...Global strategy of LG Electronics as a leading Korean company Tomikazu Hiraga Senior research Fellow NLI Research Institute Economic recovery in advanced countries including Japan is still sluggish, although corporate financial performance has been recovering gradually. And companies whose business activities in emerging countries experiencing an economic boom account for a larger proportion tend to show better financial performance. Leading Korean companies have a larger presence in the world market and attract considerable attention. I will focus on LG Electronics, Inc., a leading company ranking with Samsung Electronics Co., Ltd. in the world’s electrical and electronics industries, with the largest market share in home appliances markets in important emerging countries, such as India, Brazil, and Indonesia, and relatively advanced management methods including corporate governance, which are highly valued, and will discuss features or important points of its global management and personnel strategy in this article. (Reference: Exchange rates as of August 5, 2010 were as follows. The Japanese yen/Korean won foreign exchange rate was approximately ¥0.074 to the Korean won. The Japanese yen/Indian rupee rate was approximately ¥1.87 to the Indian rupee. ) Leading Korean zaibatsu—The LG group The Korean zaibatsu (chaebol), a unique large companies group, is very influential in Korea’s corporate sector. Top 28 companies by market capitalization other than public corporations account...
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...Global strategy of LG Electronics as a leading Korean company Tomikazu Hiraga Senior research Fellow NLI Research Institute Economic recovery in advanced countries including Japan is still sluggish, although corporate financial performance has been recovering gradually. And companies whose business activities in emerging countries experiencing an economic boom account for a larger proportion tend to show better financial performance. Leading Korean companies have a larger presence in the world market and attract considerable attention. I will focus on LG Electronics, Inc., a leading company ranking with Samsung Electronics Co., Ltd. in the world’s electrical and electronics industries, with the largest market share in home appliances markets in important emerging countries, such as India, Brazil, and Indonesia, and relatively advanced management methods including corporate governance, which are highly valued, and will discuss features or important points of its global management and personnel strategy in this article. (Reference: Exchange rates as of August 5, 2010 were as follows. The Japanese yen/Korean won foreign exchange rate was approximately ¥0.074 to the Korean won. The Japanese yen/Indian rupee rate was approximately ¥1.87 to the Indian rupee. ) Leading Korean zaibatsu—The LG group The Korean zaibatsu (chaebol), a unique large companies group, is very influential in Korea’s corporate sector. Top 28 companies by market capitalization other than public corporations account...
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...run. In 2000 Black and Decker Corporation was still reeling from the financial and strategic problems stemming from the company's acquisition of Emhart Corporation in 1989. In late 1998 Black & Decker management celebrated the completion of an almost decade-long effort to divest nonstrategic business gained through its 1989 acquisition of Emhart Corporation and expected the company to enter a long-awaited period of growth as its entire management refocused its attention on its core power tools, plumbing, and security hardware business. Archibald believed that "This portfolio restructuring will allow us to focus on core operations that can deliver dependable and superior operating and financial results." However the portfolio restructuring did little to improve the market performance of the company's securities. Yet Archibald and the management continued to express confidence that the company's streamline portfolio would allow Black & Decker to achieve revenue and earnings growth that the market would find impressive. So far the 1998 divestitures have not produced steady increases in the company's stock price, but look promising for the future due to the efforts to refocus efforts on the successful power tools line. Strategic planning team evaluation Over the years, Black & Decker has branched off into many different directions in order to gain as much market share as possible. The diversification program in the 1980s produced mixed results for shareholders, and later...
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...work and needs to plan accordingly. One main question that is always a difficult one to answer is how long one needs to work before they can comfortably stop working and rely on their financial portfolio to take care of expenses after work. In order to analyze these questions, a deterministic model of an investment portfolio was created and stochastic modeling was used to determine the likelihood of being able to accumulate the necessary finances over the desired period of time. Quantitative Analysis: 1. Using the given deterministic model, the annual outflows were estimated from the retirement portfolio over the retirement years and the estimated return on the account was also calculated. It was determined that under these basic assumptions of salary and portfolio growth rate the portfolio could expect to grow to $452,900 within thirty years. However, this assumed a fixed salary growth rate of 5% as well as a 4% annual investment rate. Given the high rate of inflation and the projected expenses after retirement, it was calculated that if this money was to last for the retirement, then even pulling out $50,000 per year in expenses would cause the account to run out after just a few years. 2. Adjusting the annual rate to 8% from 4% had a major effect. Although the portfolio fell short of the one million dollar goal by only reaching $853,633, this was a major effect as it allows the individual the ability to pull $100,000 each year from this account and still sustain...
