Monroe Doctrine Essay Example | Topics and Well Written Essays - 2500 words

Monroe Doctrine - Essay Example The Monroe Doctrine was communicated by President James Monroe in 1823 inside his yearly location to the Congress. The principle thought of Monroe’s message was the accompanying: until European forces doest not meddle with the U.S. interests in Western Hemisphere, the United States would not meddle with European circles of enthusiasm for Eastern Hemisphere. More or less the Doctrine expressed that, â€Å"The United States would not meddle in European wars or inward issues, and anticipated that Europe should avoid American affairs.† Authors of the Doctrine underlined that the report must be seen as hostile to colonialist declaration expected to forestall further colonization of South and Latin American nations by European states, for example, Spain, France and Russian Empire. In its turn, the U.S. wanted to keep up impartial situation in any conflict occurring in Europe or European provinces in Eastern Hemisphere. Subsequently, any military clash occurring between an Eur opean nation and its previous province in Americas would be seen as activity antagonistic toward the U.S.: â€Å"But with the Governments who have pronounced their autonomy and look after it, and whose freedom we have †¦ recognized, we were unable to see any intervention to persecute them, or controlling †¦ by any European force in some other light than as the indication of a hostile demeanor toward the United States†. (Monroe Doctrine, 1823). Clearly, the Doctrine was a sufficient reaction to the political circumstance in Western Hemisphere. In 1815 the Spanish Empire in the New World crumbled. During just 7 years, from 1815 to 1822, Chile, Peru, Colombia and Argentina battled their autonomy. These recently developed states looked for the U.S. acknowledgment of their autonomy, and general conclusion in the U.S. was for the most part positive on this issue (Dent, 1999). Simultaneously the U.S. had arrangements with Spain attempting to buy Florida. The exchanges were fruitful, and once Florida was bought the Monroe organization perceived Chile, Argentina, Peru, Mexico and Colombia. Obviously, this progression might be considered as the main indication of new U.S. arrangement in Western Hemisphere. Europe quickly responded to the U.S. conduct. France and Spain consolidated with an end goal to reestablish their lost impact on American states. This exertion was restricted by the UK government which was not ready to permit France recapture its previous impact in America: All crafted by Wolfe, Chatham and other eighteenth-century British legislators to get France out of the New World would be fixed, and France would again be a force in the Americas(Monroe Doctrine, 2005). However, backing of the Holy Alliance (Prussia, Austria and Russia) was sufficient for the U.S. also, UK to genuinely think about the danger. Looking for help in its endeavors to keep France out of Americas - the consequence of almost century of UK endeavors - British government proposed to the U.S to partner and caution off both Spain and France from new mediations in the New World. Be that as it may, the disposition of U.S. government toward the UK proposition was vague with T. Jefferson and J. Madison, Monroe's prestigious ancestors, supporting it and John Q. Adams, Secretary of the State, restricting it for the most part because of worry that Mexico expected to stretch out its impact to Oregon and furthermore because of ongoing conciliatory clash with the Russian Empire (over the northwest shoreline of North America). During the gathering of Cabinet that occurred on November 7, 1823, Adams persuaded the other legislators to

Law And Practice free essay sample

In this theme, we will attempt to get some answers concerning bankrupt exchanging and how it is occurred and keeping in mind that Company becomes wiped out what are the obligations for executives so as to spare unbound loan bosses. We will likewise discover how chiefs become obligated for their activity with respect to wiped out exchanging and in the event that they penetrate any law for wiped out exchanging what are the results they need to endure and furthermore law has given a few barriers for ruined exchanging for executives so as to stay away from punishment. S9 characterizes an executive of an organization an individual who is named to the situation of a chief or exchange chief paying little mind to the name given to their position. Overseeing executive is liable for by and large day by day business. Non official executives have low maintenance association with the organization. They take an interest executive gathering or meeting of board panels. They screen the exercises of the supervisory group bringing a free view regularly an outside or wide point of view to the board’s thoughts. We will compose a custom paper test on Law And Practice or on the other hand any comparative subject explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page They think about the enthusiasm of the organization and general group of investors. Indebted exchanging: In request to address the topic of wiped out exchanging, we will discover when organization gets wiped out. Under s95A meaning of indebtedness is respected when a Company incapable to pay its obligation when it gets due. Normally Insolvency isn't controlled by taking a gander at the accounting report of an organization and the excess of benefits over liabilities. It accentuates on income which is called â€Å"cash stream test†. Organizations may encounter the two kinds of bankruptcy all the while. On the off chance that we see the Powell V Fryer[2001] SASC 59, the Judge decided that from Companies monetary position, indebtedness must be determined that it ought not look just money asset yet additionally to cash. For this situation we found while organization delivered profits and went into liquidation and got wiped out. In the event that an organization has not many resources for pay its lenders while the organization got indebted and this bankrupt exchanging segment assists with securing loan bosses by lifting the partnership shroud and put an obligation on chiefs to forestall wiped out exchanging while there is a sensible ground they can’t pay its obligation. The chiefs turned out to be by and by obligated for its obligation while organization got ruined. Before seeing if chiefs penetrate any law for wiped out exchanging or not under s 588G, we take a gander at the instance of Daniels V Anderson (1995) 13 ACLC 614. The court held that for organization business and funds they ought to acquaint themselves and made asks and checking the executives. With respect to the executives chiefs must be genius dynamic and could be accomplished through: they need to get data about company’s matter. Participation of meeting, they ought not depend on others and make their own asks. In dynamic procedure they need to take an interest. For this situation we see, Susan is simply depend on William and doesn’t go to standard gathering. Sarah likewise depended on William as she is his better half and never addressed of exercises done by William. Just Jack is the dynamic individual who went to meeting and worked appropriately till July 2008. Because of disease, Jack chose to leave and he couldn’t go to meeting. Under s203A executive can provide for its company’s enrolled office and furthermore to inform the ASIC under s205A (1) (2) however he neglected to do as such. It is director’s obligation to forestall bankrupt exchanging under s 588G if there is sensible ground that organization won't have the option to pay its due and get wiped out. Executives are controlling administration and they have capacity to forestall obligation while acquired. Under s 295(4) (c) director’s commitment to pronounce company’s budget report whether there are any sensible grounds, organization will have the option to pay its obligation as when it is expected and payable. For this situation we found that William deludes different chiefs just as announcement of budget report. Likewise we can utilize Morley v. State wide Tobacco Services Ltd (1992) 8 ACSR (305) case for this as subsequent to biting the dust chiefs spouse, wife who is likewise an executive let her child to proceed with business and became disappointment however wife, didn’t take an interest to maintain the business and depend on child, court saw as liable of wife. As Sarah additionally didn’t take an interest for maintaining the business and depended on her better half William. As indicated by this case Sarah would be at risk. Be that as it may, we look more subtleties for indebted exchanging. Presently the inquiry who is at risk for this obligation of bankrupt exchanging? There are four protections with respect to bankrupt exchanging for executives. Safeguards: Under s 588H , Directors who negate this area, have four protections accessible. S588H (2), during the obligation brought