competitors and discusses factors like increasing online trading that positively impact the company's future growth prospects. Customer surveys found that awareness of equity trading is high but people prefer less risky investments. The document recommends that Sharekhan expand its branch network and reduce account opening times to better serve more customers.
This document discusses innovations in finance from the 1950s to today. It begins by outlining conventional wisdom from the 1930s that focused on picking individual winners and holding concentrated portfolios. It then summarizes several seminal works and developments that helped shift the field: James Tobin's separation theorem emphasized diversification; William Sharpe developed the single-factor capital asset pricing model relating risk and return; Eugene Fama developed the efficient market hypothesis asserting that markets accurately reflect information. This led to the development of index funds by John Bogle, providing low-cost, passive investment options. Overall, the document outlines major theoretical and practical innovations that professionalized the field of finance and emphasized diversification, risk-adjusted returns, and passive investing.
SaaS/subscription businesses are much more complex than traditional businesses, and SaaS performance cannot be measured in the same way as traditional businesses are measured. Based on a talk given at the SaaStr Annual Conference in San Francisco, this slide deck offers a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business, and how these can be used to drive SaaS success. This presentation includes information on:
- An intro to SaaS metrics
- Unit economics
- LTV and churn: An in-depth look
- Variable pricing axes
- Months to recover CAC
- The primary unit of growth: Sales
- Understanding public SaaS companies
The document discusses the NIFTY and SENSEX stock market indices of India. It provides details on:
1) How the SENSEX and NIFTY indices are calculated based on the free-floating market capitalization of their constituent stocks. The SENSEX includes 30 stocks and uses 1978-79 as the base year, while NIFTY includes 50 stocks and uses 1995 as the base year.
2) The major companies that make up the SENSEX (e.g. Reliance, TCS, HDFC Bank) and NIFTY (same top companies).
3) A brief history of the National Stock Exchange and the objectives and products it offers.
The document discusses strategies for creating an investment portfolio based on Nobel Prize-winning academic research. It recommends structuring portfolios to take advantage of factors like company size, relative price, and profitability that have been shown to increase returns. Specifically, it suggests investing more in small and value stocks, as both have higher returns than large or growth stocks over the long run. The document also provides examples of model portfolios that diversify across global stock and bond index funds targeting these factors.
1) Adidas acquired Reebok in 2005 for 3.1 billion euros to gain a stronger foothold in the US market and better compete with Nike.
2) At the time of the merger, Nike had 36% of the US athletic shoe market, while Adidas and Reebok had 8.9% and 12.2% respectively.
3) The merger combined Adidas' strength in higher-end performance shoes with Reebok's focus on the middle market, but integrating their different cultures posed challenges to realizing the benefits of the deal.
The document discusses the Sensex and Nifty stock market indices in India. It provides the following key points:
1. Sensex is an index of the top 30 companies on the Bombay Stock Exchange that indicates if stock prices are generally rising or falling. Nifty is an index of the top 50 companies on the National Stock Exchange.
2. Both indices are calculated based on the total market value and capitalization of their component stocks.
3. The Indian stock market experienced a meltdown in 2008 as foreign investors withdrew money due to high domestic inflation, unstable politics, rising fuel prices, and a slowing US economy that was showing signs of recession.
Stock market indices are useful tools for understanding market trends and performance. The BSE SENSEX tracks 30 major companies on the Bombay Stock Exchange, with its base value set at 100 in 1978-1979. It is calculated using each company's free float market capitalization. Similarly, the NIFTY index tracks 50 major National Stock Exchange companies, with its base year being 1995 and base value at 1000. Both indices are weighted averages and act as benchmarks for measuring portfolio and economic performance in India.
Strenghs and weaknesses of CAC 40 materiality assessmentsMarionMartorell
The document discusses materiality assessments conducted by CAC 40 companies. It finds that while transparency around materiality assessments has increased, with most companies publishing materiality matrices, many assessments still lack strategic perspective, representativeness of stakeholders consulted, and follow up. It recommends that companies take a more robust analytical approach to link material issues to risks, opportunities and performance, and engage a wider range of internal and external stakeholders. A strategic, long-term approach integrating materiality more fully into reporting and management would help companies better address sustainability challenges.