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...Kochman’s and Badarinathi’s mathematical case for upside deviation deals with portfolio upside deviations being divided by a market’s upside deviations to so show the resulting ratio and how it facilitates other tests for positive or negative skewness. The article discusses how CAPM is inappropriate for the evaluation of portfolios given that is not only assumed that the returns on distributions are symmetrical, but that the beta (performance and return-to-risk ratios) underestimates the risk of larger numbers of mutual funds. Kochman and Badarinathi needed to answer two questions; can upside deviation be the means for portfolio evaluations and can this be done by taking the upside deviation of portfolios and divide those figure by the upside deviation of the market? Kochman and Badarinathi believe that to make a case for upside deviation as a means for portfolio evaluations is to take the upside deviation of the portfolio(s) and dividing it by the market(s) upside deviation. This would result with a ratio that facilitates another test of positive or negative skewness. To test whether the ratio of portfolio-to-market upside deviations as a success, a test on fund returns would need to be conducted to ensure a meaningful difference between upside deviations, portfolios, and markets. The overall findings showed that the relationships between low betas and low upside volatility appeared to be weaker than the relationships between high betas and high upside volatility. In addition...
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...Rock, Paper, Scissors, and Other Investment Techniques (UOP) FIS 240 Week 5 DQs (UOP) FIS 240 Week 6 CheckPoint: So Many Businesses, So Little Money PART 1 OF 2 (UOP) FIS 240 Week 6 CheckPoint: So Many Businesses, So Little Money PART 2 OF 2 (UOP) FIS 240 Week 6 Assignment: Analyze This (UOP) FIS 240 Week 7 DQs (UOP) FIS 240 Week 7 CheckPoint: Income that Sticks PART 1 OF 2 (UOP) FIS 240 Week 7 CheckPoint: Income that Sticks PART 2 OF 2 (UOP) FIS 240 Week 8 CheckPoint: Lifetime Investment Matrix PART 1 OF 2 (UOP) FIS 240 Week 8 CheckPoint: Lifetime Investment Matrix PART 2 OF 2 (UOP) FIS 240 Week 8 Assignment: Living the Easy Life (UOP) FIS 240 Capstone Discussion Question (UOP) FIS 240 Final Project: Investment Policy and Portfolio Evaluation (UOP) ____________________________________________________ FIS 240 Week 1 CheckPoint: Is Time on My Side (UOP) For more course tutorials visit www.tutorialrank.com Resources: Appendix D and the Time Value of Money multimedia (enter into the Axia College student webpage first then copy and paste the link into the open browser) TUhttps://ecampus.phoenix.edu/secure/aapd/UBAM/Libraries/Flash/TVM.swfUT. Due Date: Day 5 [post to the Individual forum] Complete your responses to this week’s CheckPoint in Appendix D. Post the completed...
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...LG targets to improve market share in home entertainment segment Published on: April 26, 2011 - 23:46 More in: * Business MUMBAI: Buoyed by surging income levels in the country, Korean consumer durables manufacturer, LG Electronics, is eyeing a 32 per cent market share in home entertainment products and Rs 20,000-crore revenue (from India) by end-this year. “Presently, we have a 29 per cent market share in home entertainment products in India and expect to up it to 32 per cent by December 2011,” LG Electronics India’s managing director, Mr Soon Kwon, told PTI here. “We are targeting around Rs20,000-crore revenue by end-2011 as against Rs 16,000-crore last year. We are growing fast in India and will continue to grow in the market,” he said. LG Electronics India has nine products in the segment and plans to launch more models in this segment in the coming days. “India is one of our key markets. Every year, we are launching some (new) models of home entertainment products in India. We will continue to launch more models in the coming days,” he said. Around 20 per cent of the company’s revenue comes from rural India and it plans to increase this by beefing-up its distribution by opening more outlets, he said. Presently, the company has 20,000 outlets pan-India. LG Electronics competes with Samsung, Philips and Whirlpool in the domestic market. India contributes 6 per cent to the company’s global revenue, he said, adding, “we expect it to double to 12 per cent in...
