...Excellence, Professionalism, Integrity, Commitment You are the centre of everything we do We are committed to listening, understanding, and determining your investment needs, objectives, preferences, constraints and risk tolerance; together with a thorough analysis of the economy, we seek to give you the most up-to-date and personalised solutions to achieve your goals and objectives. Mr. Susilo Hatono Your Team of Trusted Specialists Steffi Tedjo Relationship Manager Teo Shih Jie Economist Benjamin Chong Portfolio Manager Lim Chang Tat Equity Product Specialist Cheryl Ong Fixed Income Product Specialist Natasha Wan Alternative Product Specialist 2 1 11/4/2011 Agenda for today’s meeting INTRODUCTION INTRODUCTION + + MACROMACROECONOMIC ECONOMIC OUTLOOK OUTLOOK REVIEW OF MACROREVIEW OF INVESTMENT ECONOMIC INVESTMENT OBJECTIVES OUTLOOK OBJECTIVES - Updated investment - Updated objectives investment objectives current - Review of investments - Review of current investments - Overview of Portfolio PROPOSED PROPOSED ASSET ASSET ALLOCATION ALLOCATION Equities Equities Fixed Income Fixed Income Alternative Alternative Investments Investments - Recap of Portfolio POTENTIAL POTENTIAL CONSIDERACONSIDERATIONS TIONS + + CONCLUSION CONCLUSION 3 Macroeconomic Outlook The Current Investment Environment 4 2 11/4/2011 Global Financial Markets Will there be another global economic downturn? Emerging Markets US Economy Eurozone...
Words: 4279 - Pages: 18
...Yutong Liu (20344878), An Li Xu (20341923), Jeffrey Wang (20342506) Subject: New Earth’s South Africa Iron Ore Investment Analysis ______________________________________________________________________________ New Earth Mining Inc. (“New Earth”) has substantial investments in the precious metals industry, specifically gold, but is facing volatile gold prices that may not be sustainable in the future. In response to this threat, New Earth should consider opportunities to diversify its business through exploration activities for other minerals. Attractive Investment for New Earth New Earth should take the opportunity to invest in the iron ore deposits in South Africa due to the following reasons: 1) It is a stable investment with long-term prospects of 15 years and a floor price of $80 per metric ton, and 2) The NPV of the project is $181.75 million, thus providing enough cash flows to cover debt and provide dividends to shareholders. Stable Iron Ore Investment The iron ore investment satisfies New Earth’s desire to diversify its business from precious metals with this potential investment life of 15 years. Prices are expected to stay over $80 per ton, with ore prices having reached a high of over $100 per metric ton in 2012. Production costs are expected to be low due to the easy access to ports from the mine location, reducing the need for infrastructure investment to support the development of the mine. Crude steel production in three Asian countries (i.e. China, South Korea...
Words: 1546 - Pages: 7
...China’s Banking Sector The Chinese banking sector was almost completely owned by the government and it was isolated from the global economy. Chinese banks were subject to the requirements of their government’s central intended economic policy. Since 1978, the Chinese government has focused on creating a banking system with different types of institutions and agencies that function in diverse markets with clearly stipulated functions. One of the main objectives of the Chinese banking reforms has been to give incentives to the financial institutions to become more aggressive, commercial entities. Such strategy has limited the competition between such institutions and only affects the agencies that perform similar tasks. However, banks in China have not been allowed complete autonomy, and are expected to comply with government directives that who often place strategies to be used by banks to improve their profitability and their solvency. Different classes of banks are currently operating in China, with different structures and serving different functions. First, the wholly state owned banks. Second, “equitized” commercial banks or banks that were wholly state-owned and were turned into join stock firms in which the government is the major stockholder. Third, includes a mixture of local banks, with municipal governments as principal stockholders. Forth, join-stock commercial banks that were founded after the beginning of the China’s banking reforms and with relatively low...
Words: 3656 - Pages: 15
...Chapter 1 Financial Markets Financial markets perform two important functions. They transfer funds from savers into investments and they transfer title of ownership of existing securities from sellers to buyers. Financial markets and the transfer of savings Two basic methods exist for transferring funds from savers to users. First is direct investment when you start own business and invest your savings in the operation. A direct investment also occurs when securities are initially sold to investors in primary market. In the second markets, no funds are transferred and no new assets are created, there is only the transfer of ownership of an existing asset. The alternative to direct transfer of savings is an indirect transfer through a financial intermediary. You lend funds to the bank; the bank lends the funds to the ultimate borrower. The role of money Money: anything that is generally accepted as a means of payment. Liquidity: Ease of converting an asset into cash without loss, the depth of a financial market. Federal Reserve has the power to control the supply of money and to oversee the commercial banking system. Money supply: Total amount of money in circulation. 2 measures: M1: Sum of coins, currency, and demand deposits (checking account); M2: M1+saving accounts (70%), small certificates of deposits. The role of interest rates Interest is the cost of credit, the price paid for the use of someone else’s money. Generally, the longer the term of the debt...
