Alternative Investment Instruments

In: Business and Management

Submitted By kurry
Words 7807
Pages 32
Alternative Investment Instruments
Fin 460, Section - 2

Karishma Rahman - 1330090
Rumman Rahman - 1320142
A.S.M Asadul Haque - 1231001
Abdullah Al Masud - 1210380
Imtiaz Ahmed - 1220812
2015

Table of Contents Introduction 1 Identification of Alternative Instruments 2  Art 2 History 2 Characteristics and details 3 Prospects in Bangladesh 5  Gold 6 History 6 Characteristics and details 7 Prospect in Bangladesh 9  Real Estate 10 History 10 Characteristics and details 11 Prospects in Bangladesh 13  Private Equity 14 History 15 Characteristics and details 15 Prospects in Bangladesh 17  Venture Capital 18 History 19 Characteristics and details 19 Prospects in Bangladesh 21 Conclusion 22 References 23

Introduction

As volatile as the stock market can be, many investors have been looking into safer ways to invest their money. So, “alternative investments” have become increasingly popular. An alternative investment is any investment other than the three traditional asset classes: stocks, bonds and cash. These alternatives don’t take the place of those more traditional assets. Investors shouldn’t sell their stocks, cash out their savings accounts and put all their money in these less traditional options. Most financial experts agree that alternative investments are best when used to diversify financial portfolios. In other words, instead of putting all of the money in stocks put some in stocks, some in bonds and some in alternative investments like hedge funds, private equity or even fine art and wine.

Historically, many of these alternative investments have been more popular among high-net-worth individuals and institutional investors, such as private endowments. That’s because many alternative investments require larger initial investments than stocks or bonds. Also, while it may not be the case…...

Similar Documents

Diamonds as an Alternative Investment

...| Are diamonds investor’s best friend? | Study on polished diamonds as an alternative investment. | | Presented by:Daria GoldobinaStudent number:080006193Supervised by:Anh L. TranIn partial fulfilment of the:BSc Business Studies, Cass Business SchoolDate:24th March 2011I certify that I have complied with the guidelines on plagiarism outlined in the Course Handbook in the production of this dissertation and that it is my own, unaided work.Signature:__________________________________________ | | This work is dedicated to the memory of my beloved grandfather Ivan Smolin. He was a sweet, kind and sensitive man who devoted his life to studying precious stones and metals. He enriched my life with passion to beauty. If God wanted us to bend over he'd put diamonds on the floor Joan Rivers Contents Acknowledgements 3 Executive summary 7 I Introduction 10 Ground for discussion 10 Objectives 10 Methodology 11 II Literature review and hypothesis development 12 Overview 12 Introduction 12 History of diamonds 12 Industry structure 13 DeBeers cartel 15 Diamond valuation 16 Diamond valuation process 16 Determinants of diamond prices 18 Diamond as an investment 19 Types of investment 19 Problems associated with investing in diamonds 20 Benefits associated with investing in diamonds 20 Alternatives to investing in diamonds 23 Hypothesis development 25 III Methodology 26 Data collection 26 Primary......

Words: 19903 - Pages: 80

Alternative Investments

...| Alternative Investment Project | | | | | | | | Content Page: Content | Page | Cover Page | 1 | Content Page | 2 | Executive Summary | 3 | Introduction | 3 | Content of Project | 4 | Conclusion | 9 | Recommendation | 9 | Appendix | 10 | Assignments of work | 19 | Executive Summary: The purpose of the report is to do an in-depth investigation, study and analysis on alternative investments. From the various alternative investments, our team of analyst chose commodities, variable annuities and hedge funds as our subject of interest for the study. Each financial product has its own aims as to cater to the different investment goals to meet the needs of investors. Thus, just by looking at the basis on expensiveness and tax-efficiency, and then from selecting the better one is unwise. We have to look at the overall picture and considering other indispensable factors like risks, liquidity, asset allocation which are equally important. Therefore, our basis of evaluation comprises of various important factors so as to make a robust analysis. Firstly, commodities are a highly demanded investment which is traded using options and futures contract.. Moreover, they are also an element of diversification that investors can lower their vulnerability to market volatility. Despite its high volatility in its prices, it managed to gain a higher return as compared to stocks and bonds. As commodities have a low correlation with bonds...

