The content of this book has become ever more relevant after the recent 2007–2009 and 2011 financial
crises, one consequence of which was greatly increased scepticism among investment professionals about
the received wisdom drawn from standard finance, modern portfolio theory and its later developments.
In spite of the limited evidence about the behaviour of mutual funds in emerging
markets, mutual fund investment in these areas has grown markedly over the past decade at a
quicker pace than even the developed markets have shown. The growth in mutual fund
investment is influential because it shapes the future development in the securities market and
has important policy implications. The high proportion of institutional investors creates more
timely information and therefore makes the market more efficient.
The development of the LPT market is slower compared to overseas REITs. For
example, while Malaysia launched its first LPT in 1989, REITs in Japan (introduced in 2000)
now amount to 12 listed JREITs with approximately US$11 billion market capitalization
(European Public Real Estate Association, 2004).
Despite its rapid development, market segmentation has been a distinctive feature of
China's stock market. On the SHSE and SZSE, two types of stocks, A shares and B
shares, are traded. Denominated in RMB, A shares are available exclusively to domestic
investors. From 1991 onwards, Chinese rms have been allowed to issue B shares to
foreign investors. These B shares are denominated in US dollars on the SHSE and in HK
dollars on the SZSE. Prior to February 2001, their trading was restricted exclusively to
overseas investors, including overseas Chinese residing in Hong Kong, Macao and Taiwan....
The shift of retirement funding from professionally managed DB plans to
personal savings vehicles implies that investors need to make their own decisions
about how to allocate retirement savings and what products should be used to
generate income in retirement. This shift naturally creates a huge demand for
professional investment advice throughout the investor’s life cycle (in both the
accumulation stage and the retirement stage).
This financial advice must obviously focus on more than simply traditional
All forward-looking statements contained herein speak only to the facts and circumstances existing as of the date of this
presentation. Except as required by applicable law, the Company does not undertake and expressly disclaims any
obligation to update or revise any forward-looking statements, estimates, projections, dates, or risks, whether as a
result of new information, future events, changed circumstances, or otherwise.
The decision to increase the role of stock market was taken, as a part of the
‘shock therapy’, without adequate preparation or understanding of the behaviour of
the financial sector and of the major players -- intermediaries, promoters, investors
and the regulators – in a country like India, and even ignoring the experience of the
1980s when initially the stock market was given a major push. The gates were
thrown wide open as it were.
Taxes can affect investment not only through the income and substitution effects related to
saving, but also through a risk-taking effect. The capital gains tax rate has been singled out as
being important to investment. For risk-averse investors, the capital gains tax could act as
insurance for risky investments by reducing the losses as well as the gains—it decreases the
variability of investment returns.
Consequently, a rise in the capital gains top rate could increase
investment because of reduced risk.
Options can either increase or decrease a security’s potential for price
changes, depending upon the type of option and who owns it. A call option allows the issuer of
the security to redeem the full amount of the obligation before its maturity date. Investors have
sold, or are “short,” the option on a callable bond. In return for allowing the issuer to call a bond
prior to maturity, investors receive a higher yield.
It is helpful to consider securities with call options in two groups: amortizing and non-amortizing
or “bullet” securities. An amortizing...
The Credit Register information used here is based exclusively at the transaction or
loan level, not at the level of borrowers. A given borrower may enter into several loans with the
same bank or with different banks. As some characteristics of the loans cannot readily be
aggregated for a given borrower (collateral, maturity, type of instrument), in order to
distinguish their impact it is essential to perform the analysis at the level of each loan.
Stability Bonds would make the euro-area financial system more resilient to future
adverse shocks and so reinforce financial stability. Stability Bonds would provide all
participating Member States with more secure access to refinancing, preventing a sudden loss
of market access due to unwarranted risk aversion and/or herd behaviour among investors.
Accordingly, Stability Bonds would help to smooth market volatility and reduce or eliminate
the need for costly support and rescue measures for Member States temporarily excluded from
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).