Thursday, January 30, 2020

Portfolio Analysis Essay Example for Free

Portfolio Analysis Essay In the investment world there are many investment options to choose from, one of there investment option is the mutual fund .a mutual fund is an investment where the investors pool resources together which are then invested in securities, fixed interest stocks and money market instruments like derivatives.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The mutual funds is a professionally managed by fund managed whose sole purpose is to ensure that the returns on the invested assets are maximized to the benefits of the individual investors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The performance of the mutual fund can be calculated by fund managers whose sole purpose is to ensure that the returns on the invested assets are maximized to the benefit of the individual investors   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The performance of the mutual fund can be calculated on a daily basis by taking the current market value of the fund and dividing it with the number of securities in the fund1 Mutual funds are usually open end company governed by the investments company act (1940) in the U. S.A Mutual funds are suitable for those high net worth individuals who are either too busy to deal personally with their investments or those investors who don’t have the investment know-how. Investors in mutual funds should have investment objectives for the mid term to long term so as to reap maximum benefits.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Some of the mutual finds include stock money market funds, hybrid funds and bond funds In the following discussion we are going to discuss dominion funds which are registered in the Guernsey   in the channel islands which is an off share country.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The dominion funds are divided in to 2 the chic fund and the x-fund. Dominion funds The company Domination Company is an investment fund management firm that is registered in the Guernsey in the Channel Islands with branch a in Switzerland.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The dominion brand is a sophisticated innovative and elegant. These attributes are in line with the business principles of the company.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The dominion fund is developed to meet the ever changing demands of the intelligent investors of today who include professional investors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These investors demand extra performance and excellent service from the fund manager and that is why the dominion brand was created to deliver excellent service and returns.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   To achieve this level of standards the company has companies two dominion distribution management limited branches in Guernsey and a dominion risk management S.A based in Switzerland. Funds traded The funds managed by dominion company are the x funds and chic funds Chic funds The structure of this fund is that it has the currency class of 3 major currencies (US $ EURO â‚ ¬ GBP  £) which are combined to form the fund. The fund itself is an 80% index portfolio and 20% active port folio.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These funds managed by dominion chic fund limited which invests in diversified stock of luxury goods and services companies recognized the world over.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Apart from being available in 3 currencies an investing in luxury goods companies the funds also offer weekly prices and redemptions.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The objective of this fund is the long-term capital appreciation. This is achieved by the division of the fund in to 2 passive investment –range between 80-100% of all assets invested depending on the stylish structure developed by the investment manager(blackrock merill lynch investment manager) and dominion company. The investment manager is required to manage the basic index in this investment as prescribed. Active investment- forms up to 20% and its objective is to increase the returns and volatility reduction. The active investment is also used to invest in those newly listed companies and in new luxury goods. Assets invested There is no single definition of luxury goods and service and hence the company has luxury to mean.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Those strong market brands with high innovativeness ability to chart price and supply easily forecasted growth and top class. It can also mean products and service of those companies with management, with track records.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The assets in chic fund are in the following sectors with the following geographical distribution Sector distribution  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   geographical distribution Beverages and food- 17.38%  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Europe-45.95% Accessories- 9.35%  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   asia-13.55% Apparel- 7%  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   USA -40.53% Watch, jewellery and optics- 8.04% Transport- 1% Leisure and hotels- 5.56% Sports 9.27% Retail- 3.52% Tech-18.76% Cosmetic-9.33% ( x- funds were created to utilize the returns generated by the available market based securities over the cost of sourcing funds e.g. through bank loans. The x fund have been designed to minimize the risk assonated with return of based securities and specifically for the risk and professional investors keen on getting a risk hedged investment well above average in the log term. Fund structure The fund is managed by dominion PCC limited which is a protected call company, formed in Guernsey and regulated by Guernsey financial service. Commission. It is an open ended in investment fund.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The fund is a 2 currency (euroâ‚ ¬ and US $) each containing 6 fund. The fund has 3 leveraged options. (Low to medium risk x 0) (medium risk x1) (and aggressive higher risk x 2) with 2 types of assets prudential and Norwich union with- profits funds. It also is priced weekly with monthly redemptions.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   X-funds innovative investments combines with profit funds with complex credit lending thus minimizing debt usage risks in the market and at the some time the market and at the same time maximizing returns over the long term. Nature of assets Dominion x-funds are invested in the best and extensive with –profits funds. The reason why dominion has invested in there funds is that of proven unsurpassed. Past performance and their consistency which makes them reliable. In any case anyway there with profits are provided by the blue chip financial institutions in Europe.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The with profits fund that dominion x- fund invests in has the following characteristics which makes them depend able for maximum returns to the investors. with profit funds are accessed only through an insurane e policy.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   One of the lalyout out features of an with profit fund is that its well founded with a long investment account that even go beyond a century. They usually involve a relatively stable portfolio that includes stocks bonds property and cash. This means that with profit funds give a level of return that barely flutualesover time. It stable level of return means that the risk involved with this port folio is low.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The other reason why dominion x-fund invests in the with profit funds only over the medium to long term is because when invested only in the short periods they are usually affected by the risk of market value reduction.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   They should only be invested in the medium to long-term in order to achieve maximum capacity gains and ensure stable returns.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The assets that the dominion x- fund invests in are the generic with profits, prudential international and Norwich union international funds PCC Protected cell company – open end company- that falls under the Guernsey’s companies law ( 1994) amended and protected cell companies ordinance 1997 amended. PCC as benefits which are; Funds assets fuly utilized by fund investors alone.

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