Words: 5018 - Pages: 21
...2013 Markets showed moderate gains in March Last week’s Highlights Cyprus and the Troika reached a basic agreement on Cypriot financial support last week which was approved by Eurozone finance ministers. • Cyprus is to receive €10bn financial assistance. • In exchange, Cyprus agreed to resolve the Popular Bank of Cyprus (Laiki), merging its “good” assets and insured depositors into Bank of Cyprus. • With the exception of insured deposits (below €100k) in both banks which will be safeguarded, all bond holders, equity shareholders and uninsured deposits in Laiki will be fully bailed in. Uninsured deposits in Bank of Cyprus will be converted into equity and suffer losses until the bank capital ratio reaches to 9%. Performance Global equity markets went up by 1.59% in March. Japan continues to be the best performing market with the Nikkei and Topix showing a monthly return of 7.25% and 6.05% respectively. US stocks had a positive month, with the benchmark S&P 500 posting a 3.6% gain while breaching its all time high level. Europe also rose with the Stoxx Europe 600 up 1.32%. Meanwhile, Asia was weak, with MSCI Asia ex Japan retreating 2.07%. The dips mostly came from Chinese equities with HSCEI and Shanghai Composite down -4.73% and -5.45% and Hong Kong (-3.13%). The Week Ahead The US will see the Vehicle sales (Tue), Factory orders (Tue), Manufacturing index (Wed), Unemployment rate and Nonfarm payrolls (both on Fri), ISM non Consumer credit (Fri) and Trade balance data (Fri) this...
Words: 5171 - Pages: 21
...alternative to western banking, starting in the 1970’s. It is based on Shariah, the fundamental Islam religion. This is a socially responsible way to do banking and allows religion to guide decisions. Interest based transactions are not allowed because they violate Islamic law (Varriale, 2014). Instead, they share profits and losses with the lenders and borrowers of the banks. A few concepts, musharaka, murabaha, and mudaraba, are used in place of interest. Musharaka is when a borrower repays their loan through principal payments and a predetermined percentage of profits. Mudaraba is when a borrower agrees to pay the bank a handling fee if the investment is successful (R.J.C. and A.O.S., 2009). Murabaha is when the bank buys an asset for a customer and then sells it to them on a deferred basis, avoiding an interest-bearing loan. They also offer leasing agreements (R.J.C. and A.O.S., 2009). Islamic banking also requires tangible assets to back up the financial products. This is a much more conservative approach than western banking. Nevertheless, it helped them recover after the financial crisis better than the western banks. Highly risky practices are also banned in Islamic banking, such as short selling, currency hedging, and commodity futures (R.J.C. and A.O.S., 2009). Islamic bonds, sukuk, are a cornerstone of Islamic banking. These also have to be backed by physical assets because you...
Words: 1381 - Pages: 6
...trading and investment partner in many African states, and for decades it has been one of Africa’s best friends, helping in the decolonization process and building key infrastructure projects on the continent. China has been providing many African governments with cheap loans in exchange for securing their means of accumulating natural resources based on the principle of non-intervention and respect for sovereignty, which gives no strings attached. For more than a decade, diplomatic relations between China and South Africa have been marked a great growing relationship between both states. From a period of no official ties to limited interaction between the South African and Chinese Governments, the relationship has subsequently developed to become one of the closest between African and Asian states. Growing economic engagement, which underpins the warm ties between the two states, has put South Africa amongst China’s top three trading partners on the continent. Moreover, China is an emerging market economy; with a fast track of being the next economic rising superpower in the world and its current relations between it and Africa continue to grow fast with foreign direct investment increasing thirty-fold between 2003 and 2011, from US$491m to US$14.7 billion. In 2012, China pledged US$20 billion of loans to Africa over three years for infrastructure, agriculture and manufacturing. If the funds are stay the way they are and do not decline, China will become Africa’s principal financial...
