...PORTFOLIO ANALYSIS: SEPARATING WINNERS FROM LOSERS IN THE ASSOCIATION WORK PLAN Once an association has adopted a strategic plan, the next step is to convert the goals and objectives in that plan to a work plan and budget. But how can this be done? Every association program or service has a constituency and a claim on resources. How then to weigh the allocation of scarce resources to ensure that the objectives of the plan are attained and member needs are served? Portfolio analysis has been devised to help associations bridge the gap between strategy formulation and strategy implementation. In other words, it helps you make the hard choices of where to put your money. It is the creation of Dr. Ian MacMillan of the University of Pennsylvania’s Wharton School and the basis for The Forbes Group’s model. What Portfolio Analysis Is Portfolio analysis is a systematic way to analyze the products and services that make up an association's business portfolio. All associations (except the simplest and the smallest) are involved in more than one business. Some of these include publishing, meetings and conventions, education and training, government representation, research, standards setting, public relations, etc. Each of these is one of the association's strategic business units (SBUs). Each business consists of a portfolio of products and services. For example, an association's publishing business might include a professional journal, a lay magazine, specialized newsletters...
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...Vertex R&D portfolio Decision Joshua Boger, CEO of Vertex has to decide on two out of four R&D portfolios that are to be fully funded by Vertex and to decide on the fate of the other two portfolios i.e. whether to partner or hold them as backups. In order to decide on the R&D portfolio, an objective quantitative analysis might not be suitable considering the high levels of uncertainities and consequently the risks involved in pharmaceutical research projects. It is important to have a qualitative analysis of the situation as a whole that includes Vertex’s own financial position, strategic implications, a quantitative analysis of its Portfolios with realistic estimations and a risk analysis of the portfolios. 1. Vertex finacial analysis As per Vertex’s income statement(exhibit- 2B), it is clear that Vertex R&D expenditures in most of the preceeding years until 2002 has exceeded its revenue to the tune of 120% of its revenue in 2002 . The net income has been negative for all these years and the company is yet to prove itself in the stock market and gain investor’s confidence (exhibit-5). As per exhibit-2a, though Vertex’s cash position is strong, most of it (~50%) is through convertible debt and unless Vertex creates a breakthrough in the market through block buster drugs or substantial revenue it is unlikely that Vertex can attract funds or generate interestes in the market for additional funding for its projects. Also in oder to scale its operations e.g. sales and marketing...
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...across the globe. Drawing upon that experience, the Handbooks are therefore targeted primarily at central bankers, or people in related agencies or ministries. The aim is to present particular topics which concern them in a concise, balanced and accessible manner, and in a practical context. This should, we hope, enable someone taking up new responsibilities within a central bank, whether at senior or junior level, and whether transferring from other duties within the bank or arriving fresh from outside, quickly to assimilate the key aspects of a subject, although the depth of treatment may vary from one Handbook to another. We hope they will also be helpful to those with some experience, but who are facing new problems as the economy and markets develop. While acknowledging that a sound analytical framework must be the basis for any thorough discussion of central banking policies or operations, we have generally tried to avoid too theoretical an approach. The Handbooks are not intended as a channel for new research. We have aimed to make each Handbook reasonably self-contained, but recommendations for further reading may be included, for the benefit of those with a particular specialist interest. The views expressed in the Handbooks are those of the authors and not necessarily those of the Bank of England. We hope that our central banking colleagues around the world will continue to find the Handbooks useful. If others with an interest in central...
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...PORTFOLIO ANALYSIS: SEPARATING WINNERS FROM LOSERS IN THE ASSOCIATION WORK PLAN Once an association has adopted a strategic plan, the next step is to convert the goals and objectives in that plan to a work plan and budget. But how can this be done? Every association program or service has a constituency and a claim on resources. How then to weigh the allocation of scarce resources to ensure that the objectives of the plan are attained and member needs are served? Portfolio analysis has been devised to help associations bridge the gap between strategy formulation and strategy implementation. In other words, it helps you make the hard choices of where to put your money. It is the creation of Dr. Ian MacMillan of the University of Pennsylvania’s Wharton School and the basis for The Forbes Group’s model. What Portfolio Analysis Is Portfolio analysis is a systematic way to analyze the products and services that make up an association's business portfolio. All associations (except the simplest and the smallest) are involved in more than one business. Some of these include publishing, meetings and conventions, education and training, government representation, research, standards setting, public relations, etc. Each of these is one of the association's strategic business units (SBUs). Each business consists of a portfolio of products and services. For example, an association's publishing business might include a professional journal, a lay magazine, specialized...
