Monday, January 7, 2008
Asset allocation
The different asset classes are stocks, bonds, real-estate and commodities. The exercise of allocating funds among these assets (and among individual securities within each asset class) is what investment management firms are paid for. Asset classes exhibit different market dynamics, and different interaction effects; thus, the allocation of monies among asset classes will have a significant effect on the performance of the fund.
Fund Manager
It refers to both a firm that provides investment management services and an individual(s) who directs 'fund management' decisions.
Asset Management
The term asset management is often used to refer to the investment management of collective investments, whilst the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management often within the context of so-called "private banking".
Investment Manager
It is the professional management of various securities (shares, bonds etc) assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds) .
Options for joint programmes
There are three types of Fund Management: Parallel, Pooled, and Pass-Through.
These options can also be combined.
Parallel Fund Management:
This fund management option is likely to be the most effective and efficient when interventions by participating UN organizations are working towards common results, but with different national, sub-national and/or international partners. Under this option, each organization manages its own funds
A good example of a possible programme for parallel fund management would be where several agencies are supporting disaster recovery in a particular province but with separate ministries and focal points. The parallel fund management modality might be more suitable when working with sub-national partners if local capacities are limited or the partner’s functions are narrowly defined.
Pooled Fund Management:
This fund management option is likely to be the most effective and efficient when participating UN organizations work for common results with a common national or sub-national partner (e.g. Department, provincial office, NGO) and/or in a common geographical area.
Pass-Through Fund Management:
This option can be used when two or more UN organizations have developed with partners a joint programme which is to be fully or partly funded by donors, and the donor(s) and participating UN organizations jointly agree to channel the funds through one UN organization
These options can also be combined.
Parallel Fund Management:
This fund management option is likely to be the most effective and efficient when interventions by participating UN organizations are working towards common results, but with different national, sub-national and/or international partners. Under this option, each organization manages its own funds
A good example of a possible programme for parallel fund management would be where several agencies are supporting disaster recovery in a particular province but with separate ministries and focal points. The parallel fund management modality might be more suitable when working with sub-national partners if local capacities are limited or the partner’s functions are narrowly defined.
Pooled Fund Management:
This fund management option is likely to be the most effective and efficient when participating UN organizations work for common results with a common national or sub-national partner (e.g. Department, provincial office, NGO) and/or in a common geographical area.
Pass-Through Fund Management:
This option can be used when two or more UN organizations have developed with partners a joint programme which is to be fully or partly funded by donors, and the donor(s) and participating UN organizations jointly agree to channel the funds through one UN organization
Money Market
Financial institutions can use short-term savings to lend out in the form of short-term loans like
-Credit on open account
-Bank overdraft
-Short-term loans
-Bills of exchange
-Factoring of debtors
-Credit on open account
-Bank overdraft
-Short-term loans
-Bills of exchange
-Factoring of debtors
Capital Market
In Capital Market long-term funds are bought and sold like
-Shares
-Debentures
-Long-term loans, often with a mortgage bond as security
-Reserve funds
-Shares
-Debentures
-Long-term loans, often with a mortgage bond as security
-Reserve funds
Capital
Capital is the money which gives the business the power to buy goods to be used in the production of other goods or the offering of a service.
Sources of capital
-Capital market
-Money market
-Borrowed capital
- Own capital
Sources of capital
-Capital market
-Money market
-Borrowed capital
- Own capital
What includes Finance?
Finance incorporate any of the following:
The study of money and other assets;
The management and control of those assets;
Profiling and managing project risks;
The science of managing money;
As a verb, "to finance" is to provide funds for business or for an individual's large purchases (car, home, etc.).
The activity of finance is the application of a set of techniques that individuals and organizations (entities) use to manage their money, particularly the differences between income and expenditure and the risks of their investments.
The study of money and other assets;
The management and control of those assets;
Profiling and managing project risks;
The science of managing money;
As a verb, "to finance" is to provide funds for business or for an individual's large purchases (car, home, etc.).
The activity of finance is the application of a set of techniques that individuals and organizations (entities) use to manage their money, particularly the differences between income and expenditure and the risks of their investments.
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