Webinar on Structured Investing - A deliberate and thoughtful investment process designed to help you achieve your lifetime financial goals and focus on what matters most to you, whether it is putting your children through college, philanthropy or a secure retirement.
Design, build, protect with Capital AssociatesMitch Katz
This document discusses Loring Ward's approach to financial planning and investment management. It outlines their three-step process of designing a tailored plan to meet clients' goals, building portfolios using academic research, and protecting plans by providing guidance. It promotes diversifying globally and incorporating small and value stocks. Charts show long-term stock market growth and benefits of rebalancing. The goal is helping clients achieve financial security and stay on track to reach their "someday."
This document discusses pursuing a better investment experience by embracing principles such as embracing market pricing, not trying to outguess the market, resisting chasing past performance, letting markets work for investors, considering drivers of returns, practicing smart diversification, avoiding market timing, managing emotions, not confusing entertainment with advice, and focusing on what can be controlled. The key ideas are that following basic principles of prudent investing over long periods can help investors achieve better results than trying to beat the market through tactics like stock picking, market timing, or chasing past performance.
This document provides guidance on pursuing a better investment experience. It recommends embracing market pricing, not trying to outguess the market, resisting chasing past performance, letting markets work for you long-term, considering drivers of returns like company size and profitability, practicing smart diversification globally, avoiding market timing, managing emotions, focusing on long-term advice over entertainment, and controlling what you can like having a tailored plan.
1. The document discusses key principles for improving the odds of investment success, including embracing market pricing, not trying to outguess the market through timing, and resisting chasing past performance.
2. It notes that most mutual funds do not maintain top performance over time and that past returns are not predictive of future returns. Investors are advised to consider the drivers of returns like market risk premia.
3. The principles also emphasize smart diversification across market segments, avoiding reactive investing to headlines, and focusing on controlling what you can, like expenses and discipline, rather than market movements.
Loring Ward is an investment advisor registered with the SEC. The strategies discussed may not achieve their objectives and involve risks, including loss of principal. Securities are offered through Loring Ward Securities.
Dimensional Fund Advisors promotes an investment approach based on financial science and decades of market research rather than speculation. It aims to deliver market returns by designing portfolios that capture compensated risks like small cap stocks and value stocks, while avoiding unnecessary risks. Dimensional focuses on broad diversification, smart trading to reduce costs, and engineering portfolios around dimensions shown to generate higher returns like market capitalization and value.
Pursuing a Better Investment Experience with Capital AssociatesRobUgiansky
This document outlines 10 key principles for improving the odds of investment success:
1) Embrace market pricing and the information incorporated into prices.
2) Don't try to outguess the market through stock picking or market timing as most funds do not outperform their benchmarks.
3) Resist chasing past performance as it does not predict future returns.
4) Let markets work for you through long-term investing as this has rewarded investors over time.
1. The document provides information to help investors diversify their retirement plan investments and manage risk. It discusses the basics of different asset classes like stocks, bonds, and capital preservation instruments.
2. Sample investor profiles are provided to help investors determine an appropriate asset allocation based on their time horizon and risk tolerance. A variety of ready-mixed and individual fund options are available through the plan.
3. Rebalancing is discussed as a strategy to manage risk over time by adjusting allocations back to their original targets when market fluctuations cause them to diverge.
This document provides guidance on pursuing a better investment experience. It recommends embracing market pricing, not trying to outguess the market, resisting chasing past performance, letting markets work for you long-term, considering drivers of returns like value and profitability, practicing smart diversification globally, avoiding market timing, managing emotions, ignoring entertainment over advice, and focusing on controllable factors like a personalized financial plan.