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...types of market. The agenda of using moving average lag indicators like Bollinger band is to check how well these bands work in giving out trade signals. * The study aims to find out using Bloomberg terminal that whether combination of studies and Risk management help to enhance the performance of the indicators and do they really help to make a more profitable decision. * This study also intends to use some basic fundamental indicators to identify whether they can be used as tool to invest in securities and how well they are able to perform as compared to a benchmark index. The aim is to use a matrix of indicators, so that it can be also assessed whether combination of basic indicators are good enough to make portfolio creation judgment that can lead to market beating portfolio or not. * All the testing has been done using the Bloomberg terminal. LIMITATIONS * There are many lead, hybrid and lag indicators available in the market however not every single one can be tested. * The testing only targets the NSE that is typically Indian market, hence the results may be non-inferential for international markets. * The matrix used in fundamental factor back testing only tests out few combinations and only takes into consideration a few fundamental indicators. Hence it is limited by the scope of the study that is to just determine that can there be successful portfolio built using simple indicators or not. AN INTRODUCTION ON TECHNICAL ANALYSIS In...
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...PORTFOLIO ANALYSIS: SEPARATING WINNERS FROM LOSERS IN THE ASSOCIATION WORK PLAN Once an association has adopted a strategic plan, the next step is to convert the goals and objectives in that plan to a work plan and budget. But how can this be done? Every association program or service has a constituency and a claim on resources. How then to weigh the allocation of scarce resources to ensure that the objectives of the plan are attained and member needs are served? Portfolio analysis has been devised to help associations bridge the gap between strategy formulation and strategy implementation. In other words, it helps you make the hard choices of where to put your money. It is the creation of Dr. Ian MacMillan of the University of Pennsylvania’s Wharton School and the basis for The Forbes Group’s model. What Portfolio Analysis Is Portfolio analysis is a systematic way to analyze the products and services that make up an association's business portfolio. All associations (except the simplest and the smallest) are involved in more than one business. Some of these include publishing, meetings and conventions, education and training, government representation, research, standards setting, public relations, etc. Each of these is one of the association's strategic business units (SBUs). Each business consists of a portfolio of products and services. For example, an association's publishing business might include a professional journal, a lay magazine, specialized...
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...series of poducts such as Enfamil and Nutramigen. Mead Johson provides dietary products that suits the young human body and improves its health and growth. The company has special product lines for children suffering from nutrition problems and infants with deceases that require special diet. The company, in conjunction with pediatrists and other medical professionals, is conducting wide researches to develop their products. Presently, Mead Johson Company has eight families of products that are available in the markets worldwide. Three manufacturing facilities in theU.S. supply products to the local market. In addition, there is a facility in Mexico and in Brazil. European market is supplied with products from the manufacturing facility located in Netherlands and Asian market – from three facilities located in China, Thailand and Phillipines . Sales for the first six months of 2013 were $2,093.2 million, with the largest input from Latin American and Asian markets. Asset value for the period ending December 31, 2012 totaled $3,258.2 million . Table 1. Key Ratios (MJN) Key ratios (MJN) 2007 2008 2009 2010 2011 2012 TTM Earnings Per Share USD 5.84 2.32 1.99 2.2 2.47 2.95 3 Net Margin % 16.4 13.67 14.14 14.41 13.83 15.49 15.25 Return on Assets % 33.72 29.58 23.29 20.75 20.1 20.07 19.53 Return on Equity % 69.46 - - - - - 942.3 Current Ratio 1.22 1.1 1.21 1.48 1.57 1.47 1.65 Quick Ratio 0.51 0.41 0.83 0.99 1 1.05 1.16 P/E ratio - - 17.9 24.1 27 - 25.92 Source: Morningstar...