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...1.0 Introduction of LG Electronics Inc. LG Electronics Inc. is a South Korea multinational electronics company which is also known as the global leader and technology innovator in consumer electronics. The LG Company was a merger of two Korean companies, Lucky and Goldstar, from which the “LG” abbreviation was derived. (Mariush,2012) The company’s headquarter is located in Yeouido-dong, Seoul and the flagship subsidiary of the LG Group. LG has a global sales of KRW (Korean Won) 54.26 trillion which is equal to USD 49 billion in the year 2011. The company operates its business with four business units: mobile communication, air conditioning & energy solution, home entertainment and home appliance. (LG, 2012) It has 75 subsidiaries operates around the world that design and manufacture its products. LG is the world’s second largest flat screen television-set maker after Samsung Electronics Co. (Lee, 2012) Home Entertainment The LG Electronics which is also known as the top global players in home entertainment produces flat panel displays, audio players, video products, monitors, commercial displays and security systems for the consumers and also the commercial markets. LG is not only focusing on creating full-features devices but it is also emphasizing on following the technology boundaries to improve the products. Mobile Communication LG has committed to provide the best ever user experience to expand the next generation of communication by inventing new technologies...
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...Modern Portfolio Theory in the Modern Economy: MPT During the Credit Crisis 0f 2008 Abstract There are various theories of risk and return as it pertains to measuring and predicting investment return in a portfolio- one of the oldest and most prominent being Modern Portfolio Theory .An example of a hypothetical portfolio utilizing the principles of MPT invested during the credit crisis of late 2008/early 2009 will be utilized in part. In direct application, does Modern Portfolio theory hold strong during a major financial crisis? Past research will be compared to present the mechanics and applications of MPT order to answer the questions poised and to create hypothetical portfolios based on past fund performance during the time period of 2007 -2010. It is expected that a portfolio using MPT would not have performed significantly better than any other less diversified investment. Contents Introduction……………………………………..........................................................................4-7 Credit Crisis Thesis Statement Modern Portfolio Defined Prior Research Prediction Method…………………………………………………….........................................................8-9 Parameters/ Source of Portfolios Results……………………………………………………......................................................10-19 A. Application/ graphs Conclusion…………………………………………...............………………………............19-20 Restatement of Thesis Discussion of Results Limitations Recommendation References……………………………………………………………………...
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...Premium และคำนวณ Standard Deviationเพื่อนำไปคำนวณหา Sharpe Ratio ที่มีอัตราส่วนที่สูงที่สุด ซึ่งอธิบายถึงผลตอบแทนที่ถูกปรับด้วยความเสี่ยง ที่ดีที่สุด เมื่อได้ทำการวิเคราะห์และคำนวณ Sharpe Ratio แล้ว พบว่า หุ้นที่เหมาะสมที่จะทำการลงทุนเพิ่ม ได้แก่ Pioneer Gypsum โดยลงทุนในสัดส่วน 4% จึงทำให้การลงทุนในตลาดเป็น 96% เนื่องจากเป็นสัดส่วนที่ทำให้ Sharpe Ratio มีค่าสูงที่สุด คือ 0.4702 ซึ่งถือได้ว่าเป็นการกระจายการลงทุนที่ทำให้ความเสี่ยงลดลง ซึ่งสอดคล้องกับทฤษฎี Modern Portfolio Theory ของ Harry M. Markowitz (1952) ที่กล่าวไว้ว่า “Don’t put all your eggs in one basket” สรุปรายละเอียดของ Mini-Case : John & Marsha on Portfolio Selection John ทำหน้าที่บริหาร Portfolio ซึ่งมีมูลค่า 125 ล้านดอลลาร์ของนักลงทุนอยู่ เขาปรึกษากับ Marsha