The document provides disclosures and sources for several exhibits. Exhibit 1 discloses trading data sources for world equity trading volumes. Exhibit 2 describes the mutual fund sample and methodology used to determine "winner" funds that outperformed benchmarks. Exhibit 3 explains how the analysis was conducted to determine the percentage of top-ranked funds that maintained their ranking in subsequent years. The source for Exhibits 2 and 3 is also provided.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
The Fundamentals of Asset Class InvestingMitch Katz
A globally diversified portfolio outperformed an S&P 500 index portfolio from 2000 to 2018 despite two major market corrections and a recession. The diversified portfolio had an annualized return of 4.92% compared to 4.86% for the S&P 500, with less volatility. Taking regular withdrawals, the diversified portfolio maintained its value better, ending with $237,239 after 19 years of 5% annual withdrawals growing 3%, while the S&P 500 portfolio was exhausted. Diversification and asset class investing can help portfolios sustain retirement withdrawals over long periods.
Wealth advisors LLC pursues a better investment experience for its clients by embracing principles of prudent diversification and avoiding behaviors that often undermine returns, such as market timing, chasing past performance, and overreacting to short-term market movements. The firm recommends low-cost, globally diversified portfolios and advises clients to focus on what they can control - their investment plan, taxes, and expenses - rather than trying to outguess unpredictable markets. By following these disciplined strategies, the firm aims to help clients achieve superior long-term returns.
Pursuing a Better Investment Experience Brochure BrandedTheresa M. Mahoney
The Bridgeway Group is a financial services firm with offices in Pasadena and Covina, California. It offers securities and advisory services through Commonwealth Financial Network. The document includes various exhibits with disclosures related to mutual fund performance, dimensions of expected returns, benefits of diversification, and avoiding reactions to short-term market movements. It emphasizes focusing on factors within an investor's control and maintaining a long-term perspective.
The document provides an overview of market volatility and downturns. It discusses how declines are normal aspects of the market cycle and outlines historical data on the average length and frequency of different types of declines. It also notes that expansions have typically lasted longer than recessions throughout history.
The document provides an overview and analysis of financial markets in 2009. It discusses the economic turmoil affecting markets, outlines different types of market declines, and analyzes stock and bond returns over time. The document emphasizes maintaining realistic expectations, the benefits of long-term investing, and risks of trying to time the market.
This document provides an overview of the economic downturn in 2008 and perspectives on investing going forward. It discusses events like bank failures, government interventions, and falling stock markets. While markets will experience ups and downs, historically most markets show long-term gains. The document recommends that investors don't overreact, think long term, assess their situation and goals, and look for opportunities once the economy recovers.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Does teamwork really matter? Looking beyond the job posting to understand lab...
Structured Investing
1. LWI Financial, Inc. (“Loring Ward”). Securities offered through Loring Ward Securities, Inc. (or your advisor’s affiliates) Member FINRA/SIPC #07-427 (4/09)
2.
3.
4.
5.