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...the Australian share market volatility. Market volatility has wiped 15% from the value of the Australian share market since March 2010 (Cain 2010). In volatile markets, it is common to feel uneasy about investing due to the risk involved. But, market volatility is completely normal and the current market conditions may actually be advantageous for some investors. For example, volatility is needed to some degree because if prices do not move sufficiently, it will be difficult to make money from trading them. Thus, the recent fluctuations in the share market have highlighted the fact that there are risks involved with investing money and that finding the right investment strategy is a crucial step in investing. Investors today have more investment options than were available to the average investor just a few decades ago. While having multiple options is usually a good thing, too many options can cause confusion and system overload and lead many people to avoid making decisions about their investment strategies. Most strategies used to invest in the share market fall into three general categories including technical analysis, fundamental analysis, or a buy-and-hold strategy. The fundamental analysis approach is primarily concerned with value; it examines factors that determine a company's expected future earnings and dividends as well as the continued dependability of those earnings and dividends (McDonald 2007, 100). The investor who uses technical analysis attempts to predict...
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...MS10A009, MBA- 2012 BATCH, DOMS, IITM 2/21/2012 I. Case Analysis – Risk management Policy of Lufthansa Submitted in Assignment 1 II. Case Analysis: Commodity Market Derivatives Case Solutions: 1. Discuss the risk exposure of Amarnath hedge fund. Ans: The Amaranth hedge fund was exposed to following risks: a. Market risk: The risk that occurs from the volatility of investment returns b. Liquidity risk: It measures the degree of difficulty in exiting a given trading position c. Funding risk: It measures the extent to which they were able to meet margin calls on their natural gas position d. Capacity risk: The risk due to putting too much money into one particular strategy 2. What are the negatives to rolling a spread position? Ans: Negatives to rolling a spread position are: When rolling a spread position the investor expects the following months to which the contract was rolled over to be favourable and thus be able to unload its positions. But, if the market moves in a direction opposite to the one anticipated by the investor it can result in huge losses. Also, if the risk increases for a spread position with the increase in the leverage. In the case of Amaranth hedge fund, it had rolled its short positions prior to august into the next month, hoping that market conditions would change and enable it to unload its positions. There were now no more summer months into which it could roll these positions. By late August, with hurricane season almost over and natural...
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...2 Google’s major brands 2.1 Search engine 2.2 YouTube 2.3 Chrome Browser 2.4 Maps, Earth and Street View 2.5 AdWords and AdSense 2.6 Other Google brands 3 Portfolio analysis via matrices in the 21st century 3.1 Why portfolio analysis? 3.2 Portfolio analysis and Google 3.3 Companies like Google 4 Conclusion Reference List II 1 2 2 3 4 5 5 6 7 7 8 10 11 III I List of figures Figure 1: McKinsey / General Electric Matrix Figure 2: Google’s brands in a GE Matrix 2 7 II 1 Introduction According to the list FT Global 500 from the Financial Times, Google is worldwide on position 39 from the companies listed in the stock exchange (Financial Times, 2009). Google was founded in 1998 by the software engineers Larry Page and Sergei Brin. Nowadays, only 12 years later, it has grown to one of the greatest international companies which has a huge influence on the daily life in industrial nations. Furthermore with 66 billion US-Dollars Google is the most valuable brand in the world. They started with a search engine which has pushed the former competition like AltaVista out of business. Google Inc. had in 2008 a turnover of almost 22 billion US-Dollars and it is still growing (Google, 2010). At the beginning they had a positive press but nowadays there are more and more critical voices because of their high market share in the search engine sector of almost 90%. Critics say that Google has too much influence and it is possible that they manipulate data. Google has many...
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...International Marketing – 3rd Assignment Portfolio Analysis Region 4 (Italy) June 2011 1 Portfolio Analysis – The BCG Matrix The BCG Matrix is a market growth-market share matrix developed by the Boston Consulting Group, which is used to support strategic decisions in order to optimize a business portfolio with regard to new, old, innovative or established products and/or strategic business units (SBU). Its underlying theories are the experience curve as well as the product life cycle. Having classified its strategic business units, a company can develop its individual strategies for each of these SBUs. Future decisions include how to allocate investments on the SBUs, analysis about whether the respective products are still profitable or should be “killed” or given away and last but not least the need for developing new products or SBUs. The findings of the PIMS database (Profit Impact on Market[ing] Strategy) support the BCG matrix . Source: Kotler/Bliemel, Marketing Management, 12th Edition 2007, p. 96-103 Turnover / Profit Product Life Cycle Unit Cost Experience Curve Market Growth Rate Indroduction Growth Maturity Decline Withdrawel ? 2 1 Product Life Cycle of a Successful Product Product Life Cycle of an Unsuccessful Product Relative Market Share 1 Profit 2 Time Cumulative Output ? STAR: SBU with high market share in a growing market Costs of such business units are usually decreasing over time and at a faster rate...
