...The purpose of this paper is to give a peer review of the presentation team’s performance. The topic covered by the team was the role of financial market efficiency in corporate finance and its relevance to fund manager Bill Miller, Value Trust, and potential investors. We will look at the following areas in assessing the performance of the presentation team: ■ The value of supplemental readings ■ Quality and content of the concept lecture ■ Quality of the case analysis ■ Strength of the case recommendation ■ Presentation and communication skill Value of Supplement Readings The analysis team recommended the following additional readings: Chapter 8 of Brigham/Ehrhardt’s “Financial Management” textbook, Burton Malkiel’s “Reflections of the Efficient Market Hypothesis: 30 Years Later”, and Malkiel’s “Passive Investment Strategies and Efficient Markets”. All three recommendations are excellent sources for basic and advanced understanding of the case’s key financial concepts. “EMH: 30 Years Later”, especially, is a terrific read providing the original EMH founder’s thoughts on the theory’s relevancy even in today’s financial world. We also would like to recommend two academic papers that offer inquisitive views of EMH and its potential fallacies. Both works - Daniel Kahneman’s Nobel prize work “Maps of Bounded Rationality” and Lawrence, McCabe, and Prakash’s “Answering Financial Anomalies: Sentiment-Based Stock Pricing” - explore the realms of behavior finance. By questioning...
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...investment goal differentiates investment choices. The purpose of this case study is to recommend possible investment choices for Jane and the criteria used to evaluate those investment choices. Introduction Jane has inherited $30,000 from her grandmother and plans to invest this money for a future down payment on a house. Her plan is to buy a house outside of Toronto area in the next three to four years. She has a lost risk level of four out of ten as she does not want to lose the money she got from her grandmother. Moreover, she would like to obtain tax relief on her investment. At the same time, she only wants to spend about one hour per month in managing her investment. She has an adequate emergency fund on hand; therefore, she does not need to access these funds. Her travel expenses will be paid by her income. Investment Goals The primary investment goal is to obtain a future down payment on a house outside of Toronto in the next three to four years. She has a medium-low risk level of four out of ten. Moreover, she only wants to spend one hour per month in managing her investment. For the purpose of this assignment, I assume she is going to purchase a house outside of Toronto area with an estimated value of $225,000. She will need to raise $56,250 if...
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...rising income, and increasing awareness, mutual funds in Malaysia are becoming a preferred investment option compared to other investment avenues like Fixed Deposits (FDs) and postal savings that are considered safe but give comparatively low returns. But before investing in mutual funds, investors have to analyze the factors of the economy, industry and company within the investment environment in which they operate. There are several macro-economic factors having influence on the investment choices. The investigator intends to study more particularly, the impact of quantitative economic variables on the investment of mutual funds. The trends of the industry also have to be examined from time to time. In response to the changing circumstances, the fund houses have introduced a host of interesting technological innovations to grab the attention of the investors. Investors need to correctly appraise the risks and rewards of investing in schemes which seek to offer attractive returns. Total of 122 respondents were selected for data analysis. The respondents’ profile consists of demographic data namely, age, gender, occupation background, educational background, investment habit and years of investing activities. The gender, monthly income and race of respondent are not relevant for this research since it is basically focused on the investors’ habit in Malaysia. The perception will be taken into consideration as per their views on mutual fund investment. The last and final analysis...
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...------------------------------------------------- Case Study-Dfa Dimensional fund Advisors Submitted By:- Azouaou Dahmoune Drishti Oza Jeffery Meeks Kesha Patel Urvi Jain Submitted By:- Azouaou Dahmoune Drishti Oza Jeffery Meeks ...