Words: 6449 - Pages: 26

Financial Instruments

...Financial Instruments in Cohesion Policy 2014-2020 COHESION POLICY 2014-2020 The European Commission adopted legislative proposals for cohesion policy for 2014-2020 in October 2011 This factsheet is one in a series highlighting key elements of the future approach Table of contents What is the aim? What is proposed? What has changed from 2007-2013? What are the practical effects? Cohesion Policy Financial instruments represent a resource-efficient way of deploying cohesion policy resources in pursuit of the Europe 2020 Strategy objectives. Targeting projects with potential economic viability, financial instruments provide support for investments by way of loans, guarantees, equity and other risk-bearing mechanisms including policy-based guarantees for the European Social Fund (ESF), possibly combined with interest rate subsidies or guarantee fee subsidies within the same operation. Besides the obvious advantages of recycling funds over the long term, financial instruments help to mobilise additional public or private co-investments in order to address market failures in line with Europe 2020 and cohesion policy priorities. Their delivery structures entail additional expertise and know-how, which helps to increase the efficiency and effectiveness of public resource allocation. Moreover, these instruments provide a variety of incentives to better performance, including greater financial discipline at the level of supported projects. Financial instruments have been...

Words: 1810 - Pages: 8

Alternative

...planning to retire. Cost of good sold is related high due to much of the equipment in the Squamish plant was very old, by 2007, only 15% of the machinery in the plant was new, efficient, numerically controlled equipment. Alternative 1. Focus on single line productions, reduce operating cost and re-structure company by centralization Pro: 1. Continue and enhance cost leadership strategy by decreasing product cost and operating more efficient 2. Quality and reliance will also be improved by replacing aging equipments 3. Centralization structure can enforce product line focus and improve communication among divisions. In addition, it will make incentive programs more effective and reinforce a shared vision. Cons: 1. It will be costly to replace the old equipment and re-structure the company 2. The risk is high due to requiring high investment and uncertain issue of re-structuring company 2. Expand into standard crane market and improve customer services Pro: 1. It may increase sale by entering into different market and improving services Con: 1: It will move away from company focus. In addition, the cost may increase and the company will lose competitive advantage in the market. The risk is high due to high investment and without competitive advantage 2: The main current issues of the company will not be solved. 3. Sell the company pro: Cash out of your business and get rid of headaches. It will release you from the......

Words: 493 - Pages: 2

Alternatives

...Alternative 1 – Acquiring SSI The second alternative under consideration by ASFC Ltd is acquiring SSI Ltd. This alternative is very profitable (see Exhibit # X) and meets one of the two constraints mandated. The pros and cons are listed below in Table # X. Table 1: Pros/Cons of Acquiring SSI Pros | Cons | * SSI has strong growth aspects * SSI has a strong presence in Western Canada and could help improve ASFC’s presence * Nicole Gagnon, VP of Sales supports the purchase of SSI Inc. * Choosing to acquire SSI has a positive NPV and reaches the revenue growth goal by doubling revenue by 2014 * Comes with profitable line of Petsnax * Allows ASFC to enter into the premium snack market with SSI growing by 10% annually, this will allow further penetration of market | * SSI’s employees have expressed concerns with the move * There are cultural differences between SSI and ASFC * Has not reached the margin goal (see exhibit X) * Petsnax is not a usual offering of ASFC and Jeff Karpenko would like to sell it * SSI’s head office is in Edmonton, whereas ASFC’s is in Toronto – would require a move and unhappy employees | Exhibit X - Acquisition of SSI Acquisition Costs | $ (8,500,000.00) | Initial Investment Cost1 | $ (31,638,022.67) | PV of Synergistic Savings2 | $ 3,616,200.00 | PV of Future Cash Flows3 | $ 39,426,739.41 | Initial Costs of Integration | $ (4,500,000.00) | Sales of Assets | $ ......