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...------------------------------------------------- MAF707 Portfolio investments and Financial Planning ------------------------------------------------- Group Assignment Group 77: Weizhe Shi_900443906 Ran Li_210037023 Yichao FU_900387184 Contents Question 1 3 Analysis of securities and the market index 3 Summary 3 Question 2 7 Question 3 8 Question 4. 9 Standard Consumption of CAPM 9 Expectation errors relied on ex-post data 12 Reference List 14 Question 1 Analysis of securities and the market index Summary Firstly we calculated the monthly return of each securities which depend on the data of adjust close price every month. The formula is the latter month’s adjust close price minus the previous monthly adjust close price then divide the latter month’s adjust close price. On the basis of the results, we moved forward the steps that calculate the mean, median, skewnes, kurtosis, variance and correlation coefficients. Those data have been calculated and presented in excels. Definition and Formula 1. Mean The mean value is the average value of monthly return from Jun 2003 to Dec 2010. The formula is: μ=i=1NXiN where N is the number of the month we count of the return and Xi is the total value of the monthly return. 2. Median The median is the value of the middle item of a set of items that has been sorted into ascending or descending order. In an odd-numbered sample...
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...University of Dhaka Members Profile : (i) Md. Ershadul Islam Id no: 41323024 E-mail: ershad1811@yahoo.com Phone: 01717-461080 Position: Manager (ii) Md. Masum Sarder Id no: 41323033 E-mail: masum.sarder@gmail.com Phone: 01913-135057 Position: Executive (iii) Abu Nasar Zahid-Al-Mahmud Id no: 41323008 E-mail: saadi013@yahoo.com Phone: 01912-027058 Position: Executive (iv) Mohammad Kabir Id no: 40916048 E-mail: jatissor007@yahoo.com Phone: 01811-421194...
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...What is Corporate Portfolio All of the assets included on the firm's balance sheet. For example, a real estate trust holds a portfolio of office rental properties. Also called investment portfolio. See also diversification Corporate Philosophy Markets are efficient The design of the portfolio as a whole should be more important than the selection of any particular security within the portfolio. The general rule is that Investors are risk averse. For a given risk level, an optimal combination of asset classes will maximize returns. Investment Style Passive Vehicle Style of investment Active Vehicle Investment Style Horizon (Long term Investment ) Life-cycle (often used in retirement plans) Asset Allocation Equities Growth Fixed Income Investments Capital Preservation Asset Allocation Asset-allocation is an attempt to provide investors with portfolio structures that address an investor's age, risk appetite and investment objectives with an appropriate apportionment of asset classes. Balance Fund Life-cycle (often used in retirement plans) Active Asset Selection Active asset selection strategies can be classified fairly broadly into four classes – Intrinsic valuation model relative valuation model technical analysis models Portfolio Optimization model How to Rebalance Your Portfolio Businesses are constantly assembling and adjusting their portfolios of assets in an attempt to increase the returns they earn and reduce the risks they face. For...
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...life cycle, and make a recommendation at which stage the average investor should consider financial investments. Provide support for your recommendation. • Assess how cultural differences in foreign countries impact investor asset allocations. Week 2 DQ 1 "Globalization" Please respond to the following: • From the e-Activity, analyze how national exchanges around the world are linked and suggest which exchange most significantly impacts the U.S. markets. Explain your rationale. • Assess the factor(s) contributing to the global consolidation of stock, bonds, and derivative exchange. Predict the impact to these exchanges in the future. Week 2 DQ 2 "Efficient Markets" Please respond to the following: • Analyze the most significant driver in an efficient market and whether or not you would characterize the U.S. markets as efficient. Provide support for your position. • Discuss how behavioral finance concepts, such as bias, may impact investor decisions and the efficiency of financial markets. Week 3...
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