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...DEPARTMENT OF ECONOMICS UNIVERSITY OF GHANA COMPARATIVE ANALYSIS OF THE PERFORMANCE OF MUTUAL FUNDS IN GHANA BY WISDOM KWASHIE AFORNORPE A DISSERTATION SUBMITTED TO THE DEPARTMENT OF ECONOMICS, UNIVERSITY OF GHANA, LEGON, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF ARTS DEGREE IN ECONOMIC POLICY MANAGEMENT OCTOBER, 2008 DECLARATION I, Wisdom Kwashie Afornorpe, author of this Master of Arts dissertation do hereby declare that, except for references to other people’s works which have been duly acknowledged, the work presented here titled “Comparative Analysis of the Performance of Mutual Funds in Ghana” was done entirely by me. This work has never been presented in whole or in part for any other degree in this University or elsewhere. …..…………………………… Wisdom Kwashie Afornorpe (Student) ……. ………………..…… Mr. Frank Agyire-Tettey (Supervisor) ...
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...March 2005 Vol : IV. Issue : IV FROM THE CHAIRMAN’S DESK Fiscal 2004-05 gone by, was a year with a difference for the mutual fund industry. It was the year in which the largest number of new schemes – 97 in all, were launched in a single year. This was a record. The amount mobilised by the new schemes at over Rs. 25,000 crores was also a new record. The gross amount garnered was as high as about Rs. 8.40 lakh crores – up by 42 percent over the year. But what is indeed discouraging, is the fact that the net accretion at only Rs. 2,154 crores was the lowest in the last five years. This was mainly due to the net outflow of over Rs. 14,000 crores from the Income Funds and Rs. 1,345 crores from Gilt Funds coupled with a substantially lower net inflow of Liquid Funds (Rs. 10,347 crores as against Rs. 24,577 crores last year). Inspite of 36 new equity schemes mobilising Rs. 11,756 crores, ten times more than in the previous year, the net mobilisation under equity schemes was only Rs. 7,247 crores, lower than in the previous year. May be, this is a temporary phenomenon reflecting the market realities and the scenario might change in the years to come. Yet, isn’t this a situation that needs to be analysed, lessons learnt and suitable measures taken ? Well, the industry has a challenge before it – a challenge to reach out to retail investors and to position the mutual fund products as a long term investment avenue for the household sector. This is an ongoing task, that we all have to undertake...
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... Data 100 clients were randomly selected and asked a series of questions, the criteria being they must have purchased shares in any one of the funds. Investment counselors personally ask the client to rate their level of satisfaction with the product as high medium or low. Results 30% of our investors have invested in bond fund, 30% in the stock fund and 40% have invested in the tax-deferred annuity. We can deduce from the total population data that 40 percent of all clients displayed high satisfaction, 40 percent displayed medium satisfaction and 20 percent displayed low satisfaction (Table 2.17). Stock fund clients report high satisfaction generally across our tabulation results, bond fund investors seem to have high to medium satisfaction while out tax-deferred clients seem to be relatively less satisfied. [pic] While analyzing row percentages and column percentages we can deduce that 50 percent of bond fund investors reported high satisfaction with our company's performance while 40 percent of these same investors reported medium satisfaction, and only 10 percent reported low satisfaction (Table 2.18). A collective look at the entire range of row percentages brings us to the conclusion that stock fund investors are highly satisfied, that bond fund investors are quite satisfied (but somewhat less than stock fund investors) and that tax-deferred annuity purchasers are less...
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...Mutual fund firms are continuously following the race in their endeavour to differentiate their products from competitors by responding to sudden changes in the economy. When compared to developed countries where Mutual fund has penetrated deeply into the financial system of people, the product could not get much popularity in India. Even though Mutual Funds provides investors an option of diversified investment with varying degree of risks, in practice it has failed to become a primary investment choice for Indian customers. The study focuses its attention towards the possibilities of measuring the satisfaction level and expectations of the Mutual fund products. It examines the changing behavioural patterns of the customers with respect to time and correlates the pattern with the economic conditions of the economy (National & Global). The report also attempts to suggest recommendations to improve the current perception level and customer patronage so that the customer gains the confidence/understanding, thus actively involves in Mutual fund investments. The study makes use of a few important attributes which has been discussed in the later part of the report and also...