6. Risks associated with investing in stocks potentially include increased volatility (up and down movement in the value of your assets) and loss of principal. Indexes are unmanaged baskets of securities that investors cannot directly invest in. Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1927 and kept invested through December 31, 2008. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Total returns in U.S. dollars. Long Term Government Bonds, One-Month US Treasury Bills, and US Consumer Price Index (inflation), source: Morningstar’s 2007 Stocks, Bonds, Bills, And Inflation Yearbook (2008); Fama/French Total U.S. Market Index provided by Fama/French from Center for Research in Security Prices (CRSP) data. Includes all NYSE securities (plus Amex equivalents since July 1962 and NASDAQ equivalents since 1973), including utilities. Invest in Stocks Growth of $1 Jan. 1, 1927 – Dec. 31, 2008
7. Indexes are unmanaged baskets of securities that investors cannot directly invest in. Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1927 and kept invested through December 31, 2008. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Total returns in U.S. dollars. Fama/French Total U.S. Market Index provided by Fama/French from Center for Research in Security Prices (CRSP) data. Includes all NYSE securities (plus Amex equivalents since July 1962 and NASDAQ equivalents since 1973), including utilities. The Standard & Poor's 500 Index is an unmanaged market value-weighted index of 500 stocks that are traded on the NYSE, AMEX and NASDAQ. The weightings make each company's influence on the index performance directly proportional to that company's market value. The Center for Research in Security Prices (CRSP) ranks all NYSE companies by market capitalization and divides them into 10 equally-populated portfolios. AMEX and NASDAQ National Market stocks are then placed into deciles according to their respective capitalizations, determined by the NYSE breakpoints. CRSP Portfolios 6-10 represent small caps. Standard deviation is a statistical measurement of how far the return of a security (or index) moves above or below its average value. The greater the standard deviation, the riskier an investment is considered to be. Emphasize Small Companies Growth of $1 Jan. 1, 1927 – Dec. 31, 2008 Small company stocks have higher expected returns and risk than larger company stocks U.S. Large Cap Total U.S. Market U.S. Small Cap CRSP Deciles 1-5 Index Fama/French Total CRSP Deciles 6-10 Index U.S. Market Index Annualized Compound Return 9.3% 9.5% 11.1% Annualized Standard Deviation 18.5% 18.7% 27.5% $1,459 $1,694 $5,641
8. Indexes are unmanaged baskets of securities that investors cannot directly invest in. Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1927 and kept invested through December 31, 2008. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Total returns in U.S. dollars. CRSP is the Center for Research in Security Prices. CRSP ranks all NYSE companies by market capitalization and divides them into 10 equally-populated portfolios. AMEX and NASDAQ National Market stocks are then placed into deciles according to their respective capitalizations, determined by the NYSE breakpoints. Value is represented by companies with a book-to-market ratio in the top 30% of all companies. Growth is represented by companies with a book-to-market ratio in the bottom 30% of all companies. The CRSP Value and Growth divisions within the CRSP 1-5 Portfolios are employed to formulate the Fama/French U.S Large Value Index and Fama/French U.S Large Growth Index. Fama/French Total U.S. Market Index provided by Fama/French from Center for Research in Security Prices (CRSP) data. Includes all NYSE securities (plus Amex equivalents since July 1962 and NASDAQ equivalents since 1973), including utilities. Fama/French U.S. Large Growth Index provided by Fama/French from Center for Research in Security Prices (CRSP) data. Includes the upper-half range in market cap and the lower 30% in book-to-market of NYSE securities (plus Amex equivalents since July 1962 and NASDAQ equivalents since 1973), excluding utilities. Fama/French U.S. Large Value Index provided by Fama/French from CRSP data. Includes the upper-half range in market cap and the higher 30% in book-to-market of NYSE securities (plus Amex equivalents since July 1962 and NASDAQ equivalents since 1973), excluding utilities. Standard deviation is a statistical measurement of how far the return of a security (or index) moves above or below its average value. The greater the standard deviation, the riskier an investment is considered to be. “ Value” stocks have higher expected returns and risk than “Growth” stocks Emphasize Value Companies Growth of $1 Jan. 1, 1927 – Dec. 31, 2008 U.S. Large Growth U.S. Total Market U.S. Large Value Fama/French Fama/French Total Fama/French U.S. Large Growth Index U.S. Market Index U.S. Large Value Index Annualized Compound Return 8.6% 9.5% 10.0% Annualized Standard Deviation 19.0% 18.7% 26.1% $891 $1,694 $2,559
9.