about, chiefs protections to build up: Reasonable ground to expect organization was dissolvable despite the fact that the obligation or some other obligation during that time was acquired and would stay dissolvable. Likewise chiefs accept that organization was dissolvable and would remain so. Likewise we can utilize the instance of Metropolitan Fire Systems Pty Ltd V Miller (1997) 23 ASCR699, The court held that Company’s three executives couldn’t build up s588H(2) safeguard, their desires for dissolvability depended on hopefulness with respect to the company’ future. These desires depended on want to think not equitably sensible desires. From this case we found that the company’s circumstance was going to more regrettable and there was no sign that it was dissolvable. Along these lines, executives can’t get safeguard from this segment. Under s588H (3), In request to get protection from this area, executives needs to set up various issues. The executives must demonstrate when the obligation was acquired, they had sensible grounds to accept and believed, that a skillful and a dependable individual was liable for giving sufficient data to chiefs whether the organization was dissolvable and the other individual was satisfying his duty under s588H(3)(a). Chiefs additionally demonstrate that executives expected, other individual who is giving data to executive that the organization was dissolvable and would stay dissolvable despite the fact that it brought about obligation or some other obligation during that time s588H(3)(b). In this protection we can utilize ASIC v Plymin, Elliott and Harrison (2003) VSC 123 (No 1) (Victorian Supreme Court), The Judge held that Plymin, Elliott and Harrison had penetrated s588G by neglecting to stop obligation while wiped out. With respect to their guard for ss588H (2) or (3). The court discovered neither Plymin nor Elliott had demonstrated any of the safeguards in s 588H. Elliott didn't have sensible grounds to accept that others were satisfying the duty of giving sufficient data to him about company’s money related position and the data he had gotten didn't give him sensible grounds to accept the organizations were dissolvable and would remain and they saw as blameworthy. On the off chance that we look our case, we found that William was a capable individual and a Managing executive. He offered data to Susan who trust him and disclosed to her that the company’s position is strong and no should be stressed. Then again Sarah is his significant other and this is the relationship of a couple. As a spouse, she generally depended on him and never poses any inquiry as she likewise confides in him. From this point, we don’t have a lot of information whether Sarah, she thinks about company’s budgetary position or not. According to the data gave, Sarah and Susan both can get protection from this segment. Jack is wiped out and doesn’t have any information on it however he was attempting to leave according to strategy. At this stage, Sarah and Susan can get guard from this area. Under s588H(4), there is another protection for chief who is missing from the board because of sickness or for other valid justification while the organization causes obligation additionally didn’t take part in the administration of the organization. The instance of Tourprint International Pty ltd V Bott (1999) NSWSC 581, the court held that there is no â€Å"good reason† from missing of the executives just not partaking in overseeing organization business. Indebted exchanging arrangement requires chief inclusion with the administration during money related challenges. The court held at risk to Bott. For this situation, we found that Jack was dynamic before his perilous ailment, he couldn’t go to any executive gathering so there is solid explanation that Jack can get barrier from this segment however William doesn’t get any protection moreover. For Susan, she didn’t go to executive gathering and Sarah never went to any executive gathering as well, them two are depended on William. For Sarah, she may get barrier as she doesn’t have any information on the company’s budgetary circumstance whether it will be bankrupt or not and didn’t go to meeting as she was occupied with her business as we expect. Since she is constantly occupied with her business. In any case, for Sarah, she doesn’t have any valid justification to be missing from meeting however she additionally didn’t go to meeting as she never went to meeting. In this way, William and Sarah both won't get any safeguard in this segment. Under s588H(5), Directors can make sensible strides so as to forestall company’s obligation by delegating an intentional executive to the organization. For this situation we don’t see any of this means occurred and furthermore there is no data of it. So we accept that they didn’t select any intentional organization. Accordingly, there is no resistance of this area for chiefs. Results of penetrates of bankrupt exchanging There are number of outcomes may spill out of a contradiction of s588G. There will be respectful, remuneration procedures and criminal allegations on chiefs. Common punishment: Within the common punishment, the court may preclude an individual from dealing with an enterprise or forcing a monetary punishment request which is up to $200,000. 00.

Dilemma of investment in mutual funds in pakistan - Free Essay Example

Chapter 1 Introduction 1.1 Introduction 1.2 Purpose of the Study 1.3 Research Objective 1.4 Research Methodology 1.5 Data Sources 1.INTRODUCTION 1.1 Introduction Mutual funds can play a significant role in the growth of an economy of any country. Mutual funds are a preferred investment destination for any individual/ organization as the fund houses offer not only the expertise in managing funds but also a host of other services. Not too many years ago, mutual funds were simply broad-based investment instruments created to simplify the details involved in investing in separate securities. Mutual funds also provided a greater measure of safety through broad diversification and the kind of top notch professional management that is generally out of reach for the small shareholder. Today, however, mutual funds are well specialized and present almost limitless diversity. The types of mutual fund portfolios available run the range from conservative to aggressive, from stocks to bonds, from domestic to international portfolios, from taxable to tax-free, and from virtually no-risk money market funds to high-risk options funds (Jacobs, 2001). If we come across at mutual fund market of a developed country, we can see that their investment in the mutual fund industry is higher as compared to their bank deposit base, which shows the potential of growth of mutual funds industry in Pakistan. This comparison with other countrys Asset Management Companies (mutual funds) indicates that Pakistans Asset Management companies are not playing the role that it should play. This gives rise to many questions in ones mind. For instance Why are the Pakistans Asset Management Companies not doing well and Why Pakistans Asset Management Companies are not that much competent? The reason is that mutual funds industry in Pakistan is still in its immature stage and investment options are limited to only equity, government security funds, fixed income and money market Funds. With the maturity in the industry and by the passage of time, the investors may have the options to diversify investments into commodities, real estate and other avenues. Today, the greatest challenge faced by the Asset Management Companies is the lack of awareness about the Mutual Fund products by general public. Lack of awareness by the individuals for mutual funds is a dilemma. The reason is that people dont think out of the box. They dont go for any other avenue to keep or save money except banks and on the other hand banks invest in different avenues such as mutual funds, TFCs, stocks, Government bonds, treasury bills etc. So the question arise that why do the individuals always invest their money in banks; why do they dont want to invest other than a bank like in mutual funds. Investing in mutual funds can give them better returns as compared to the banks. The reason is that the individuals are unaware of the better returns, benefits and security they can get by investing in mutual funds. So far, mutual funds have failed in bringing awareness to the individuals. Due to unawareness individuals hesitate in investing in mutual funds. Individuals should be given awareness about the functions that mutual funds perform. Mutual funds process can be better understood in a form of a cycle which i s presented below: In 2008 before recession the Asset Management Companies were doing well, they were building individuals confidence for investing in mutual funds by making individuals aware of Mutual Funds and its benefits along with the higher profitability margins it offers. But recession and the regulators for Asset Management Companies took them to the initial stage again where people were not much confident about investing in mutual funds because giving ones hard earned money into someone elses hands requires utmost faith and a sense of trust. 