Investment Banking EFGHremes
Introduction to the topic:
The topic we are approaching is Fund Management Companies; the job of those companies is to manage the funds or in simpler terms the money of the individuals or the corporations. They take the money and invest it through one of many different methods like buying shares in a promising company, for example. This is very simply what fund management companies do.
What we did is that we chose a practical example for a fund management company operating in Egypt to see what they are really doing. We chose EFG-HERMES to be our example. Throughout the paper we will discuss the company and its different investments concentrating on fund management job.
Executive Summary
In this paper we are discussing fund management companies using EFG-Hermes as an example. The paper can be summarized in the following points :
· Introduction about EFG-Hermes in Egypt.
· The mission and the objective of EFG-Hermes Asset Management aims to be the
leading investment manager for private and institutional portfolios in Egypt,
the Middle East, and North Africa.
· The five divisions of EFG-Hermes are Investment banking which prepares companies
for being listed; Securities brokerage which is for trading stocks; Private
equity which is a service in which it invests its own money in emerging and not
listed companies; fund management which is managing money of a group of people
(like for a bank); and finally portfolio management which is managing funds for
individuals or organizations.
· The investment strategy of the company is to provide investment management
excellence to its clients which entails the identification of each client's
return/risk and the desire of a suitable portfolio to match this profile, and
the policies for investments serves this strategy also.
Introduction
EFG
The Egyptian Financial Group (EFG) was established in 1980 as the first investment banking firm in Egypt. For more than 15 years it offered its clients a variety of services and was involved in a large number of privatization studies for the Egyptian government.
Block, S. B., & Hirt, G. A. (2005). Foundations of Financial Management (11th ed). The
Equity capital represents money put up and owned by shareholders. This money can be used to fund projects and other opportunities under the auspice of creating greater value. This type of capital is typically the most expensive. In order to attract investors, the firms expected returns must consummate with the associated risk ("Financial leverage and,"). To illustrate this, consider a speculative oil drilling operation, this type of operation would require higher promised returns than say a Wal-Mart in order to attract investors. The two primary forms of equity capital are 1) money invested into the business for an ownership stake (i.e. stock) and 2) retained earnings from past profits used to fund future growth through acquisitions, expansions and product development.
"Financial Management in the International Business." Hill: International Business: Competing in the Global Marketplace, Sixth Edition. : The McGraw−Hill Companies, 2007. . Print.
This process makes the investor partner in the share of the profits. Equity is the permanent investment by the party in the organization that is not to be repaid on the later stages by the company to the investor. The equity must have the business entity and it can be in the form of the business units as in the limited liability company or in the preferred stock corporation. The company can use this option by issuing the different types of stocks in the market to generate the funds and also issue the preferred stock with the common stock as when the dividend is released then preferred stock are entertain first of
In 1984, Mansueto founded Morningstar Inc., which provides independent investment research to individuals, financial advisors, and institutional advisors(Ferrell, Ferrell, & Hirt, 2015). Although they provide these services to financial and institutional advisors, their main focus is on individual investors. Mansueto found that the average investor often finds investing very confusing because there are a wide variety of investment choices. There are three types of investment choices: mutual funds, stocks, and bonds. Each of these three types of investment have thousands of options for investors to choose. A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term
Value Trust, an $11.2 billion mutual fund managed by Bill Miller III, and one of a family of funds managed by Legg Mason., a leading Global Asset Management Firm headquartered in Baltimore, Maryland has achieved uncanny success. The Fund invests primarily in large-cap equity securities, is benchmarked against the S&P 500, and as of 2005, has outperformed its benchmark for a record 14 consecutive years. This amazing streak has brought much attention to this highly rated fund and what exactly is behind its excellent success and management. An example of performance for 2001-2004 follows:
A investment that considers to be passive in securities that permits an investor to multiply his/her beginning capital investment on many securities all while earning profits.it consist of having power over securities by an investor along with active management by an investor over a certain period of time. The reason for the investment will be expected to be primarily for financial gain. During the course of this paper there will discussion trying to analyze a common portfolio including a beginning capital input of $10,000 given that the allocation to the portfolio. Also it will include certain investments started under the portfolio including their possible profit. This paper will consist of a table of their investment that has been offered for reference.
By Morningstar, Inc. concentrating more on mutual funds, rather than stocks and bonds would be a positive move for the business because they will be assisting more individual investors who are having a problem making a decision regarding how to invest (Ferrell, et al., 2016). Furthermore, mutual fund investments are the best investment for clients who are too busy to do their own investing in the market (Ferrell, et al., 2016).
[9] Stephen A. Ross, Randolph W. Westerfield, Jeffrey F.Jaffe and Bradford D. Jordan. Modern Financial Management, pp. 307-309;341.
Once an investment plan is devised and set into motion, asset management companies then monitor
Historical function of the investment banks in Malaysia. Discuss the function of banks as early as in the 50s-60s and make comparison with the 70s & 80s as well as what is new in the year of millennium.
For an organisation to rise fund, they usually tend to look at the stock market and capital market to do it so. This is two markets are usually seemed similar by the investors as they both contributes to the development of an economy. But there are significant difference between them. The capital market is a market that consist of stock market as well as the bond market. As a result, the capital market provides a long-standing finance using the debt capital and the equity capital. Capital markets divided into two sectors known as primary markets and secondary markets. The primary market is where securities are issued for the first time whereas the secondary market is where securities that have been already issued are traded among investors (Difference...
Block, S. B., & Hirt, G. A. (2005). Foundations of financial management. (11th ed.). New York: McGraw-Hill.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
I am currently majoring in Finance Management. Most of the time people think of finance as just managing money. However, finance is needed for so much more! The finance industry deals with starting businesses, developing new products, expanding markets, as well as everyday things like saving for retirement, purchasing a home, and even insurance. The stock market, asset allocation, portfolio analysis, and electronic commerce are all key aspects in finance. In this paper, I will explain how these features play a vital role in the industry, along with the issues that come with these factors.