10. Highest Return Lowest Return The Need for Diversification Asset Class Index Performance 1987-2007 Diversification does not guarantee a profit or protect against a loss. Data Sources: Center for Research in Security Prices (CRSP), BARRA Inc. and Morgan Stanley Capital International, December 2008. All investments involve risk. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes, and different methods of accounting and financial reporting. Past performance is not indicative of future performance. Treasury bills are guaranteed as to repayment of principal and interest by the U.S. government. This information does not constitute a solicitation for sale of any securities. CRSP is the Center for Research in Security Prices. CRSP ranks all NYSE companies by market capitalization and divides them into 10 equally-populated portfolios. AMEX and NASDAQ National Market stocks are then placed into deciles according to their respective capitalizations, determined by the NYSE breakpoints. CRSP Portfolios 1-5 represent large-cap stocks; Portfolios 6-10 represent small caps; Value is represented by companies with a book-to-market ratio in the top 30% of all companies. Growth is represented by companies with a book-to-market ratio in the bottom 30% of all companies. S&P 500 Index is the Standard & Poor’s 500 Index. The S&P 500 Index measures the performance of large-capitalization U.S. stocks. The S&P 500 is an unmanaged market value-weighted index of 500 stocks that are traded on the NYSE, AMEX and NASDAQ. The weightings make each company’s influence on the index performance directly proportional to that company’s market value. The MSCI EAFE Index (Morgan Stanley Capital International Europe, Australasia, Far East Index) is comprised of over 1,000 companies representing the stock markets of Europe, Australia, New Zealand and the Far East, and is an unmanaged index. EAFE represents non-U.S. large stocks. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes and different methods of accounting and financial reporting. Consumer Price Index (CPI) is a measure of inflation. REITs, represented by the NAREIT Equity REIT Index, is an unmanaged market cap-weighted index comprised of 151 equity REITS. Emerging Markets index represents securities in countries with developing economies and provide potentially high returns. Many Latin American, Eastern European and Asian countries are considered emerging markets. Indexes are unmanaged baskets of securities without the fees and expenses associated with mutual funds and other investments. Investors cannot directly invest in an index. Although indexes do not have fees and expenses, the average operating expense ratio for each category, as contained in Morningstar’s database of mutual funds (as of November 2008), was deducted.
11. U.S. and International Markets Perform Differently Rolling 12-month Variance (Jan 1972 – Dec 2008) International Outperforms U.S. Outperforms Past Performance is not indicative of future results. All investments involve risk. Foreign securities involve additional risks including foreign currency changes, taxes and different accounting and financial reporting methods. International market performance represented by the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australasia, Far East Index), comprised of over 1,000 companies representing the stock markets of Europe, Australia, New Zealand and the Far East, and is an unmanaged index. EAFE represents non-U.S. large stocks. U.S. market performance represented by the Standard & Poor's 500 Index, an unmanaged market value-weighted index of 500 stocks that are traded on the NYSE, AMEX and NASDAQ. The weightings make each company's influence on the index performance directly proportional to that company's market value. Global Market Capitalization Source: Center for Research in Security Prices (CRSP) January, 2009 *Source: Impact of an Aging Population on the Global Economy Jeremy J. Siegel CFA Institute Conference Proceedings Quarterly (09/07 ) 1970 _________________ U.S. 66% International 34% 2007 _________________ U.S. 47% International 53% 2050* (Projected)* _________________ U.S. 17% International 83%
12.
13.
14.
15.
16. The Cycle of Market Emotions Emotion often leads to trying to time markets For Illustration Purposes Only
18. Average stock investor and average bond investor performances were used from a DALBAR study, Quantitative Analysis of Investor Behavior (QAIB), 12/2008. QAIB calculates investor returns as the change in assets after excluding sales, redemptions, and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and any other costs. After calculating investor returns in dollar terms (above), two percentages are calculated: Total investor return rate for the period and annualized investor return rate. Total return rate is determined by calculating the investor return dollars as a percentage of the net of the sales, redemptions, and exchanges for the period. The fact that buy-and-hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future. Stay the Course Average Investor vs. Major Indices 1987 - 2008 11.8% 7.6% 4.5% 3.0% 1.6%
19.
20.
21.