Words: 482 - Pages: 2

Ensuring Long Term Investment for Large Scale Solar Power Stations: Hedging Instruments for Green Power

...Available online at www.sciencedirect.com Solar Energy 98 (2013) 167–179 www.elsevier.com/locate/solener Ensuring long term investment for large scale solar power stations: Hedging instruments for green power A. Radchik a,⇑, I. Skryabin b, J. Maisano c, A. Novikov d, T. Gazarian e Mathematics & Statistics, Faculty of Science, UTS and Director GTS Pty. Ltd., Suite 2, 16 Figtree Avenue, Randwick, NSW 2031, Australia b Centre for Sustainable Energy Systems, Australian National University, Canberra 2000, Australia c Energy Markets, TTA Pty. Ltd., Suite 12, L6, 321 Pitt St., Sydney, NSW 2000, Australia d School of Mathematics & Statistics, Faculty of Science, University of Technology Sydney (UTS), P.O. Box 123, Broadway, NSW 2007, Australia e School of Mathematics & Statistics, Faculty of Science, UTS, 1 Stella Vista Pl, Greenwich, NSW 2065, Australia Available online 29 March 2013 Communicated by: Associate Editor Frank Vignola a Abstract There is a general consensus that solar power is one of the cleanest energy technologies available. Nevertheless, investment in largescale Solar Power Generators (SPGs) is largely impeded by the intermittent nature of solar power. Since the electricity market has a critical responsibility to maintain the reliability of energy supply, the SPG can be registered only as the market semi-scheduled generator (AEMC, 2011). This option excludes the advantages of providing baseload supply, which in turn impedes efficient market contracting for......

Words: 9318 - Pages: 38

Alternative Investments

...Assessment M.Sc. Global Banking & Finance Alternative Investments Lecturer: | John Diamondopolus | Module: | Alternative Investments | Submitted by | Josip Sestan, Chetanna Chukwudum | Submitted: | 06.04.2014 | Content Tables III Figures III Abbreviations IV 1 Overview of Hedge Funds Strategies 1 2 What are Emerging Markets and why are they so important? 2 3 Why do Hedge Funds invest in Emerging Markets 6 4 DWS Invest Global EM Equities LC 8 4.1 Inside the DWS Invest Global EM Equities LC fund 8 4.2 Performance of the fund 10 5 Hedge Funds Performance in EM scientific paper review 11 6 Hedge Funds Strategies in EM and Africa 12 6.1 Investment strategies in more developed EM. 16 6.2 Hedge Fund Strategies within Africa and Sub Saharan Africa 19 7 Risk exposures in emerging markets 23 8 Conclusion 25 References 26 Tables Table 1: Hedge Fund Strategies 1 Figures Figure 1: Emerging Markets vs. Developed Markets 2 Figure 2: Emerging Markets vs. Developed Markets GDP growth in percentage 3 Figure 3: Development of the working-age population 3 Figure 4: EM vs. US: Consumption levels 4 Figure 5: EM dept. has exceeded EM 5 Figure 6: MSCI World vs. MSCI Emerging Markets 6 Figure 7: CS Hedge Fund Index vs CS EM Hedge Fund Index 7 Figure 8: Country distribution 8 Figure 9: Industry Sectors 9 Figure 10: Equity Share Distribution 9 Figure 11: Perfomanc of the fund 10 Figure 12: EM performance 13 Figure......

Words: 4991 - Pages: 20

Alternative

...Alternative Financial Services The world of finance is a growing industry, which helps provide the needs for individuals and businesses alike. Within the field of finance, there are many different sectors such as commercial banking, insurance, investment banking, and most importantly, Alternative Financial Services. The term Alternative Financial Services is described on the Federal Deposit Corporations website as follows: Alternative Financial Services (AFS) is a term often used to describe the array of financial services offered by providers that operate outside of federally insured banks and thrifts (hereafter referred to as "banks"). Check-cashing outlets, money transmitters, car title lenders, payday loan stores, pawnshops, and rent-to-own stores are all considered AFS providers. To sum things up, Alternative Financial Services are basically ways to receive money without using a more traditional way, such as getting a loan from a commercial bank. The different [I would delete “different” – seems repetitive with “incredibly diverse”] types of Alternative Financial Services are incredibly diverse, often described as a melting pot of providers. These different services include car title lenders, pawnshops, rent-to-own stores, and last but not least, payday loan stores. Alternative Financial Services have become increasingly popular since the Great Recession, mainly due to the strict credit regulations among commercial banks. Due to its deep roots in......