1.2 Purpose of the Study To highlight those points which are creating negative impact on investor this creates ambiguity when the investor wants to invest in mutual funds. To identify the causes due to which the current market of mutual funds is not growing. To illustrate the basic distinctiveness in operating styles, management and research resources between ASSET MANAGEMENT COMPANIES other Investment Companies. To highlight peoples preference of the Asset Management Company while investing in mutual funds. 1.3 Research Objectives The paper in detail contains the theoretical framework supporting the research objectives. The secondary data is useful in explaining the research objectives and the primary data is also importance as it gives the picture to explain the dilemma in the mutual funds industry. 1.4 Research Methodology The secondary and primary source of data was used in this research, visits of different websites specially the website of MUFAP helped in a great manner to streamline of research work, however few individuals whom we met and ask difference sort of questions for the research gave us valuable information about the past and present situation. The different sources of by which we gathered the data are listed below, 1.5 Data Sources The desired data is collected from the following sources: Karachi Stock Exchange Asset management companies Annual Reports Asset Management Banks Security Exchange Commission of Pakistan State Bank of Pakistan Chapter 2 LITERATURE REVIEW 2.1 Introduction 2.2 Mutual Funds Industry 2.3 Why mutual Funds? 2.LITERATURE REVIEW 2.1 Introduction Chapter 2 focuses on the theoretical approach of mutual funds industries. In the literature review a comprehensive discussion will be performed on the working of mutual fund industries, the types and categories of mutual fund industries and the dilemma that mutual fund industries are facing. The chapter also studies that how investing in mutual funds is better or more beneficial than investing in any other avenue, the factors that differentiate mutual fund industries with other financial Intermediaries and the mutual funds cycle. 2.2 Mutual Funds Industry The mutual funds industry is a secure and better way of investing money. The conventional style of saving money is by keeping them in banks. However, the diminishing bank rates are even lower than that of the rate of inflation and so it may not be a very good choice. The next option could be putting the money in the market but this requires a great deal of knowledge. Investing money through mutual funds is trouble-free and good for small ventures. A mutual fund is a financial institution that allows a group of investors to pool their money together with a predetermined investment objective. The mutual funds have specialized fund managers who are responsible for investing the pooled money into specific kind of securities (usually equity or fixed income securities). The manager uses the money to buy bonds, stocks or other securities according to specific investment objectives that have been established for the fund. In return for putting money into the fund, one can receive either units or shares that represents proportionate share of the pool of fund assets. In return for administering the fund and managing its investment portfolio, the fund manager charges fees based on the value of the funds assets. In simple words, a mutual fund is a pool of money that is managed on behalf of investors by a professional money manager. It includes a group of well qualified people who can guide and invest the money of the unit holders appropriately. When one invests in a mutual fund, he / she is buying shares (or portions) of the mutual fund and becomes a shareholder of the fund. Since mutual fund is a pool of money, different investors invest in it at a time and the total amount collected by all the investors by the mutual fund manager is then invested in different avenues. Be it a money market, stock market, financial institutions, government securities, banks or / and other avenues. The fund manager may invest in more one than avenue at a time which depends on the category defined. Before investing the gathered amount by the investors, the mutual fund manager has to consider and calculate all the important facts and figures that could create more and more profit for the investors who have invested in the mutual fund. After the fund manager has invested, he/ she gets returns which are then distributed to the investors according to their shares in the mutual fund. It is therefore essential to look out for the best mutual fund to obtain maximum returns. The flow chart below describes broadly the working of a mutual fund: Mutual fund provides numerous advantages to its users. One of a great benefit of mutual funds compared to stocks is their major characteristic of diversification. This means that mutual funds invest in many different stocks and in this way balance the risk you may encounter. Additionally, the fund managers may decide to invest in companies from different sizes and industries. This is done in order to balance the downturns in a particular investment with the upturn in another. The basic duty of the management of any firm and the company is to maximize the business and the wealth of the shareholders as well as the sustainability of the owners of the company. The management of the mutual funds is charging the management fee for this purpose. The growth of the mutual funds which we have examined here is based on the determinants which are affecting the growth of the mutual funds and is dependent on the negative and the positive impacts of these determinants. We worked through two models for investigation of this relationship of growth. The two models are comprised of fixed effect model and the cross section model. Most of the results are drawn by these models provided same results except for some factors. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (one doesnt have to figure out which stocks or bonds to buy). 2.3 Why mutual Funds? Mutual funds are used as a gauge to operate economy effectively and efficiently, they help central banks in implementing their monetary policies, organizations to go through financing attained through mutual funds and banks to mobilize the investment or the cash. Mutual funds have become essential for the growth of an economy as it is a source of money mobilization in the country. Mutual funds mobilizes money in a country in such a manner that it deals with almost every available investment options. Mutual funds help in regulating money through investments in stock market i-e via purchasing shares they are rolling the money to the companies. By investing in debts (long term financing), Term Finance Certificates / Sukuk they are mobilizing cash and enhancing the company. Moreover a growing company can raise its countrys economy with the help of mutual funds. Along with the investments in money markets, mutual funds invest in banks and government bonds also. Another rationale to invest in mutual funds is that its conservative nature offers a hedge against loss and allows the investor to climb into other vehicles that may be more risky. That way a retired investor can try to make some money in mutual funds without putting at risk their future. Also by being part of a mutual fund portfolio, the senior citizens have a chance to view how the various stocks that make up the mutual funds are performing and can select to invest in mutual funds that starts out performing the others to produce profits. For the senior citizens and retired investors, mutual funds can offer a hedge against inflation and it can direct the retired investors to the best stock picks and most importantly, it can protect the retired investors from losing their savings. Chapter 3 mutual funds 3.1 What is Mutual Funds? 3.2 Types of Mutual Funds 3.3 Categories of Mutual Funds 3.4 How Mutual Fund Works 3.5 Partners in a Mutual Fund 3. MUTUAL FUNDS 3.1 What is Mutual Fund? A mutual fund is basically a collective investment that pools money from many investors to buy bonds, stocks, short-term money market instruments or other securities and is managed professionally. Mutual funds serve as a connecting bridge of a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual funds have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When an individual invests in a mutual fund, he or she is likely to buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compared to other investments. They are very cost efficient and convenient; individuals can easily invest in. Thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk maximizing returns. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification. Mutual funds have a large amount of funds so it is easy for the investors to invest in different stocks or bonds. 3.2 Types of Mutual Funds Open Ended Closed Ended Open-end Mutual Fund Open ended mutual funds possess following characteristics: Open ended fund is a fund which issues or redeems its shares at net asset value (NAV). It does not have a fixed fund size. Investors can get back their investment at any time by selling the units back to the fund. These are no fixed number of units. Open end funds are type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell. It should be noted that when a funds manager(s) determine that a funds total assets have become too large to effectively execute its stated objective, the fund will be closed to new investors and in extreme cases, be closed to new investment by existing fund investors. In simple terms, open end funds mean that the fund does not have a set number of shares. Instead, the fund will issue new shares to an investor based upon the current net asset value and redeem the shares when the investor decides to sell. Open-end funds always reflect the net asset value of the funds underlying investments because shares are created and destroyed as necessary. Close-end Mutual Fund Following are the characteristics of close ended mutual funds: Close end fund is a fund whose shares are traded at prices other than the NAV It has a fixed fund size. Investors can sell their shares to any buyer through an exchange where the share is listed other then the issuing company. These are fixed number of units / shares. A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Unlike regular stocks, closed-end fund stock represents an interest in a specialized portfolio of securities that is actively managed by an investment advisor and which typically concentrates on a specific industry, geographic market, or sector. The stock prices of a closed-end fund fluctuate according to market forces (supply and demand) as well as the changing values of the securities in the funds holdings. 3.3 Categories of Mutual Funds Following are the broad categories of funds that are further sub categorized and tailored according to the requirements of the investors Stock Fund / Equity Fund / Capital Market Fund Hybrid Funds / Multi Asset Fund / Balanced Fund Fixed Income Fund / Money Market Fund Islamic Fund A. Stock Funds Investment Objective The primary objective of this fund is to invest in stocks through different stock exchanges while controlling risk. The aim of the fund is to provide individuals and institutional investors with a well diversified portfolio of equity stocks covering all major sectors. The objective is to maximize income and capital gains by prudently employing its investment management expertise. Investment Policy The fund follows a growth strategy by investing in large cap companies. This entails looking for companies with a track record of growing sales and earnings and the potential for more of the same. In drawing the investment plan Research plays a vital role, as it identifies the stocks which have potential for capital gains, development of particular industry and its impact on the particular stock, timings of investments and divestments depending upon industry trend and expected results. Asset Allocation The portfolio generally has the following asset allocation but it can change from time to time or as the investment strategy molds it. B. Hybrid Fund Investment Objective The main objective of this fund is to participate in a diversified portfolio of securities representing investments in capital and money markets. The main investment objective is to maximize capital appreciation and income. Investment Policy Consistent with the investment objective the fund primarily invests in large capital equity securities, along with debt securities and other money market instruments such as Government Bonds, TFCs, Islamic Bonds, Reverse-Repo etc. Asset Allocation The portfolio generally has the following asset allocation but it can change from time to time or as the investment strategy molds it. C. Fixed Income Funds Investment Objective These funds seek to provide its unit holders with attractive income from a well diversified portfolio of low risk assets while maintaining liquidity. Investment Policy In line with the investment objective the fund invests in a diversified portfolio of Government Securities, Investment Grade Term Finance Certificates, Rated Corporate Debt, Certificates of Investment and other long and short term money market instruments. Asset Allocation The weightages of the investment mix of the portfolio are managed in a manner that reduces the risk of loss in market value of the investments as the result of any major upward movement in lending rates. During periods where the Management Company is of the view that there is economic uncertainty, the weightages of the portfolio are increased in the short-term debt securities, debt securities with short remaining life, money market instruments and short maturity repurchase arrangements including spread transactions. The funds typically comprise of 60 % fixed income instruments. D. Islamic Fund Investment Objective These fund aims at achieving high level rate of capital gains and current income in line with Shariah principals along with providing liquidity to the investors. Investment Policy These funds primarily invest in Shariah compliant investment instruments whereby 60% investments are made in listed securities. Specifically; Shares, TFCs, Participation term certificates, Musharika, Murabaha, and other asset backed securities. The funds also keep cash in riba free deposit schemes with Islamic banks and other financial institution with the objective to maintain sufficient liquidity. Equity investment broadly meets the following criteria and any additional requirements as advised by the Shariah advisors: (These criteria change subject to change in investment policies and shariah advisors) The basic business of the investee company should be halal. The total debt of the investee company should not exceed 45% of its total assets. Long term assets of the investee company as a percentage of current assets may not exceed 10% Mutual funds with different investment objectives provide a variety of investment risk and return opportunities to the investors. Therefore, it is important for fund investors to thoroughly understand and identify the investing style employed by the funds that they choose to use to build their portfolios. Mutual funds can also be categorized as the following: The three included categories in the mutual funds are lower risk and return, moderate risk and return and high risk and return. Further sub categories include money market funds, income funds, balanced funds,equity funds and aggressive allocation stock funds. 3.4 How Mutual Fund Works The below mentioned diagram is clearly shown the process that how a mutual fund works. A. Net Asset Value The Net Asset Value is a term used to describe the value of an entitys assets less the value of its liabilities. The term is commonly used in relation to collective investment schemes. It may also be used as a synonym for the book value of a firm. For mutual funds, net asset value is the total value of the funds portfolio less liabilities. The NAV is usually calculated on a daily basis. B. Sale Redemption Sale With reference to mutual fund industry sale is said to be executed when a unit or number of units are sold to an investor by a mutual fund on a specific price. Sale Price It is the price at which an open-end mutual fund sells its shares or units to the investor. In most cases, the sale price is the net asset value per share but they might have a sales load incorporated which is explained in the next two paragraphs. Redemption With reference to mutual fund industry redemption is said to be executed when a unit or number of units bought back from an investor on their instructions and the investor is paid back his money at the rates of the prevailing unit price by a mutual fund. Redemption Price It is the price at which an open-end mutual fund buys backs its shares or units from the owners. In most cases, the redemption price is the net asset value per share but they might have a back end load incorporated which is explained in the next two paragraphs. Management Fees The management fee for the fund is usually the advisory fee charged for the management of a funds investments. However, as many fund companies include administrative fees in the advisory fee component, when attempting to compare the total management expenses of different funds, it is helpful to define management fee as equal to the contractual advisory fee + the contractual administrator fee. This helps when comparing management fee components across multiple funds. Contractual advisory fees may be structured as flat-rate fees, i.e., a single fee charged to the fund, regardless of the asset size of the fund. However, many funds have contractual fees which include breakpoints, so that as the value of a funds assets increases, the advisory fee paid decreases. 