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...Issue Date | Effective Date | Subject | 16-Jul-15 | 01-Aug-15 | Panel of Auditors of BSEC | 14-Jul-15 | 21-Jul-15 | BSEC makes amendments of Directive No. BSEC/Surveillance/2014-0840/683 dated July 14, 2015 | 08-Jul-15 | 08-Jul-15 | Amendment of the Order No. SEC/CMRRCD/2009-193/104/Admin/26 dated July 27, 2011 | 08-Jul-15 | 08-Jul-15 | Conversion guideline for close-end to open-end mutual fund | 30-Jun-15 | 30-Jun-15 | Order for Extension of Suspension of Rule 3(5) of the Margin Rules 1999 | 30-Jun-15 | 30-Jun-15 | Regarding the maintenance of provision against unrealized losses arising from investment in mutual fund units | 22-Jun-15 | 22-Jun-15 | Gazette of Bangladesh Securities and Exchange Commission (Alternative Investment) Rules, 2015 | 11-Jun-15 | 11-Jun-15 | Exemption to the foreign owned companies and the joint venture companies with foreign investment form the compliance of the Commission's Notification No. SEC/CMRRCD/2006-159/36/Admin/03-44 dated May 5, 2010 | 14-May-15 | 14-May-15 | Directive regarding distribution of dividend, fractional bonus share and rights share to the margin accountholders of the stock brokers | 13-May-15 | 17-May-15 | Order regarding circuit breaker (here it is given the upward and downward price limit of the reference price) | 04-Mar-15 | 04-Mar-15 | Repeal Directive No. SEC/SRMIC/2007-18/1178/270 dated October 12, 2011 | 02-Feb-15 | 02-Feb-15 | IPO approval Procedure | 27-Jan-15 | 27-Jan-15 | Directive No. BSEC/Enforcement/2137/2014/20 dated...
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...Since the advisor fund is outperforming the Varguard 500, it shows the market is semistrong efficiency with weak form efficiency. The weak form efficiency is based on past performance and the price of stocks. It is vital that individuals use financial information such as earnings, forecasts, merger announcements, or money supply figures when deciding to buy or sell stocks. (Ross, Westerfield, Jaffe, Jordan, 2011). The weak form of efficiency does not provide a solid platform for generating profits. The semistong form efficiency utilizes all publically traded information about the companies. The strong form efficiency utilizes all the information available, be it public or private, to make pricing decisions. In semistrong form efficiency all the public information used by analysts should outperform the mutual funds. The graph showing the advisors beating the Vanguard 500 each year can be attributed to luck. “The overwhelming evidence here is that mutual funds, on average, do not beat broad-based indexes” (Ross, Westerfield, Jaffe, Jordan, pg. 408). Since the percent of managed equity funds is consistently outperforming the Vanguard 500 year after year is inconsistent. Mutual fund managers rely on public information to make buying and selling decisions, therefore, the semistrong form efficiency and weak form efficiency would conclude that the mutual funds do not perform better than indexes. This is not the case with ECY. The recommendation for the equity investment...
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...MUTUAL FUNDING: IMPACT ON THE GHANAIAN ECONOMY A comparative study of two mutual funds companies in Kumasi DEPARTMENT OF BUSINESS STUDIES EDMUNDSON LAWRENCE KOBINA 1.0 INTRODUCTION 1.1 BACKGROUND TO THE STUDY Over the years in Ghana, the private sector has had it difficult raising capital and adequate funds for investment and other business activities, this led to the undertaking of a number of financial sector reforms by the government. The emergence of mutual funds into the Ghanaian financial sector has been as a result of these reforms. This is to facilitate capital generation and savings mobilization for the private sector to help them accomplish their organizational objectives. It has become evidently clear that, to achieve development in the economy in terms of high gross domestic product (GDP), a better per capita income, less unemployment and reduction in inflation, the private sector of the economy should be encouraged to lead in the generation of wealth. Capital for investment in this country (Ghana) is either sought for internally or externally but the Ghanaian government like its’ counterparts in other African countries have been relying heavily on external funds from developed economies and donor communities to be able to implement public sector development policies. This has not been so easy in recent years due to the diversification of these funds to countries such as China and other Asian countries that are now better...