Words: 8475 - Pages: 34
...Lock in your investments at current yield Must have Mirae Asset Fixed Maturity Plan - Series - II (Close Ended Income Scheme - 391 days) Fund Speak March 2014 Mirae Asset India Opportunities Fund (An open ended equity oriented scheme) This product is suitable for investors who are seeking* l long-term capital appreciation l Investments in equities, equity related securities l High Risk (BROWN) (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk *Investors should consult their financial advisers if they are not clear about the suitability of the product. Factsheet data as on 28th February, 2014 Style Box * Style Large Mid Small Blend Value Marketcap Growth Portfolio Top 10 Holdings Equity Shares Infosys Ltd ICICI Bank Ltd HDFC Bank Ltd ITC Ltd Housing Development Finance Corporation Ltd Tata Consultancy Services Ltd Reliance Industries Ltd Divis Laboratories Ltd Bharti Airtel Ltd Larsen & Toubro Ltd Other Equities Equity Holding Total Cash & Other Receivables Total Dividend History - Regular Plan Record Date 27-Jan-14 14-Mar-13 22-Mar-12 10-Dec-10 09-Sep-09 % allocation 8.23% 6.39% 5.03% 4.94% 4.19% 3.75% 3.51% 3.23% 2.88% 2.77% 51.36% 96.29% 3.71% 100.00% Key Information Fund Managers & Experience : Neelesh Surana: 17 years of experience in Financial Services including Fund Management...
Words: 10905 - Pages: 44
...Foreign 99 Chapter III Direct investment by China in Latin America and the Caribbean A. Introduction Since 2008, China has become one of the world’s largest sources of direct investment. These flows first reached significant levels in Latin America in 2010, when it is estimated they surpassed US$ 15 billion. Chinese companies have in fact burst on the scene in the region so recently that several of the biggest projects were still being finalized in early 2011, or had only just been put into operation. Most investments have been made in natural resource extraction, but over the medium term this is expected to diversify into other sectors such as manufacturing and infrastructure construction. Paradoxically, there is a lack of data on this extremely important phenomenon, which poses a constant problem for policymakers and analysts studying Chinese foreign direct investment (FDI). Appraisals of the possible opportunities and challenges presented by this increased investment flow therefore tend to lack supporting empirical evidence. The aim of this chapter is to make some progress on this issue, at least as far as investment in the region is concerned. A variety of sources have been consulted, including investment announcements in the media and interviews with Chinese company managers and Latin American and Caribbean government authorities. Despite the evident limitations of this kind of material in terms of data quality and reliability, this course of action does provide...
Words: 20527 - Pages: 83
...Michele Geraci Analysis of Boeing Investment Plan Yuliana Tan Student ID: 6519982 Word Count: 2,220 (exc. Table of Contents, Tables, Charts & References) Executive Summary This paper discusses whether The Boeing Company should build a plant specializing in producing aircraft 787 in China. Having analyzed the project from a purely financial view, through the calculation of NPV, IRR, Profitability Index (PI) and Payback Period for 30 years, it is recommended that The Boeing Company do so. The project is assumed to start in 2016, with 2 years construction and sales beginning in 2018. The calculations are made on the assumption that all 787planes will be solely produced in China's plant with other plants ceasing the production of this model once China plant has been set up and sales start in 2018. With an initial investment of USD 6.5 Billion, The Boeing Company will be financing the project with 80% debts and 20% equities. Further assumption is made on the source of the capital. Equity will be gained by issuing stocks on the NYSE, hence, the calculation of the project is in USD; the cost of debt, in this case, follows the US lending rate (3.5%) assuming Boeing borrows from the American Bank with a constant rate. The plant will be located in Chong Qing province, specifically Jiangbei district. The reason for this is that Chong Qing is the fourth major municipal in China and since the government is developing the western region, foreign investment companies receive tax incentives...
Words: 3373 - Pages: 14
...sciedu.ca/rwe Research in World Economy Vol. 2, No. 2; October 2011 An Analysis of Emerging China’s Economy and its Influence on World Economy Zhijun Sheng (Corresponding author) School of Economics and Management, Changchun University of Science and Technology Changchun 130022, China Tel: +86-135-0445-7191 Email: shengzhijun412@126.com Jing Ma School of Economics and Management, Changchun University of Science and Technology Changchun 130022, China Email: majingdoll@hotmail.com Received: July 22, 2011 Accepted: August 21, 2011 doi:10.5430/rwe.v2n2p21 Abstract Since entering 21st century, the Chinese economy has obtained unprecedented development opportunity, growing rapidly. We emphatically analyze the remarkable performance and the immense changes of the Chinese economy in economic output, foreign trade, foreign investment and enterprise strength, etc. Finally, we point out the reality and potential influence and contribution of emerging China on world economy. Keywords: China’s Economy, Emerging Market, World Economy At the end of 2010, China’s Social Science Institute issued “World economy Yellow Paper” and “International Situation Yellow Paper”, which pointed out China has become the second biggest economy in the world, and has been in the leading position on many aspect. For instance, China ranks second on multinational merger and acquisition and surpasses UK, France and Germany to become the International Monetary Fund's third major...