Editor's Notes
Thank you all for being here today. I’ve met many of you already, but for those who may not know me, my name is… [Introduce yourself] I’m so glad you could join us for this presentation on Structured Investing. Structured Investing is more than a style of investing. It is a fundamental way of looking at markets and thinking about economics and human behavior that is grounded in reason and prudence and focused on creating a well-executed plan for your financial future. Before we begin, let me tell you a little bit about myself and my background. [Discuss background] LWI Financial, Inc. (“Loring Ward”). Securities offered through Loring Ward Securities, Inc. (or your advisor’s affiliates) Member FINRA/SIPC #08-143 (06/08)
Above all, Structured Investing is a deliberate and thoughtful investment process designed to help you achieve your lifetime financial goals and focus on what matters most to you, whether it is putting your children through college, philanthropy or a secure retirement. Structured Investing combines extensive research from academics and economists with practical application and experience. It is based on: • 80+ years of financial market data • Nobel Prize-winning economic research • In-depth studies of investor psychology and behavior There are five key concepts that play a vital role in the construction of all Structured Investing portfolios: Accept Market Efficiency Take 3 Risks Worth Taking Effectively Diversify Customize Your Portfolio Exercise Patience & Discipline We’ll look at each of these five concepts in depth, beginning with “Accept Market Efficiency.”
In 1965, University of Chicago economics professor Eugene Fama developed The Efficient Markets Hypothesis, which states that current securities prices rapidly reflect all available information and expectations. Also in 1965, MIT professor Paul Samuelson examined the behavior of securities prices and found that market prices are the best estimates of value and that price changes are random and unpredictable. For this work, Samuelson was awarded the Nobel Prize for Economics in 1970. Fama’s and Samuelson’s theories suggest that active investment management cannot consistently add value through security selection and market timing. In other words: Don’t try to beat the market. Instead…we seek to capture market rates of return by investing in large numbers of stocks in selected asset classes, resulting in portfolios with thousands of stocks. However, unlike index funds, we don’t buy every stock in an asset class. We exclude certain groups of stocks with heightened risk or inefficiency, including new stocks (IPOs), financially distressed and bankrupt companies and illiquid stocks. We also focus on minimizing trading costs. We own representation in the selected asset classes and hold onto them, rather than frequently buying and selling. And, as mentioned, we don’t attempt to track indexes, as this can result in significant trading costs. Finally, our portfolio managers have flexibility on when to add or remove individual stocks from asset classes.
Experience shows that even highly-experienced, highly-compensated mutual fund managers have a hard time beating the market. As you can see, the majority of managers have failed to beat their indices. [Read chart on slide]
Markets can be chaotic, but over time they have shown a strong relationship between risk and reward. This means that the compensation for taking on increased levels of risk is the potential to earn greater returns. According to academic research by Professors Eugene Fama and Ken French, there are three “factors” or sources of potentially higher returns with higher corresponding risks: 1. Invest in Stocks 2. Emphasize Small Companies 3. Emphasize Value Companies Let’s look at each of these factors…
The first factor (or risk worth taking) is investing in stocks instead of bonds. One of the safest places you can put your money is in a short-term Treasury bill. You will receive whatever interest is guaranteed by the particular T-Bill, and it will be backed by the full faith and credit of the U.S. Government. This is often referred to as the risk-free rate. Investing in the stock market is much riskier – there are no government guarantees, no guaranteed returns. Because of this increased risk, theory and common sense suggest that investors should be compensated with the potential for greater reward. While past performance is no guarantee of future results, if you had the foresight and longevity to invest $1 in 1927 in the S&P 500, as shown in this chart, your investment would have grown to $2,676 by 2007. If you’d taken that same $1 and invested in One-Month Treasury Bills, you would have $19. The $2,257 difference between these two investments, is a clear demonstration of the potential power of risk and reward. But risk does mean that there will not always be rewards. As you can see, compared with Treasury Bills, there was substantially more up and down movements (volatility) in the S&P 500, including some severe declines such as the Great Depression. Because of the strong, overall historic performance of stocks, they are the backbone of many portfolios, especially long-term portfolios focused on such important goals as retirement.
