.“This book develops the conceptual foundations required for the analysis of markets with asymmetric information, and uses them to provide a clear survey and synthesis of the theoretical literature on bubbles, market microstructure, crashes, and herding in ﬁnancial markets. The book is not only useful to the beginner who requires a guide through the rapidly developing literature, but provides insight and perspective that the expert will also appreciate.
This chapter discusses the various forms of return encountered in investment management. Among the return types discussed are required returns, which will be used later in the text for equity valuation. The required return is what the investor expects to earn on an investment, given the investment’s risk. To determine the required return, we will use several different models, such as the capital asset pricing model (CAPM).
IAS 36 Impairment of Assets was issued by the International Accounting Standards Committee in June 1998. It replaced requirements for assessing the recoverability of an asset and recognising impairment losses that were included in IAS 16 Property, Plant and Equipment, IAS 22 Business Combinations, IAS 28 Accounting for Investments in Associates and IAS 31 Financial Reporting of Interests in Joint Ventures. Limited amendments were made in 1999, 2000 and January 2001.
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IFRIC 14 IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in July 2007.
In the last decade rating-based models have become very popular in credit risk management. These systems use the rating of a company as the decisive variable to evaluate the default risk of a bond or loan. The popularity is due to the straightforwardness of the approach, and to the upcoming new capital accord (Basel II), which allows banks to base their capital requirements on internal as well as external rating systems.
This book is intended as a practical guide to the interpretation
of reports and accounts. In it frequent reference is
made to the legal, accounting and UK Listing Authority’s
requirements that accounts have to meet, but this is done
in the context of what interesting information to look out
for, rather than to show how a set of accounts should be
The King is dead; long live the King! That famous cry sums up most aspects of modern
business practice. The previously existing competitive environment, scope, internal
structures, and automation support needs of an enterprise have disappeared and been
replaced by other sets of conditions and requirements. In time, those needs, too, will
disappear and be replaced by yet another set and much more quickly than before. The
concept of “Internet years” applies to most aspects of modern life.
The main regulatory changes made during 2010 where in New Zealand, Chile, Hungary and Turkey.
With regards to New Zealand, responses contained in Tables 1 and 4 have been modified to reflect the
requirement of a restriction on the amount of Growth Assets being not less than 15% or more than 25% of
the default allocated members assets in growth assets for the KiwiSaver
In Chile, the Investment Regime changed the definition of hedging in January 2010. Until 2009, the
hedging was made in relation to the denomination currency of mutual funds and investment funds.
In addition, the modified IA report contains a clearer description of the key features that
distinguish a social investment funds from the wider category of alternative investment funds.
In line with the IABs request, the report clarifies that the essential features of a social
investment fund are linked to the social undertakings it targets, the composition of its
portfolio (at least 70% of investor capital invested in qualifying target undertakings) and the
investment tools it employs (equity, quasi-equity, debt instruments but no leverage).
Analyzing monthly return data on more than 2500 unique U.S. equity
funds over the period 1984–2003, we show that the average return gap is
close to zero. In particular, the equally weighted return gap for all mutual
funds in our sample equals 1.1 basis points per month, while the value-
weighted return gap equals −1.0 basis points per month. These results
indicate that the magnitude of unobserved actions is relatively small in the
aggregate. Thus, fund managers’ trades in the aggregate create sufﬁcient
value to offset trading costs and other hidden costs of fund management.
Thus, the study of mutual funds in emerging markets is overdue for those who need a
fuller understanding of their investment conditions. In addition, this would allow an out-of-
sample test to challenge existing asset pricing models and lead to the development of new
This study seeks to shed light on mutual fund investment in emerging markets and
specifically focuses on three issues: performance, determinants of performance and the role
of liquidity on performance and performance measure.
We now turn to the potential benefits of having a more accurate estimate of Chemical
A's true cost. As described above, this requires knowledge of the firm's ability to change its
actions in response to better information. If the disposal cost X of Chemical A is revealed to
be significant, how might the firm respond? This is a question that hinges primarily on the
firm's technological options and the availability of substitute inputs. Substitutes can take a
variety of forms.
The topic of “risk” and what financial services firms are doing to manage or oversee risk has
received heightened attention in recent years. The market events of 2007–2009 prompted many
firms to take a fresh look at their practices and resources and to incorporate any lessons learned
from their own or others’ experience. The Securities and Exchange Commission (SEC) has also
focused attention on risk oversight practices by requiring companies, including funds, to disclose
the board’s risk oversight role.
As reported in the financial statements of each AMC, fund expenses can be divided into
management fees and administrative fees. Expense ratio is the ratio between total fund expenses to
fund’s assets. Administrative or operating expense excluded management fees of AMCs managing
large number of funds are considered to be constant. Thus, when management fee is excluded, fund
expense ratio is lower. Fund expenses excluded management fees indicate fund operation efficiency.
Management fees measures security selection skills of fund manager.
Traditionally, large distribution networks
were developed by the Life Insurance
Corporation of India and the Unit Trust of
India for their own products. The LIC model
involved engaging deeply with distributors
and agents, by educating and equipping
them to sell. Agents were well-compensated
and penetration was deep. In return, the
agents worked exclusively with LIC and did
not sell other products.
Unlike this, the mutual fund distribution
network evolved in an open architecture
Glossary Required in the Statement of Operations (q.v.) by the Health Care Guide.
reporting is done. Opinion units are (1) governmental activities (q.v.), (2) business-type activities (q.v.), (3) each major governmental and enterprise fund (q.v.), (4) the aggregate of all discretely presented component units (q.v.), and (5) the aggregate of all remaining fund information.
other financing sources Operating statement
permanent fund Governmental fund that is restricted so that only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry.
Poverty reduction has two fundamental requirements: enabling the poor
and marginal groups to participate in decisionmaking about their own
development, and giving them access to capital, technology, credit, and
land, especially in the case of the rural poor. Programs to deliver these
basics must be designed with accuracy and sophistication within a frame-
work of macroeconomic social policies whose main objective is poverty
The relationship between household banking status and
AFS use is complex. A non-trivial share of unbanked
households (29.5 percent) do not use any of the AFS
providers asked about in the survey, suggesting they rely
primarily on cash. However, overall, unbanked households
are more active AFS users than underbanked households.
Unbanked households are more likely to use multiple
products and to have used AFS, particularly transaction
products, more recently and more frequently than under-
Competitiveness today must be geared to competitiveness tomorrow. There is untapped
potential for the EU economy to be more innovative, productive and competitive whilst using
fewer resources and reducing environmental damage. Less waste should be produced and
more re-used and recycled in line with the practice of the best performing Member States.
About Ernst & Young’s Global Asset Management Center
The asset management industry is evolving at a deceptively fast pace. Asset managers and service providers face challenges every single day whether it’s managing business growth, mitigating risk, providing transparency or embracing regulatory scrutiny. Ernst & Young’s Global Asset Management Center brings together a worldwide team of professionals to help you achieve your potential — a team with deep technical experience in providing assurance, tax, transaction and advisory services.