The SEC established these requirements to protect the average investor from
some of the worst and most risky investments in the world. The problem is, these
investor requirements also shield the average investor from some of the best
investments in the world, which is one reason why rich dad’s advice to the average
investor was, “Don’t be average.”
Our empirical results are based on monthly returns of 1,472 U.S. open-end, domestic
equity mutual funds existing at any time between 1975 and 2002. We investigate
the performance of the entire cross-section of mutual funds, as well as the cross-section
of each of three investment-objective categories, growth, aggressive-growth, and growth
We first show that the impact of luck on performance is substantial.
Smaller markets are faring better for a couple reasons. They were spared the fierce
price wars which undercut big markets over the last two decades, as big radio groups
battled for market share in major metro areas. In addition, small market stations often
have closer relationships with local advertisers that tend to be more conservative in their
media strategies. Aside from small markets, online is one of the few bright spots for
radio, although its contribution to total revenue remains relatively small.
Institutional investors are, by some margin, the
most important category of investor to quoted
companies owing to the sheer weight of assets
that they manage and the degree to which they can
invest. It is widely acknowledged that institutional
investors own the vast majority of the UK equity
market. In some cases, institutional investors may
also own nearly all of a company’s issued share
Sovereign wealth funds are another sub category of
institutional investor that have risen in importance in
recent years. As their names suggest they are
institutions constituted to manage national wealth,
the source of which typically arises from significant
The increasing globalisation of financial markets led companies in many countries to apply
from 2005 the IFRS principles. The main goal of IFRS is to safeguard investors by achieving
uniformity and transparency in the accounting principles. One of the most challenging aspects
of the IFRS rules is the accounting treatment of derivatives, a challenge that has strengthened
the relationship between risk management and accounting.
To better understand the sources of outperformance, we undertake an attribution analysis
that decomposes investor returns into that from (1) the selection of Pan-European funds, (2) the
selection of country funds, (3) the selection of sector funds, and (4) the timing of country weights
implied by the selection of country funds. This analysis shows that the superior returns associated
with the macroeconomic-driven strategies arise from the last three sources of performance, and
not from choosing Pan-European 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).
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc. --- with the objective of making a profit. Inviduals Organizations: Financial entities including Brokerages, Banks, Funds…
Throughout Europe, savings banks share common values, such as local ties, a positive attitude
to all customers not excluding certain categories of clients, together with a socially responsi-
ble behaviour. Savings banks therefore embody a “stakeholder” model, seeking to bring value
and return to the whole community of stakeholders, which surround them (investors, suppli-
ers, customers, employees and the local community in which they operate).
A number of governments have issued bonds to raise capital among
their diasporas. Israel has issued diaspora bonds annually since 1951
through the Development Corporation to raise long-term infrastructure
investment capital. Egypt reportedly issued bonds to Egyptian workers in
the Middle East in the late 1970s. India issued diaspora bonds in 1991,
1998, and 2000 to avoid balance-of-payments crises and to shore up
international confidence in India’s financial system during times of financial
sanctions or special needs.
Special category deposit accounts, diaspora bonds, the securitization
of future remittances, and transnational loans are among the financial
instruments whose potential have yet to be fully exploited. Multilateral
institutions as well as public and private institutions can help developing
countries improve their banking sector and raise credit ratings. One of the
fundamental challenges for many countries that lack foreign investment
is the perception of economic, political, or social risk among the diaspora
and general investors.
Brian's Book Barn will concentrate its efforts on the buyers of "Pleasure" category books as
discussed earlier. The educational category is not a target market as area schools order their
textbooks and reading material through the Ministry of Education in Victoria. Other educational books
are also available through satellite campuses of Northern Lights College and the University of
Northern British Columbia. In the professional category, there is simply not enough demand in the
area to stock these kinds of titles.
CHAPTER 7 Profiting from the Corporate Life Cycle.
This chapter will help investors understand the two most common event-driven hedge fund strategies, risk arbitrage, and distressed securities investing. The event-driven category is defined as strategies that seek to profit principally from the occurrence of some of the typical events that occur in a corporate life cycle
The description of a trading security includes both debt and marketable equity securities bought and held
primarily to be sold in the near term. Trading activities typically involve active and frequent buying and
selling to generate profits on short-term movements in market prices or spreads. ASC 320 does not
specify how long securities in this category can be held, because the length of time will vary between
investors and the nature of the securities.
In the United States, insurance regulators require bonds and preferred stocks to be reported
in statutory financial statements in one of six National Association of Insurance
Commissioners (NAIC) designations categories that denote credit quality. If an accepted
rating organisation (ARO) has rated the security, the security is not required to be filed with
the NAIC’s Securities Valuation Office (SVO). Rather, the ARO rating is used to map the
security to one of the six NAIC designation categories.
Identification is further complicated by the fact that some individuals who identify themselves as
‘virgin’ angels, i.e. looking to make their first investment, may never do so. Furthermore, some
individuals may have acted as angels but are no longer actively looking to invest; counting either
of these categories as active angels risks exaggerating the true number.
The Overseas Development Institute has also looked at such risk mitigation mechanisms.
to the above, they highlight the use of pledge funds, whereby by public finance sponsors provide a small
amount of equity to encourage larger pledges from private investors
There has been increasing interest in exploring fi nancial instruments that could limit the cyclical
vulnerabilities of developing countries and reduce the likelihood of defaults and debt crises. GDPindexed
bonds fall into this category and may also generate a wider range of benefi ts for issuer
countries, investors and the global fi nancial system. The authors also examine the concerns and
obstacles relating to the introduction of this instrument, suggesting that some may be exaggerated
while others could be overcome.