Over the last 80+ years, smaller companies have outperformed large companies by 1.5% annually. In dollar terms, over time, this makes for a substantial difference as you can see from this chart. This is the second factor (or risk worth taking). However, as you would expect, this higher long-term return from small cap stocks was accompanied by greater volatility. Small companies are usually defined as domestic and international companies with a market capitalization in the bottom 10% of their countries. Unlike large companies, small companies tend to have shorter track records, tend to be less diversified, focusing on only one or two lines of business, and are covered by only a handful of Wall Street analysts. Small companies may become the large companies of tomorrow – they could also go out of business. All these factors mean that they tend to be riskier investments than large companies. Because of this – they must offer greater potential reward in order to attract investment. As we’ve seen, most investors tend not to take uncompensated risks. Though they are riskier than large companies, investing in a cross-section of small companies in the U.S. and major international markets can help you build a diversified portfolio.
The third and final factor (or risk worth taking) is investing in value companies. Historically, lower-priced value stocks have outperformed higher-priced growth stocks. And small value companies have tended to outperform large value companies. However, investing in value companies may involve greater risk of price fluctuation and potential loss. Value stocks are usually associated with corporations that have experienced slower earnings growth or sales, or have recently experienced business difficulties, causing their stock prices to fall. These value companies are often regarded as turnaround opportunities, where a change in management, strategy or other factors could improve the company’s prospects and its earnings. Historically, the earning streams of value stocks have been much more uncertain than growth stocks. This means the market has to assign them lower prices in order to attract investors. Though they are riskier than growth companies, emphasizing value companies in a portfolio may lead to both increased diversification and the expectation of potentially higher returns. As you can see, historically, large value has grown an average of 11.2% per year, vs. 9.4% annually for large growth.
“ Don’t put all of your eggs in one basket.” As an investor, you may have heard this old saying used to emphasize the need for a diversified portfolio. Though most investors today understand the importance of diversification, University of Chicago professor, Harry Markowitz, won a Nobel Prize in Economics for his groundbreaking work in this area. Though diversification does not guarantee a profit or protect against a loss, a combination of asset classes may reduce your portfolio's sensitivity to market swings because different assets - such as bonds and stocks - will react differently to adverse events. For example, the stock and bond markets tend to move in opposite directions; and even when they move in the same direction, they usually don’t move to the same degree. So if your portfolio is diversified across both markets, downward movements in one may be offset by positive results in another. We believe there are 4 primary ways to diversify your portfolio to decrease volatility: [Read rest of slide]
The world may be unstructured, but investing does not have to be. This chart shows the returns (from highest to lowest) for major asset classes over the last twenty years. It is impossible to find any kind of pattern or trend in these results. One year an asset class is the top performer, the next year it is the worst. Instead of trying to guess which asset classes will and won’t do well, we believe it is important instead to diversify widely across multiple asset classes.
While the U.S. stock market is one of the world’s largest, if you invest only in America, you are only getting half (actually 47% ) of the story. From automobile manufacturers to electronics to pharmaceuticals, some of the biggest companies in the world are headquartered outside the United States. By 2050, experts predict the United States will account for only 17% of global market capitalization. In addition, as you can see on the right, international markets and asset classes within those markets have not—historically—moved in unison with the U.S. market. When the U.S. is underperforming, international may outperform…and vice versa. This means that incorporating both international and domestic equities into a portfolio potentially increases diversification and lowers volatility.
The primary role of bonds in a Structured Investing long-term portfolio is to reduce the portfolio’s volatility. Bonds may also provide a steady flow of income that will generally be higher than the yield from stock dividends. This can be an important consideration for many investors, especially if you are retired. But not all bonds are created equal. As the chart demonstrates, bond investments with maturities longer than five years generally entail more risk than shorter maturity bonds. More troubling, investors are not typically compensated for this additional risk. That is why we recommend, instead, high-quality, short-term fixed income to dampen overall portfolio volatility.
