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.
Student Answer: Professional management and diversification are the major reasons investors purchase mutual funds, as well as they are easy to invest in for beginning investors or those who lack large amount of money as required by other types of investments. Investment companies are employed with experienced and profession fund managers who research and devote a lot of time to finding the perfect securities for their investment portfolios. The diversification allows for gains, even in a loss, because one investment in a mutual fund can offset the loss of another by it’s gains. Basically, your investments are scattered around and offer somewhat of a safety net for your
The role of a corporate finance manager is to create value from the firm’s capital budgeting, financing, and net working-capital activities. They are ...
Ross, S.A., Westerfield, R.W., Jaffe, J. and Jordan, B.D., 2008. Modern Financial Management: International Student Edition. 8th Edition. New York: McGraw-Hill Companies.
[13]. Stephen A. Ross, 2002. Neoclassical Finance, Alternative Finance and the Closed End Fund Puzzle, European Financial Management, Vol. 8, No. 2, 2002, pp. 129-137
This paper will serve as a discussion on the topic of investment banking. In this paper the author includes various articles and thoughts that help to understand the background and principle of investment banking. This discourse will attempt to address this issue through explaining what investment banking is, introducing major investment bankers, and how investment banking affects our globally economy. Investment Banking Defined Investopedia (2008) stated this definition about investment banking, “A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
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.
... the public and private sector. It uses both the weak form and semi strong from to make decisions. When an investor is given both public and private information the investor would not be able to profit about the average investor even if he was provided with new information at any given time. These investors are given name such as insiders, exchange specialist, analyst and money mangers. Insiders are senior managers that have access to inside information of that company. The security exchange commission prohibits that allow of inside information use to achieve abnormal returns on investments. An exchange specialist can achieve above average returns with specific order information on a specific equity. Analysts can analyze whether an analyst opinion can help an investor achieve above average returns. Institutional money mangers work handle mutual funds and pensions.
Financial intermediaries are common across the entire financial world. A financial intermediary is an institution that borrows money from people who have saved and in turn makes loans to others, acting as a middleman between investors and firms raising money. Common institutions that conduct the intermediary actions are commercial banks, credit unions, insurance companies, mutual funds, and finance companies. These institutions are an integral part to the overall health and functionality of the world financial market.
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.
Mutual funds will let small investors have more choices than they would have when investing on an individual level. The money from several investors is invested in different companies so that the risk is minimized. The strategy in this type of investment is to assure that a profit is made from some of the businesses so that if one should fail, others will still do well. You should really research where your money will be going and what kind of track record the businesses have had in terms of gains before investing.
The intensely competitive, action-oriented, profit-hungry world of investment banking can seem like a bigger-than-life place where deals are done and fortunes are made. Investment bank includes but is not limited to bringing an established company to the market, by that I mean taking company with the capabilities but not capital of expanding, and raising money through other investors or the stock market (IPO) for a commission, I chose this field because of my personal experience with my father and his company, I’ve seen him go from starting off as a cold calling broker, to running a brokerage firm, to starting a brokerage firm, all the way to having his own investment firm. I feel like I would do better with jobs where you set your own hours and work at your own pace. A lot of the work is commission based so the more your work the more you make, this would also benefit me because it would drive me to work more, money is my motivation. To be hired you will need good people and communication skills, highly analytical skills, high ability to synthesize and high creative ability. You will also need experience in modeling, valuing companies, and financial accounting.
This paper will define and discuss five financial theories and how they impact business decisions made by financial managers. The theories will be the Modern Portfolio Theory, Tobin Separation Theorem, Equilibrium Theory, Arbitrage Pricing Theory (APT), and the Efficient Markets Hypothesis.
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.