3.5 Partners in a Mutual Fund Investment Management / Asset Management Investment management 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). The term asset management is often used to refer to the investment management of collective investments. 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. Investment management services include financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Coming under the remit of financial services many of the worlds largest companies are at least in part investment managers and employ millions of staff and create billions in revenue. Investors An investor is any party that makes an investment. The term has taken on a specific meaning in finance to describe the particular types of people and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company. The term is also applied to parties who purchase real estate, currency, commodity derivatives, personal property, or other assets. The term implies that a party purchases and holds assets in hope of achieving capital gain, not as a profession or for short-term income. Trustee Trustee is a legal firm or group of people who hold the property or investments on behalf of the mutual fund. A trust can be set up either to benefit particular persons, or for any charitable purposes. In all cases, the trustee may be a person or company, whether or not they are a prospective beneficiary Registrar A registrar is an official keeper of records. In case of a mutual fund they are the ones who keep the record of the Sale and Redemption of units, total units issued or outstanding with the information regarding the Unit Holder, dividend distribution etc. Distributor It is a firm or an individual who is licensed by the Asset Management Company to sell units on behalf of the fund. Custodian / Depository It refers to an institution which safeguards and manages flow of the financial assets of a Mutual Fund. In finance, a custodian bank, or simply custodian, refers to a financial institution responsible for safeguarding a firms or individuals financial assets. The role of a custodian is as follows: to hold in safekeeping assets such as equities and bonds, arrange settlement of any purchases and sales of such securities, collect information on and income from such assets (dividends in the case of equities and interest in the case of bonds), provide information on the underlying companies and their annual general meetings, manage cash transactions, perform foreign exchange transactions where required and provide regular reporting on all their activities to their clients. Custodian banks are often referred to as global custodians if they hold assets for their clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks in each market to hold accounts for their underlying clients. Assets held in such a manner are typically owned by pension funds. Chapter 4 Research Findings 4.1 Choice of Investment in Mutual Fund 4.2 Comparison of Pakistan with Asia. 4.3 Delimma of Investing in Mutual Funds 4.1 Choices for Investing in Mutual Funds For the following four categories; Stock Fund / Equity Fund / Capital Market Fund Hybrid Funds / Multi Asset Fund / Balanced Fund Fixed Income Fund / Money Market Fund Islamic Fund Listed are the available choices for Investing in Mutual Funds as of March 31st 2011. AKD Investment Management Ltd AKD Income Fund AKD Index Tracker Fund AKD Opportunity Fund AKD Alfalah GHP Inv. Management. Ltd. Alfalah GHP Income Multiplier Fund Alfalah GHP Value Fund Alfalah GHP Islamic Fund Alfalah GHP Stock Fund Alfalah GHP Capital Protected Fund Alfalah GHP Cash Fund Alfalah GHP Capital Protected Fund II Al Falah GHP AMZ Asset Management AMZ Plus Income Fund AMZ Plus Stock Fund AMZ Askari Investment Management Ltd. Askari Income Fund Askari Asset Allocation Fund Askari Islamic Income Fund Askari Islamic Asset Allocation Fund Askari Soverign Cash Fund Askari Atlas Asset Management Ltd. Atlas Income Fund Atlas Islamic Income Fund Atlas Islamic Fund Atlas Stock Market Fund Atlas Money Market Fund Atlas Crosby Asset Management Crosby Dragon Fund Crosby Pheonix Fund Crosby Dawood Capital Management Dawood Money Market Fund Dawood Islamic Fund Dawood Faysal Asset Management Faysal Balanced Growth Fund Faysal Income Growth Fund Faysal Asset Allocation Fund Faysal Savings Growth Fund Faysal Money Market Fund Faysal Islamic Savings Growth Fund Faysal Habib Asset Management First Habib Income Fund First Habib Cash Fund First Habib Stock Fund Habib HBL Asset Management HBL Income Fund HBL Multi Asset Fund HBL Stock Fund HBL Money Market Fund HBL IGI Funds Limited IGI Income Fund IGI Stock Fund IGI Money Market Fund IGI Aggressive Income Fund IGI Islamic Income Fund IGI KASB Fund Limited KASB Liquid Fund KASB Islamic Income Fund KASB Balanced Fund KASB Cash Fund KASB Capital Protected Gold Fund KASB Stock Market Fund KASB MCB Asset Management MCB Dynamic Cash Fund MCB Dynamic Allocation Fund MCB Dynamic Stock Fund MCB Cash Management Optimizer Fund MCB Sarmaya Mahfooz Fund 1 MCB Al-Meezan Asset Management Ltd. Meezan Islamic Fund Meezan Islamic Income Fund Meezan Capital Protected Fund I Meezan Cash Fund Meezan Soverign Fund Al Meezan National Fullerton Asset Management NAFA Cash Fund NAFA Income Fund NAFA Stock Fund NAFA Multi Asset NAFA Islamic Multi Asset fund NAFA Islamic Income fund NAFA Government Securities liquid Fund NAFA Asset Allocation Fund NAFA Riba Free Savings Fund NAFA Savings Plus Fund NAFA National Investment Trust NIT Stock Fund NIT (GBF) NIT (IF) NIT Arif Habib Investments Pak Intl Element Islamic Fund Pakistan Capital Market Fund MetroBank sovereign Fund Pakistan Income Encashment Fund Pakistan Income Fund Pakistan Stock Market Fund Pakistan Capital Protected Fund Arif Habib 15 Index Fund Pakistan Strategic Allocation Fund Pakistan Premier Fund Pakistan Cash Management Fund Arif Habib Noman Abid Investment Reliance Income Fund Noman Abid UBL Fund Managers Ltd. United Composite Islamic Fund United Growth Income Fund United Money Market Fund United Stock Advantage Fund United Islamic Income Fund UBL Capital Protected Fund ii UBL Islamic Savings Fund UBL Savings Income Fund UBL Liquidity Plus Fund UBL JS ABAMCO Limited Unit Trust of Pakistan UTP A 30+ Fund UTP Aggressive Asset Allocation Fund UTP Fund of funds JS Income Fund JS Aggressive Income Fund UTP Islamic Fund UTP- Large Capital Fund UTP Capital Protected Fund UTP Capital Protected Fund II UTP Capital Protected Fund III JS Principal Secure Fund 1 JS Principal Secure Fund II JS Cash Fund UTP Capital Protected Fund IV JS PAK OMAN Investment Management Pak Oman Advantage Plus Fund Pak Oman Advantage Stock Fund Pak Oman Advantage Islamic Income Fund Pak Oman Advantage Islamic Fund Pak Oman BMA Asset Management BMA Chundrigar Road Saving Fund BMA Empress Cash Fund BMA ABL Asset Management ABL Income Fund ABL Stock Fund ABL Cash Fund ABL Islamic Cash Fund ABL Lakson Investments Lakson Income Fund Lakson Money Market Fund Lakson Equity Fund Lakson PICIC Asset Management PICIC Income Fund PICIC Cash Fund PICIC 4.2 Comparison of Pakistan AMCs with Asia AMCs. As far as choices are concerned these are more than enough for a developing country or developed country if it is working good. Total 25 AMCs offering 125 funds have the size of _______ billion which is 5% of the economy. Raising a question what are the hurdles for the mutual fund industry that the growth rate is as low as it can be. If we compare our mutual fund industry with in ASIA we found at the initial stage the pace was moving parallel. As it is clearly seen from the above graph that at initial stage Pakistani and Asia AMCs were moving parallel but after the recession Pakistans AMCs couldnt recover. Although the rest of the countries AMCs are not on that position where they should be but far better then Pakistans AMCs and giving their best for the economic growth. The below mentioned graph simply showing the performance of Pakistans AMCs from inception till now which shows a clear decline after the recession. And up till now there is no clear forecasting for recovering the AMCs. Pakistan AMCs. The below mentioned graph 4 (a) is showing the performance of Pakistans Asset Management Companies from inception till now which shows a clear decline after the recession. And up till now there is no clear forecasting for recovering the Asset Management Companies. Graph 4 (a) Description of the graph (a). The graph represents the performance of Pakistans mutual funds from the year 2006 to 2010. In the mid of the year 2006 mutual fund size was Rs. 160 billion (6 %) which increased to Rs.179 billion till the end of the year remaining to the 6 % of bank deposits. In the year 2007, significant increase in the size of mutual funds has been seen i-e Rs.302 billion. 