Words: 2550 - Pages: 11
...objections to China’s way of dealing with Africa, is not perceived as a result of concern for African countries, but a protection of Western political and economic interests on the African continent. The Chinese emphasize that their engagement with Africa is in fact South-South cooperation, and that it should be beneficial to both China and Africa. Rather than emphasizing its role as a donor to African countries, China considers its engagement to be a mutual benefit, leading to win-win results. Chinese aid is mainly invested in infrastructure such as roads, railways, buildings, monuments etc. This is generally very welcomed in African countries where infrastructure is often seriously underdeveloped. Many of the infrastructure projects are implemented to facilitate trade. Although all of the countries in cooperation with China are receiving some sort of aid, the size and form of the aid inflows vary. China does not disclose how much aid and investment is going into different countries, but media announcements in China give the impression that there are clear patterns to where the investment and aid from China is greatest. Countries that supply China with fundamental resources such as oil, metals and woods are strategically important and seem to receive more of both aid and investments than countries that are...
Words: 4464 - Pages: 18
...EAS6211: Investing in East Asia (as 28 September 2015) Dr Harald CONRAD (Japan, Module Organizer) Dr ZHANG Zhong (China) MODULE OBJECTIVES: This module will introduce students to key theoretical issues relating to globalization, foreign direct investment and the activities of multinational corporations. The module will then consider in detail foreign direct investment, business culture, employment and human resource management, seen from the perspective of multinationals investing in Japan and China. The module will provide students with a well-rounded knowledge of the issues facing firms seeking to establish global networks and the managers within those firms charged with the task of running the overseas operations and managing workers in a different cultural context. The module will encourage students to think more deeply about the process of overseas investment and the challenges of managing and working in the global economy, thus equipping them with some of the key skills and knowledge required of managers in global firms. Dr Harald Conrad – Contact Details: 6/8 Shearwood Road, Room B-07 Ext: 28431 Email: h.conrad@sheffield.ac.uk Dr Zhang Zhong – Contact Details: 6/8 Shearwood Road, Room A-02 Ext: 28339 Email: zhong.zhang@sheffield.ac.uk The lecturers’ office hours will be posted on their office doors during Week 1 of Semester 1. MINIMUM REQUIREMENTS: Regular attendance is required at all lectures and seminars; students should read the...
Words: 8282 - Pages: 34
...Research Assignment: “Asia’s performance during the global financial crisis has highlighted its flexibility. This flexibility, in part, arises from transformations undertaken in response to the Asian financial crisis a decade earlier.” Student Name: Eric Rodrigues Student Name: Mehmet Edib Unal Introduction The Asian Financial Crisis occurred during the year 1997-1998, and is explained well in brief by Galina Hale “East Asian countries experienced severe banking crises. Nonperforming loan ratios skyrocketed because of prior excessive risk taking and most banks had to be recapitalized by their governments.” (Hale 2011, p.3) After ten years, The Asian Financial Crisis was followed by The Global Financial Crisis in 2008. “The precise genesis of the global crisis remains subject to debate. (Lin 2012, Treichel 2012, p.3) “We will argue that global imbalances were the result of the large excess demand in the U.S. over an extended period—the financing of which was made possible by the reserve currency status of the US dollar. “This excess demand resulted from both the public debt” and “the overconsumption by households.” (Lin 2012, Treichel 2012, p.3) “As shock waves of the global financial crisis (GFC) reached East Asia in autumn 2008 immediately after the collapse of Lehman Brothers in September, the region faced the task of evaluating and reassessing the economic cooperation efforts of the previous ten years” (Katada 2011, p.274) Thus by evaluating and reassessing...
Words: 4023 - Pages: 17
...how firms take advantage of foreign opportunities, especially via foreign direct investment (FDI) has been much documented. China, as a major emerging market, has attracted significant flows of FDI, to become the second largest receipt. This paper briefly examines the literature on FDI and focuses on likely determinants of FDI in China. It then analyses responses from 22 firms operating in China on what they see as the important motivations for them to undertake FDI. Results show that market size is a major factor for FDI especially for US firms. For local, export-orientated, Asian firms, low labor costs are the main factor. The paper concludes with managerial implications for businesses wish to exploit opportunities in China. INTRODUCTION The past few years has seen a tremendous growth of foreign direct investment (FDI) that has exceeded both world output and world trade. China is by far the largest recipient, and in 2004 surpassed the USA as host destination. It has consequently attracted an increasing attention from multinational businesses. Since China adopted the reform and opening-up policy in the late 1970s, foreign investment has played an increasingly important role in its economic growth. According to the World Investment Report for 2004 by the United Nations Conference on Trade and Development, China absorbed a total of US$53.5 billion worth of foreign direct investment (FDI) in 2003. The Xinhua News Agency, quoting The National Development Reform Commission...
Words: 7747 - Pages: 31