เกี่ยวกับปัญหาของการบริหารจัดการหุ้นใน Portfolio ของเขา โดย John คิดว่าที่ผ่านมาผลตอบแทนจาก portfolio ที่เขาดูแลอยู่นั้นมักจะใกล้เคียงกับอัตราผลตอบแทนของตลาดและอิงจากกราฟ S&P 500 market index ที่จัดทำขึ้น เขาจึงรู้สึกว่าการบริหารของเขาอ้างอิงแต่กับตัวเลขของตลาดมากเกินไป เขาอยากจะบริหารจัดการ portfolio เสียใหม่ให้มีความเป็นตัวของตัวเองมากขึ้น และได้รับผลตอบแทนที่สูงขึ้นกว่าอัตราผลตอบแทนของตลาด เพื่อทำให้การทำงานของเขามีประโยชน์ต่อลูกค้ามากขึ้น โดยเขาเลือกบริษัทที่ราคาตลาดของหุ้นต่ำกว่ามูลค่าที่ประเมินได้ (Undervalued) และที่ราคาตลาดของหุ้นสูงกว่ามูลค่าหุ้นที่ประเมินได้ (Overvalued) ามาส่วนหนึ่ง โดยบริษัทที่เขาคาดว่าน่าจะมีมูลค่า Undervalued และสมควรซื้อมากคือบริษัท Pioneer Gypsum และหุ้นของ Global mining นั้น Overvalued จึงไม่สมควรซื้อโดยข้อมูลต่างๆของทั้ง2บริษัทที่เขาหามาได้มีค่าตามตารางนี้ ...
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...Judge the Risk by Portfolio When the investors put their money into the stock market, it means that they must take the risk of the stock market, because risk is one of the natural qualities of the stock market. One company easy to get a poor performance and its stocks will go down. Therefore, there will be no way to complete avoid risk, but judge it. In finance, risk is best judged in a portfolio context. Because the possibility that many companies gets serious performances, and their stock price go down at the same time is lower than for only one company. This essay will discuss that why the portfolio context is the best way to judge the risk in the finance market. The first part will introduce the basic theories for portfolios. The methods of measuring risks and value of the portfolio will be explained in the second part to demonstrate that why it is better select portfolios. The third part will give the example of family groupings on performance of portfolio selection in the Hong Kong stock market. The conclusion will be given at the end of the essay. Firstly, the theory of portfolio and the five suppositions of portfolio selection need to be explained before the following discussion of the value of portfolios. The article ‘Portfolio Selection’, which was issued on Journal of Finance in 1952 and the book ‘Portfolio Selection: Efficient Diversification of Investments’ which was published in 1959 was known as the opening if the modern portfolio theory. The author of these...
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...long haul contributing is the conservation of capital. Warren Buffett, ostensibly the world's most excellent mogul, has one standard when contributing - never lose cash. This doesn't mean you ought to offer your venture property the minute they enter losing region, yet you ought to remain definitely mindful of your portfolio and the losses you're ready to persevere in an exertion to expand your riches. While it is difficult to stay away from danger completely when putting resources into the business sectors, these five strategies can help protect your portfolio. One of the foundations of Modern Portfolio Theory (MPT) is diversification. In a business downturn, MPT pupils accept a generally expanded portfolio will beat a thought one. Speculators make deeper and all the more extensively broadened portfolios by owning countless in more than one asset class, along these lines decreasing unsystematic danger. This is the hazard that accompanies putting resources into a specific organization instead of deliberate danger, which is the danger connected with putting resources into the businesses by and large. As per some money related specialists, stock portfolios that incorporate 12, 18 or even 30 stocks can take out most, if not all, unsystematic danger. Shockingly, methodical danger is constantly present and can't be differentiated away. On the other hand, by including non-associating asset classes, for example, securities, items, monetary standards and land to a gathering...
