Asset allocation investigates the optimal division of a portfolio among different asset
classes. Standard theory involves the optimal mix of risky stocks, bonds, and cash
together with various subdivisions of these asset classes. Underlying this is the insight
that diversification allows for achieving a balance between risk and return: by using
different types of investment, losses may be limited and returns are made less volatile
without losing too much potential gain.
CFA Level 1 Schweser Notes 2014 - Book 5 Fixed Income, Derivatives, and Alternative Investments. The following material is a review of the Fixed Income, Derivatives, and Alternative Investments principles designed to address the learning outcome statements set forth by CFA institute.
There is a Wall of Silence separating you from some of the best performing investments in the world today.
Some of these investments are hidden from you because of obsolete regulations and others purely out of
ignorance (since most brokers are primarily salesmen, not true investment analysts). Even more are kept from
you for the purpose of protecting the self interests of Wall Street.
This virtual information blackout on these top-performing alternative investments could be costing you a
As you’ll learn in this report…
Although the triggering market events occurred over the two years at the beginning of our review period,
direct support continued in later years as well. In some of these instances, fund sponsors delayed direct
support by putting in place multi-year guarantees.
Investment in macro economics, only the increase of capital to increase future production capacity. Investment, therefore, also known as form of capital or capital accumulation. However, only increased from the increase of material production capacity will be counted. Also increased capital in financial and monetary sector and real estate business is excluded. The growth of private capital (up production equipment) are called private investment
Who wants to be an average investor? We all dream of beating the market
and being super investors, and we spend an inordinate amount of time
and resources in this endeavor. Consequently, we are easy prey for the magic
bullets and the secret formulas offered by salespeople pushing their wares.
In spite of our best efforts, though, most of us fail in our attempts to be
more than average. Nonetheless, we keep trying, hoping that we can be
more like the investing legends—another Warren Buffett, George Soros, or
Even if socially responsible investment does not impose a cost on SRI fund investors in terms of
reduced before-fee financial performance, these investors could still pay an explicit price for
their funds' social responsibility in the form of higher fees. Indeed, there are reasons to expect
fees charged by SRI funds to be higher. First, some SRI funds actively engage with the firms in
which they invest to encourage them to pursue socially responsible policies. The costs of such
active monitoring may be partly passed on to investors in the form of higher expenses.
Bond Funds, which account for €320.7 billion of shares/units in issue, and are therefore the
largest fund category, experienced minor positive revaluations of €1.7 billion, but mostly
benefitted from increased confidence in bonds by recording significant new investment of
€12 billion, the highest relative inflow of any category.
Hedge Funds, which account for €73.2 billion of shares/units in issue, also benefitted from
positive revaluations and net inflows. Revaluations at €3 billion, or 4.
Several filers cited subjects for providing misleading information about real estate
securities or securitized commercial mortgages. One filer cited a former Chief
Executive Officer (CEO) for failing to disclose investment risks in certain CDOs,
CMOs and trust preferred securities. The CEO had managed the investment
portfolio, supposedly with a “very high” rate of return, and received large bonus
payments. Later, the filer determined the CEO had misled bank management about
The objective of the research study and this publication is to identify, characterize and
assess the existence and potential of investments in agriculture and agribusinesses in developing
and transition economies through an inventory stock-taking of agricultural investment funds
targeting these countries. The stock-taking is followed by a more comprehensive review of
selected investment funds through case studies.
One key distinction is that business angels invest their own funds, unlike VC funds, who primarily
invest funds committed by others (e.g. institutional investors). For this reason they typically invest in
companies with which they can maintain close contacts (OECD, 2006).
Furthermore, typically companies that receive BA financing are smaller (i.e. in terms of turnover –
see also table 1 later in this text) than VC backed companies. Most of the companies that receive
BA financing, do not receive VC financing at the same time.
ESMA’s focus in 2013 in the investment funds area will be divided between the finalisation of the key elements of the Alternative Investment Fund Managers Directive (AIFMD) framework, leading up to the transposition deadline of July 2013, and work in the area of UCITS. This area will also be supplemented by activity with respect to the Regulations on Venture Capital (VC) and Social Entrepreneurship Funds (SEFs).
The Communication highlighted the role played by microfinance institutions/micro-credit providers
in developing the provision of micro-credit in Europe and stressed that adequate technical support
is necessary to help these operators release their potential.
The ideal experiment to evaluate the impact of socially responsible investing on performance
and fees would be to observe the same funds both with and without the SRI constraint. Most
previous studies (Gregory et al., 1997; Statman, 2000; Kreander et al., 2005; Bauer et al., 2005)
approximate the ideal experiment by comparing the performance of SRI funds to that of a
control group of comparable conventional funds, a methodology that is known as matched-pair
Exploring macro view on mutual fund growth as deposit substitution or as an alternative
investment, information on deposit amount and deposit rates are drawn from Bank of Thailand website.
Assessing growth determinants based on market benchmark, Stock market index is obtained from
Stock Exchange of Thailand. Superior fund performance due to outstanding securities selection skills
of fund managers come with higher price or higher management fees (Nazir and Nawaz (2010),
Livingston and O’Neal (1998), and O’Neal (1999)).
Directive also covers new issues such as the passport for third-country managers that have so far never been in the scope of CESR/ESMA’s work. In this context, the process should be seen as still very much open ended and thus as an opportunity for the alternative investment industry to fully engage with ESMA and the European Commission so as to translate the current framework into sensible and appropriate measures whenever possible.
Nearly 40 implementing measures, technical standards and guidelines concern third-country AIFs or AIFMs.
In the medium term, Zimbabwe’s prospects and performance will be largely
determined by political developments and key reforms aimed at improving the
investment climate especially in the areas of the property rights, indigenization, and
land reform, which make up the risks to the outlook. In addition, the speed and
determination with which the Government addresses the issue of external indebtedness will
be vital, as this will unlock critical resources required for investment in the various sectors of
the economy and in infrastructure in particular....
Because of the special risks associated with investing in Emerging Markets, sub-funds which invest in such securities should be
considered speculative. Investors in such sub-funds are advised to consider carefully the special risks of investing in emerging market
The Central Bank today publishes statistics for Q1 2012 on investment funds (IFs) resident in
Ireland. Irish resident IFs expanded strongly in Q1 2012, driven by performing global equity
markets and apparent expanding investor confidence evident in new subscriptions. When
reclassifications are excluded, IFs, measured by total shares/units in issue, increased in value
to €819.8 billion at end Q1 2012, up from €768.7 billion at end Q4 2011. This increase is
accounted for by revaluations of €34.9 billion and positive net transactions of €16.2 billion. ...
There is one reported proposed entry – of
Schroder Investment Management through
the acquisition of a significant minority stake
in an existing AMCor trust company and also
one reported proposed exit, viz. Fidelity
This growth serves to demonstrate that,
at a fundamental level, there are many
significant global and local players that
consider the Indian mutual fund industry
to be attractive. It is necessary to
understand the mix of investors, distributors,
types and number of schemes as factors that
contribute to a sustainable and profitable