Outlining your goals, identifying your risk tolerance, and setting expectations can help you stay successfully invested through bull and bear markets and strong and weak economic environments. The process we use to help our clients plan for a secure future begins with a discussion of their goals and risk tolerance as well as some of their personal experiences with volatility and how these experiences affected the way they invest? We cover issues such as… [Read rest of slide]
[Read slide]
Investing should be a rational process, but as Nobel-prize winning work by Professor Daniel Kahneman found, the more emotional an event is, such as a strong bear market, the less rational or sensible people tend to be. This is why it is so important to exercise patience and discipline when it comes to your investments. The fact is, most successful investors stay focused on the long term. Trying to time the market can affect your long-term investing success. We will review your portfolio regularly and update you on your progress. We will also make adjustments depending on changes in your life. And we will rebalance your portfolio periodically to help keep it aligned with your goals. Investing can be overwhelming, but you don’t have to go it alone. We can help you stay on track and focused on your long-term goals.
Structured Investing is a deliberate and thoughtful process – but the very nature of markets, their sometimes sharp and erratic movements, can make even the most rational, coolheaded investor panic…or in a strong bull market, give way to irrational exuberance. It is not easy to stay focused on the long-term when the short-term consumes our thoughts and emotions. This cycle of market emotions is probably familiar to anyone who has investments, whether in stocks or real estate or even collectibles. Our emotions lead us to trying to time the market -- buying when markets are doing well, and selling when they are doing poorly. But this can have detrimental consequences, including dramatic underperformance, for a portfolio.
Sometimes, even inaction can work against our best interests. As this chart shows, missing even a few of the best days of the market can have a substantial impact on a portfolio. If you had invested $1,000 in 1970, it would be worth $54,116 in 2007. Missing just five of the best days would have cut your returns by about $14,000 to $40,194. No one knows when those “best days” will happen, yet many people prefer to try and ride out a bear market by pulling out of the market or just staying uninvested on the sidelines. Even if you’d missed just one day – the single best day—between 1970 and 2007, you would have made a $4514 mistake. For a $100,000 portfolio, that mistake grew to $451,400…and again, that was just missing the one best day.
A DALBAR 2007 study found that from 1987 – 2006, the average investor did substantially worse than major indices. In this study, the average investor returns were calculated as the change in assets after excluding sales, redemptions and exchanges during the period. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and any other costs. According to this study, the average equity investor had annual returns of just 4.3% Over the same period, the S&P 500, returned an annual average of 11.8% . This 63% decrease in average annual returns experienced by the average investor is the cost of not exercising patience and discipline. Even in fixed income, investors made expensive mistakes. While the Long-Term Government Bond Index returned 8.6% over this period, the average fixed income investor had an annual return of 1.7%, underperforming even inflation. It is important to note that the fact that buy-and-hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future.
Rebalancing is an important step that many people neglect when they try to manage their own investments. It helps ensures that your portfolio remains aligned with your goals, risk tolerance and time horizon Because of the movements in markets, your portfolio will also tend to change or “drift” over time and move away from your original asset allocation – unless it is rebalanced. For example, as this illustration shows, if you had started in 1986 with a portfolio that was 50% stocks and 50% bonds…and done nothing, twenty one years later in 2007, this same portfolio would be 72% stocks and only 28% bonds. In other words, your moderate portfolio was now an aggressive one.
Your life and your goals don’t stand still; that why it is critical to work with a financial advisor who regularly monitors your portfolio. [Read slide]
For many of us, our portfolios are tied to our most deeply held goals and dreams. That is why it is important to be deliberate and thoughtful when making investment decisions. As an independent Financial Advisor… [Read slide] Ultimately, the success of your portfolio is measured by whether or not it helps you accomplish your objectives. With our Structured Investing approach, the noise and confusion of the markets can be subdued by simplicity, prudence and confidence as you build a strong investment foundation for your future Thank you so much for joining us today. We have a couple of minutes left, and I’d be happy to answer a couple of questions.