Words: 2226 - Pages: 9

Negotiable Instruments

...it is important to determine if the person currently possessing the instrument qualifies as a holder in due course. The basic definition is found in §3-302(a), which you should read carefully. Official Comment 4 to §3-302 makes it clear that the payee can qualify as a holder in due course in some rare situations. Normally, the payee is so involved in the underlying transaction that he or she has notice of problems affecting payment obligations, and thus cannot be a holder in due course. But the examples given in Official Comment 4 describe fact patterns where the payee is innocent of such knowledge and can therefore qualify for the protection given to holders in due course. See also Eldon’s Super Fresh Stores, Inc. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 296 Minn. 130, 207 N.W.2d 282, 12 U.C.C. Rep. Serv. 490 (1973), for an example of the payee as a holder in due course. 35 36 3. Holders in Due Course Subsection (c) gives a list of extraordinary transactions — creditors seizing instruments by judicial process, the sale of an inventoried business (a ‘‘bulk transaction’’), or the appointment of the administrator of an estate containing negotiable instruments — in which the transferee is statutorily denied holder in due course status.1 A. ‘‘Holder’’ Note first of all that in order to be a holder in due course the possessor of the instrument must qualify as a holder. This means that the instrument must be technically negotiable and must have been......

Words: 34047 - Pages: 137

Investment

... Investment Banking Giuliano Iannotta Investment Banking A Guide to Underwriting and Advisory Services Professor Giuliano Iannotta Department of Finance ` Universita Bocconi via Roentgen 1 20136 Milano Italy giuliano.iannotta@unibocconi.it ISBN: 978-3-540-93764-7 e-ISBN: 978-3-540-93765-4 DOI 10.1007/978-3-540-93765-4 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2009943831 # Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg, Germany Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) To my......

Words: 86170 - Pages: 345

Alternative Investment

...Executive Summary A significant element of investment management is the mechanisms of alternative investment. A strategic selection of the right asset allocation can provide a means of protection against unsystematic risk, also known as “diversifiable risk”. Though a well-diversified investment portfolio can provide a means of risk minimisation, allocating assets across a varied range of investments through alternative means is essentially the most effective mechanism. A combination of private equity, hedge funds, venture capital, commodities, real estate and art can assist in achieving this objective. Alternative investments were restricted to professional fund managers and large private investors. However, many small investors now have a way to access alternative investments through venture capital, hedge funds and private equities (Brailsford, T 2011). Following the Global Financial Crisis (GFC), investors shifted capital into lower risk investments. Some financial institutions and individual investors preferred to place a large percentage of their capital into lower risk products such as commercial papers and treasury notes. However, others believe that such events provides a good opportunity to invest their capital into higher risk instruments in order to gain greater returns in the mid-to long-term. The core principles of investment is the diversification of assets to minimise risks. Therefore, alternative investments plays a pivotal role in broadening the......

Words: 2672 - Pages: 11

Alternatives

...Alternatives: In 2006, shortly before the market exit, the executive team of Wal-Mart had several alternatives to minimize financial losses and re-establish lost reputation. The first option for them was to create joint venture agreements with German retail chains. These agreements would help the corporation to reduce investment risk, as local players are well aware of the German consumer’s shopping habits and preferences. Furthermore, they would allow the firm to understand the legal environment in Germany. However, there are challenges attached to this option. Collaboration can only be successful with the right local partners in terms of having similar suppliers, strategies, and operations.  The second option for Wal-Mart was to exit the German market, as it would enable company to focus its resources to profitable locations around the globe. The third option for Wal-Mart was to re-establish its presence in German markets by setting up a new company with a new name. That would allow the company to stay in the market while simultaneously fixing its reputation. To address the issues with the store layout, management should adjust to local preference by implementing the new stores in smaller units. Walmart needs to evaluate several market entry strategies before entering new market. The first option for Walmart is to create joint venture agreements with local partners as it helps them to reduce its investment risk and understand the local culture. However, there are......