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...Project ON CUSTOMERS PERCEPTION REGARDING MUTUAL FUNDS ACKNOWLEDGEMENT “Every person I have known who has been truly happy, Has learned how to serve others” It was a highly eventful two months at KARVY Stock broking Ltd. Working with the highly devoted professional community will probably remain the most memorable experience of my life. Hence this acknowledgement is a humble attempt to earnestly thank all those who were directly or indirectly involved in my training and were of immense help to us. I would like to thank Management of KARVY Stock broking Ltd. for providing me the opportunity to undergo my training at KARVY This project would not have been possible without the guidance and help of Mr. Vikas Naib.I thank him for encouragement all the way right from the information retrieval to completion of the project and for standing by me right through thick and thin. I express my sincere thanks to Mr. Samir, my company guide, whose supervision, inspiration and valuable discussion has helped me to complete my project. His guidance proved to be the most valuable to overcome all the hurdles in the fulfillment of this project. I would also like to extend my thanks to Miss Sumina who helped me at various points of the project. Finally I thank all the employees of Distribution Department for providing me the perfect environment to complete...
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...James Tithe is manager of a large branch office of a major Midwestern brokerage firm, Brock Mason Farre Titmouse. He now manages 40 brokers in his office. Mr. Tithe used to work for E. F Hutton as a broker and assistant manager, but when that firm merged with Shearson- Lehman/American Express, he disliked his new manager and left for Brock Mason. He knew the new firm to be aggressive and interested primarily in limited partnerships and fully margined common stock. He liked the new challenge. At Hutton his clients had been predominantly interested in unit investment trusts and municipal bonds, which he found boring and routine forms of investment. He also knew that commissions are higher on the array of products he was hired to sell at Brock Mason. Although bored at Hutton, James had been comfortable with the complete discretion the firm gave him to recommend a range of investments to his clients. He had been free to consult at length with his clients, and then free to sell what seemed most appropriate in light of their objectives. Hutton of course skillfully taught its brokers to be salespersons, to avoid lengthy phone calls, and to flatter clients who prided themselves on making their own decisions; but the firm also did not discourage the broker from recommending a wide variety of products including U.S. government bills, notes, and bonds, which averaged only a $75 commission on a $10,000 bond. This same array of conventional investment...
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... Comparative Study and analysis of Sectoral funds and Investor perception about Mutual funds 2. Rationale of proposed investigation : To analyze the performance of different sectoral funds and to find which sector funds have performed well in different periods in the past and whether it can be recommended for investment to investors to earn high returns on a continual basis. 3. Review of work already done on the subject : In Mutual Funds, lot of work has been done by the researchers like study of top 5 equity diversified funds, comparative study of various Mutual Funds etc. Present work is based on studying the portfolio of various sector funds (Aggressive Funds) and to know about the Investor perception of investing in Mutual Funds 4. Objective(s) : a) To analyze the performance of sectoral funds for different periods and which sectoral fund has perfomed well in the past in different periods b) To compare the performance of various funds of a particular sector and compare it with other sectors c) To find which type of investors should invest in sectoral funds 5. Major Hypothesis (s) : Alternate Hypothesis: Different sectoral funds have performed well in different periods and the investors who are risk averse should invest in these funds Null Hypothesis : All sectoral funds performes consistently in the past and investors can invest in...
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...11/4/2011 Mr. Susilo Hatono 4th Client Meeting November 2011 Excellence Professionalism Commitment Integrity Partnering and Leading You to Your Success 1 Our Trusted Team and Approach Our relationship is established on EPIC values – 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...
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