3% of bank deposits increased in one year i-e from 6 % in 2006 to 9 % in the mid of 2007. Mutual fund size further increased till the end of the year 2007, in June 2007 it was 9 % (Rs.302 billion) and in December it expanded to 10 % (Rs.368 billion). Moving on, the year 2008 seems to be the most appalling year for Pakistan mutual fund industry because mutual fund size decreased to its lowest level comparatively. In June 2008, mutual fund size was Rs.336 billion (9 %) which decreased terribly to Rs.180 billion and 5 % of bank deposits. After the decline of mutual funds in the year 2008, the Pakistan mutual funds industry couldnt r ecover in the next years. Although a minor increase in the mutual fund size in rupees in billion has been observed from the year 2008 to 2009 and 2010, it couldnt affect the percentage of bank deposits. The below mentioned graph is showing the performance of Asian countries AMCs from inception till now which shows that after recession, they do suffer from recession but somehow they managed to maintain. 4.3 The Performance The performance of the Pakistan AMCs with the respective categories and with the periods is listed and explains below. The Returns the comparisions with the benchmark for the different categories for latest periods are listed below:For Stock Funds: Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Mar-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Dec-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 30-Jun-10 11561.50 -19.30% 11809.54 -3.90% -3.90% For hybrid Fund: Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Mar-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Dec-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 30-Jun-10 11561.50 -19.30% 11809.54 -3.90% -3.90% For Islamic Fund: Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Mar-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Dec-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 30-Jun-10 11561.50 -19.30% 11809.54 -3.90% -3.90% For Fixed income Fund: Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Mar-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 31-Dec-11 11561.50 -19.30% 11809.54 -3.90% -3.90% Date KSE 30 Cummulative Return Kse-100 Cummulative Return Peer Group Average 30-Jun-10 11561.50 -19.30% 11809.54 -3.90% -3.90% 3. LITERATURE SURVEY Financial systems in a modern economy transfer resources over space, time and sectors. The flow of funds in a financial system occurs through financial systems and financial intermediaries. The major functions of this system are to transfer resources, manage risk, subdivide and pool funds and clear transactions. Institutions that provide financial services and products are called Financial Intermediaries. Financial institutions differ from other businesses because their assets are largely financial, rather than plants and equipments. The most important financial intermediary is Banks. They borrow and lend money to different households, corporate, and to those who need funds. Other important financial intermediaries are Insurance Companies and Mutual Funds that Pool and Subdivide securities. These financial systems allowed investments to be devoted to their most productive uses rather than being bottled up where they are least needed. Mutual funds in this regard help the economy to continuously rotate money in and out of the systems to make it remain hydrant. The mutual funds not only pools but subdivides the funds based on the need of individual saver or investor. The current and past environment of Pakistani Financial markets have always supported the Mutual fund industry due to their ability to pool and diversify investments that helps the money rotates to complete the fund transfers in and out of economy. The current scenario is a clear indication of the rising income levels as the money flow in the industry have shown a sharp increase in last three to four years. This rise have not only mobilized the money rotation but have also helped economy to develop at a much desired pace to beat inflation and help country fight out the phases of past recession that have somehow dampened the economic growth and prosperity. Previously the banks are the only options that an investor could opt from where he could save money and earn interest on it, now with the advent of Mutual funds the investment options have not only widened but have also increased the competition in the market as funds helps individuals take exposure in stock and money markets separately and collectively making them earn a higher risk adjusted return. This successful emergence of funds has let banks divest into Asset Management business making competition tough between banks and private groups. There is no denying that mutual funds these days are becoming more attractive and popular vehicles of securities investments among the general public world-wide. This trend is highly pronounced in the developed securities market of the United States of America and Europe. However, the developing economies including Pakistan are no exception to this global trend. It has been witnessed that mutual funds though form a comparatively small segment of the securities market in developing countries; they have been still increasingly gaining the public attention and have grown phenomenally over the last few years. To deliberate further on mutual funds industry, both global and local, it is essential in the first instance to have a look at the overall global situation regarding financial markets and the position occupied by mutual funds. These days, financial markets are in the process of momentous change prompted and catalyzed by the imperatives of globalization and the huge strides taking place in information technology, in particular the internet with its remarkable flexibility and endless, unfolding possibilities. And one can visualize that within a few years, not decades, neither capital markets nor banking will be the same as these are today. The fact of the matter is that financial services are getting disinter-mediated, commoditized and globalize. Stock exchanges, as structured today, perhaps even stockbrokers, may well become dispensable and redundant very soon unless they adjust substantially to changing realities and are able to provide real services as well as liquidity to market pa rticipants. Banks, too, will not be able to escape being disinter-mediated by specialized and commoditized and, perhaps, global provision of the type of services that one recognizes as banking. It is also clear that today, the three operational forces dominating the global financial system are: first an increasing focus towards meeting client needs instead of product sales; second, an increasing emphasis on the alignment of operations to manage and mitigate risk; and finally, reliance on emerging, broad-based intra-industry utilities for trade processing, settlement, funds transfer etc. Based on these three drivers, the intellectual ferment in global financial circles is overwhelmingly about advisory services and client-specific or designer financial products, in line with what is called client DNA. The talk is also about sales of risk and risk-reward packages as opposed to products, and about the importance of scale as well as the out-sourcing of back-end functionalities to seek cost savings. This year cross border flows are likely to be around 5-6 trillion dollars of which well over a trillion would pertain to investments in mutual funds. Obviously, it will be necessary to make the required and pertinent adjustments in operational modalities and approach to take account of global developments and it would, therefore, make sense for all concerned to forge and strengthen linkages with international asset managers as well as investment banks. As to the question how mutual funds will fit into this emerging paradigm for the global financial system, it is important, in the first place, to acknowledge the undoubted importance of mutual funds. This is obvious from the industrys aggregate, world size of $ 21 trillion as against the worlds financial assets that at present total around $ 120 trillion. Four years ago the industrys size was about one-third less i.e. $ 14 trillion. The hallmark of the industry has been innovation, its ability to utilize and leverage off information technology, and the professional acumen displayed by its managers. It appears that the evolving scenario of the world financial system that is characterized by disintermediation, commoditization, client-specific advisory services, and an emphasis on both risk management as well as economies of scale actually provides ample scope for mutual funds to flourish. The industry continues to innovate and develop products of differing risk-reward profiles which are constructed to capture value in a variety of ways. In many developing countries, including several middle-income countries in Asia and the Pacific, the mutual funds industry has displayed considerable progress in recent years. Although Pakistan had an early