Words: 532 - Pages: 3

Forex Instrument

...with Hedging Instruments In partial fulfillment of the requirements of for award of Master of Management Studies Through Atharva Institute of Management Studies under the guidance of Prof. Aditi Mahajan Submitted by Paras Gada MMS Batch: 2010 – 2012. DECLARATION I, Mr. Paras Gada of Atharva Institute of Management Studies pursuing Masters of Management Studies hereby declares that I have completed this project on “Foreign Exchange Market with Hedging Instruments” for the Academic period 2010 – 12. The Project has not formed the basis for award of any other degree, associates, fellowship or any other similar titles. This information submitted is true and original to the best of my knowledge. Place: Mumbai Date: 3rd April, 2012 Signature of the Student ACKNOWLEDGEMENT The present work is an effort to throw some light on ‘Foreign Exchange market with Hedging Instrument’ the work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledged the encouragement and guidance received by Prof Aditi Mahajan, for completion of my project report. CERTIFICATE This is to certify that Mr. Paras Gada, a student of Atharva Institute of Management Studies, of MMS SEM IV bearing Roll No. 12 and specializing in Finance has successfully completed the project titled “To study Foreign Exchange market with Hedging......

Words: 10858 - Pages: 44

Credit Instrument

...made easier and wider with the aid of the latest gadgets and instruments that are brought by the latest technology. Technology has touched everything even the process in which the people are obtaining something for payment, the purchasing process. In today’s perspective, purchasing has been an easy way to acquire something because of the innovative instruments that aids the process. The most basic and most used instrument is the cash, which is provided by the government of every country. Derived from this is the credit card, which is one of the most innovative instruments of purchasing since it can easily be used and is very convenient. There are other instruments for purchasing, but these two instruments are somewhat competing in many ways with no particular reason. In this study, a careful analysis between cash and credit card will be provided to give its readers wider range of knowledge about these instruments. Personal experiences from real people will also be provided to support the study. This will be a good reference for all the interested readers who do not have enough knowledge regarding the two powerful instruments of purchasing, the money and the credit card. II. Background of the Study This study, Money Wars: A Comparative Analysis between Cash and Credit Card as today’s Purchasing Instrument for Young Professionals, aims to supply concrete information regarding each purchasing instrument based on young professionals’ assessments. This study would......

Words: 6665 - Pages: 27

Financial Instruments

...first issued IFRS 9 Financial Instruments in November 2009, which dealt with the classification of financial assets and aspects of their measurement (Anna-Maija Lantto, Petri Sahlstrom, 2009). Consequently, the AASB first issued AASB 9 Financial Instruments in December 2009. After that, the IASB re-issued IFRS 9 in October 2010, setting out requirements for the classification, and aspects of measurement, recognition and derecognition of both financial assets and financial liabilities. Most of the requirements for financial liabilities were carried forward unchanged from IAS 39. However, some changes were made to the fair value option for financial liabilities to address the issue of own credit risk. The AASB re-issued AASB 9 Financial Instruments, which incorporates IFRS 9 Financial Instruments, in December 2010.本文由优质文化有限责任公司整理提供。阅读更多原创的文章,请点击www.youzhiwenhua.com专业的毕业论文代写论文代写代写论文留学生论文代写代写留学生论文代写法语论文代写日语论文代写韩语论文文化网站QQ527510459 TEL15982106398 The requirements in AASB 9 (as issued in December 2010) arise from the completion of the first phase of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement, which is incorporated in AASB 139 Financial Instruments: Recognition and Measurement (Houston, R.W. Peters, M.F. and Pratt, J.H., 1999).The objective of this whole project is to improve the usefulness for users of financial statements by simplifying the classification and measurement requirements for financial instruments. So, we will be......

Words: 2505 - Pages: 11