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...Fidelity Large Cap Stock Fund and S&P 500 are similar funds. These two funds heavily invest in large market capitalization company common stock, topping 80% of its entire portfolio. Fidelity Large Cap Stock Fund consists of normally 11 different sectors for equities listed in highest portfolio weight with first five sectors making 80% of the portfolio: • Financials • Information Technology • Health Care • Energy • Industrials • Consumer Discretionary • Consumer Staples • Telecommunication Services • Materials • Utilities • Other Current year-to-date performance of the Fidelity Large Cap Stock Fund (FLCSX) was overall positive at 16.24% year-to-date return. The financial sector contributed and played a big part in making the successful performance this year resulting from a good portfolio mixture of securities and its positive gain. This mixture consists of some of the high return securities such as; JPMorgan Chase, MetLife and Charles Schwab returning, 29.38%, 48.68% and 54.99% respectively. The historic performance has shown that both MetLife and Charles Schwab performed well responding to the rising interest rates, and these two companies did not fail to positively react to the recent increase in interest rates. Both companies’ share price went up by more than 20%. Thanks to the uptick in interest rates due to many speculation of slow economy recovery in the market. S&P 500 also had a strong year-to-date return at 13.82%. Both FLCSX and S&P 500 topped...
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...price- $36.29 52 week range - $30.82-36.90 Expenses – 0.5% Management fees 0.38% Other expenses – 0.12% Type of Fund: open-ended fund. Class R shares are generally available only to retirement plans. Class R-5 are generally available only to fee-based programs or through retirement plan intermediaries. No dealer compensation is paid from fund assets on sales of Class R-5 or R-6 shares. I like that the expenses are low. It is a lower risk fund. Although it is a growth fund, it doesn’t seem to fluctuate that much. American Funds Capital World G/I R5 (RWIFX) 36.29 0.08(0.22%) Nov 27 Add to Portfolio Risk as of Oct 30, 2012 Get Risk for: Risk Overview Morningstar Risk Rating: 3 Number of Years Up 7 Number of Years Down 2 Best 1 Yr Total Return(Dec 30, 2003): 39.47% Worst 1 Yr Total Return(Dec 30, 2008): -38.21% Risk (Modern Portfolio Theory) Statistics 3 Years Statistic RWIFX Category Alpha (against Standard Index) 4.13 5.19 Beta (against Standard Index) 0.87 0.85 Mean Annual Return 0.68 0.76 R-squared (against Standard Index) 95.16 86.55 Standard Deviation 17.40 17.88 Sharpe Ratio 0.47 0.53 Treynor Ratio 7.89 10.04 5 Years Statistic RWIFX Category Alpha (against Standard Index) 2.91 2.36 Beta (against Standard Index) 0.87 0.89 Mean Annual Return 0.02 -0.03 R-squared (against Standard Index) 96.30 89.30 Standard Deviation 20.80 22.04...
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...The performance evaluation employs different methods namely Sharpe, Treynor, and Jensen indices. Analysis revealed that different methods yield different result. In order to enrich evaluation, Modigliani-risk adjusted performance metric and qualitative approach were included in the analysis. By using the mix criteria, it was found that the best investment is Schoder 90 Plus Equity Fund followed by Manulife Dana Saham and Mandiri Investa Dynamic Equity. This findings show that even though stock market performed negatively over the period, stock-based mutual fund may yield slightly better than the market. Key Words: Mutual Fund, Sharpe Index, Treynor Index, Jansen Index, M2. I. INTRODUCTION This paper aims at measuring portfolio performance of stock-based mutual funds from three different investment manager over the period of January 1, 2015 – July 30, 2015. Three randomly mutual fund was chosen, namely Schoder 90 Plus Equity Fund (Schroder Investment Management Indonesia), Mandiri Investa Dynamic Equity (Mandiri Manajemen Investasi), and Manulife Dana Saham (Manulife Aset Manajemen Indonesia). In the first step, all mutual funds data evaluated using Sharpe, Treynor, and Jensen indices. In the second step, other methods were introduced to test whether alternative evaluation give similar result. To conclude, all result from step one and step two evaluation would be presented in a radar or web chart to show relative performance of each mutual fund with respect...
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