start with the setting up of NIT in 1962 and subsequently the ICP mutual funds, for almost 40 years, until 2002, the progress made was lackadaisical at best. In fact, the industry suffered both as a consequence of poor management as well as Government intervention and the distortions thus induced. During the past five years, prompted by positive changes in Government policy and regulation, as also measures to privatize and allow new entrants, the industry has witnessed major improvements and enhancement. The aggregate size of the local funds industry that was Rs. 25 billion in 2002 has now grown to Rs. 190 billion, i.e. over $3 billion, which is spread over some 61 funds that are managed by 34 asset management companies. Rs. 145 billion are in open-end funds and the rest is in closed-end funds. The total assets under management are, however, only 2% of GDP or 5.8% of bank deposits or 6-7% of market capitalization. By way of comparison I might mention that Indias mutual fund industry is 6% of GDP, 13.4% of bank deposits, and around 10-12% of market cap, whereas in the United States mutual funds are about 70% of GDP, over 150% of bank deposits, and about 20-25% of market cap. Also, it is noteworthy that the industry in Pakistan has come out with a fairly wide range of mutual fund products. In fact, the mutual funds industry of Pakistan deserves to be applauded and saluted for its excellent achievements. There are, however, several challenges to overcome! Both absolute and relative size of the industry remains rather small by international standards, its management is fragmented, its funding mostly comes from institutions and not from retail investors, its IT endowment is weak, its human capital is poor, and it has to contend with a shallow pool of invest-able assets. The question now is what should be done to enhance the mutual funds industry in Pakistan in order that it clearly plays its role of underpinning the financial markets and serves as an effective channel for mobilizing resources and allocating them to productive uses. This is not a perfect world, never has been, nor will it be! There will always be constraints and issues which will need to be addressed. If mutual fund managers are competent, they will know how to deal with difficulties and make progress but if they are not, they wont. To say, for instance, that by once again permitting institutions to invest in National Savings instruments has posed inordinate difficulties for mutual funds is not very convincing since the returns on NSS instruments have been drastically slashed over the years, and in any case, mutual funds must target retail investors, not institutions, if they are to play their proper role. Actually, with banking spreads being 7-10% and mutual fund fees being 1 to 2%, mutual fund managers have a lot of room to maneuver. Nonetheless, it is sincerely believed that policy makers and regulators in Pakistan will take the responsibility to adopt a progressive and enlightened view of mutual funds and will take such measures as are necessary so as to enhance the effectiveness of the industry as an important pillar of the financial system. To compare the basic management styles of the two groups following factors were analyzed that marks the characteristics of both major groups active in the market. Strong Management team that involves good professionals having experiences of managing funds and their appropriate qualifications have helped hem manage funds more efficiently. Standard Hierarchal Organization structure where the Audit and Risk Committee have to report to the Audit and Risk Board. This minimized the fraud risk and makes organization working effective. Mutual funds core concept is to minimize the Risk involved in Investments and most of the Banks managed AMC have strong Risk management department. Banks capacity to channelize their account holders to invest in their funds have given them an extra edge over others, as the investors feel secure to carry their confidence from one business to another. The other major factor engaged in its success is strong support from their parent organizations, starting from the seed capital, providing them the expertise required and fulfilling their funding requirements. The last factor that have helped them grow their networks are strong distribution and marketing channels, as bank branches are used as distribution centers for sales an collection points for redemptions and transfers. Private house expertise of stock market and their vast experience in this field have helped them give high returns on the stock funds making them more famous than other parties involved in the business. The time span that this group enjoyed at the start of the 90s helped them built confidence and launch new funds strengthening their market share before new entrants could stable themselves. Their major disability to expand at an enormous rate is their weak distribution network as only few institutions facilitate them in promoting sales and fulfilling other clients request. The general pay levels prevailing in this group is slightly lower than the other groups as they do not have a strong parental support to help them in fulfill their funding requirements and manage them in time of crises. The general reputation of this group among investors is not that equally high as of other group, as their alleged issues are being frequently highlighted in newspapers denting their reputation even harder. Chapter 4 Hypotheses Testing 4.1 Hypothesis 4.2 Testing of Hypothesis 4.HYPOTHESIS TESTING 4.1 Hypothesis Ho: Banks Managed Funds give higher returns on income funds as compared to Income fund managed by other private groups. Ha: Banks Managed Funds do not give higher returns on income funds as compared to Money market Funds managed by other private groups. Ho: Private groups manage Stock funds better than Banks AMC could. Ha: Private groups do not manage Stock funds better than Banks AMC could. 4.2 Testing of Hypothesis HYPOTHESIS NO. 1: Statement of Hypothesis Ho: Banks Managed Funds give higher returns on income funds as compared to Income fund managed by other private groups. Ha: Banks Managed Funds do not give higher returns on income funds as compared to Income fund managed by other private groups. Data Collected The data is primarily collected through the websites and fund managers report of the selected funds. The data available for the current financial year has been accounted and used as a sample for calculation. FactorsThrough which Hypothesis Result would be driven The result of the aforementioned hypothesis is represented through four most appropriate statistical tools used in the industry to evaluate the performance of income funds. These four methods are described below: a. Annualized Returns Annualized return calculates the fund return of a particular period being calculated on 365-day basis. This represents an annual return if the fund continues to perform in the same manner. Formula used: A.R= {(P1-PO)/PO}*365/ No. of Days of period selected Here, P1 = Last day NAV of the selected month. PO = Last day NAV of the previous month. b. Risk Adjusted Returns This ratio calculates the risk adjusted return by dividing the average return for the period with the standard deviation of the return for the same period. The higher the risk adjusted return the better is the funds performance. c. Asset Allocation The asset allocation of the fund represents its risk appetite and management concern over the consistent return. Fund invested in different asset classes having different assigned rating offer different return based on their assigned rating. The higher amount of fund invested in Junk Bonds do give higher returns but at times it causes funds return to decline in case of default of issuer. Similarly the investment in spread transactions also causes funds return to move adversely based mark to market basis. RESULT: Based on the weighted average annualized returns following results were obtained: Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Bank group 9.76% 9.80% 8.76% 8.76% 8.72% 8.99% 9.41% 9.10% 9.42% Private group 10.22% 10.83% 8.27% 8.96% 8.71% 9.20% 9.04% 8.86% 8.86% Difference -0.46% -1.03% 0.49% -0.20% 0.01% -0.21% 0.37% 0.24% 0.56% The Bank group as well as private houses has competed almost neck to neck but the variance in the returns of Private houses income fund have been more as compared to Bank group managed Income funds. To compare the variance in returns RISK ADJUSTED RETURN was calculated based on the same data that is used to calculate the annualized returns. Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Bank group 6.66 5.43 4.44 3.07 3.64 4.93 5.05 2.76 3.53 Private group 1.95 2.57 3.30 1.57 3.89 2.23 3.79 2.89 1.51 Difference 4.70 2.86 1.14 1.50 (0.25) 2.70 1.26 (0.13) 2.01 Based on the above results we could say that Banks group managed Income funds gives a higher risk adjusted return as compared to private houses managed Income funds. The asset allocation pattern of both the groups remained pretty much constant, private houses invested more in secured instruments having good credit ratings whereas, private houses funds invested more in Spread transaction and Money Market lending that usually carries a greater amount of risk as compared to investment in CFS and other rated instruments. Graphical Representation of Weighted Average Annualized Returns of Both Groups HYPOTHESIS 2: Statement of Hypothesis Ho: Private groups manage Stock funds better than Banks AMC could. Ha: Private groups do not manage Stock funds better than Banks AMC could. Data Collected The data is primarily collected through the websites and fund managers report of the selected funds. The data available for the current financial year has been accounted and used as a sample for calculation. Result of Hypothesis The result of the aforementioned hypothesis is represented through two most appropriate statistical tools used in the industry to evaluate the performance of stock funds. These two methods are described below: 1. Cumulative Return Cumulative return shows the average increase in the Net Asset Value of the fund for a given period. It is calculated by using formula: Cumulative Return = {(P1-PO)/PO} Here, P1 = Last day NAV of the selected month PO = Last day NAV of the previous month. 2. Comparison with Benchmark Measure of our performance as compared with funds benchmark. Through this measure the funds consistency in return is measured. RESULT: The weighted average cumulative returns of both the groups are shown below: Jul -08 Aug -08 Sep -08 Oct -08 Nov -08 Dec -08 Jan -09 Feb -09 Mar -09 Apr -09 BANK GROUP 0.95% -8.95% 9.22% 8.56% -1.03% -2.32% -0.72% 6.07% 2.00% 0.34% PRIVATE GROUP 0.45% -9.52% 10.84% 8.00% -1.59% -3.23% -0.93% 6.99% 1.71% 0.60% The Bank group managed funds over the tested period have shown a better performance as compared with private houses managed funds. The Private group Stock funds have shown an aggressive attitude as their deviation has been more than the Bank managed Stock funds. The general trend found with the Bank managed funds are their aggressive equity allocation in sectors that are highly affected by the macro economic conditions Like Banking sector. The Beta of these sectors has always remained above the average Betas of average performing stocks. Stock Funds Comparison with Benchmark Bank group performance: Jul -08 Aug -08 Sep -08 Oct -08 Nov -08 Dec -08 Jan -09 Feb -09 Mar -09 Apr -09 BANK GROUP 0.95% -8.95% 9.22% 8.56% -1.03% -2.32% -0.72% 6.07% 2.00% 0.34% KSE -30 -2.21% -10.35% 8.62% 6.83% -3.08% -0.23% -0.13% 10.01% 0.39% -1.51% DIFFERENCE 3.16% 1.40% 0.60% 1.73% 2.05% -2.09% -0.59% -3.94% 1.61% 1.85% Private houses group performance: Jul -08 Aug -08 Sep -08 Oct -08 Nov -08 Dec -08 Jan -09 Feb -09 Mar -09 Apr -09 PRIVATE GROUP 0.45% -9.52% 10.84% 8.00% -1.59% -3.23% -0.93% 6.99% 1.71% 0.60% KSE -30 -2.21% -10.35% 8.62% 6.83% -3.08% -0.23% -0.13% 10.01% 0.39% -1.51% DIFFERENCE 2.66% 0.83% 2.22% 1.17% 1.49% -3.00% -0.80% -3.03% 1.33% 2.11% From the above tables and graphs it could be concluded that private houses do outperform the bench mark (i.e. KSE-30) but as compared with the Private houses managed Stock funds they do not match their out performance. Based on the above facts and figures we could conclude that our Null hypothesis is rejected and PRIVATE HOUSES STOCK FUNDS DO NOT OFFER BETTER RETURNS AS COMPARED WITH BANKS GROUP MANGED STOCK FUNDS. Chapter 5 conclusion and recommendation 5.1 Conclusion 5.2 Recommendation 5.CONCULSION AND RECOMMENDATION 5.1 Conclusion Based on the above hypothesis we could conclude that Banks group manages mutual funds in a more efficient manner giving superior risk adjusted return as compared with private houses managed mutual funds. The working style and adoption of international best practices (like Audit and Risk Committee Board) has been far most applicable on the Banks managed Asset Management limited (AMC). 5.2 Recommendation The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors. Before making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration. Younger people aged under 35 will be a key new customer group into the future, so making greater efforts with younger customers who show some interest in investing should pay off. Customers with graduate level education are easier to sell to and there is a large untapped market there. To succeed however, advisors must provide sound advice and high quality.

American Indian Culture Gambling - 2358 Words

American Indian culture included gambling for many centuries. More than 100 tribes were known to play different versions of dice games before the Europeans settled in the United States. In the United States, gambling on Indian reservations has become quite common. There are 225 tribes in 28 states who operate some sort of gaming facility. Gambling on reservations was initially established to promote economic development in order to increase the standard of living. It was seen as a way to increase income on poverty-stricken reservations. (Momper 2010) Tribes are responsible for managing social services, health and education, housing and legal issues, natural resources and gaming establishments. Casino profits are generally used to fund educational and social services programs for the tribe. (Momper and Jackson 2007) The Florida Seminole tribe began the Native American gaming Journey by establishing the first high-stakes bingo hall in North America. 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Network Security Role of the Network Administrator

Introduction Data which are kept by a company are vital and its protection should be a priority to networking administrator or network engineering. The company network can be invaded by both internal and external attack. Its estimated that up to 80% of all attacks against IT systems originates from the internal network, and are carried out by trusted fellow employee, deliberately to harm the company or the company employees Therefore, network security can be defined as the process in which digital information are protected against any attacked (IATA, 2011). The potential malicious and attack which are likely to invade the companys network are data modification or manipulation, eavesdropping, sniffer attack, Virus, Worm, Trajan, password attack, a dictionary attack, brute force attack, IP address spoofing/IP spoofing/identity spoofing and denial of Service. These attacks are unique in the way which they invade the network for example sniffer attack captures and analyzes the network traffic of the organization. It monitors network information such as passwords and valuable customer information. A hacker can use such information to access finances of a client and the companys server and download or delete games from the server (Will Spencer, 2012). The network is likely to be attacked by eavesdropper because of the Voice over Internet Protocol (VoIP) system installed and being used by the company. Someone might have an intention to listen or monitor network trafficShow MoreRelatedSystems Administration and Network Administration913 Words   |  4 PagesSystems Administration and Network Administration Systems administration and network administration are, in many respects, very similar jobs. 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Rational Argument

Question: Choose one of the media articles or case studies listed by the lecturer in Interact. Use the title of the article/case study provided in interact as the title of your essay, so that the lecturer knows which article you are analysing. Undertake further research about your chosen case, to assist you in analysing and discussing it in your essay. Answer: Introduction Information and information resources system should be restricted. To restrict information system a main key element is to secure se information system. This process is controlled with the help of high security concepts. An information system is a process where the major and important informations are transferring from one user to another user. During this transmission time both the user do not want to share this data with third party. So they must maintain a proper communication path by which their information is secured and reliable (Trajkovik Mishev, 2014). There are so many information data which need not to secure as they are not reliable or important. Now a days Security is essential for ICT management system. Several threats and viruses are avoided with the help of the security policies. Security also refers a confidential process for an ICT organization where the important informations are transferred from one system organization to another system organization. The confident ially is a process, by which an information is released only to the authorized parties. Information system needs to be secured during the transmission time in between two systems. An ICT security is process which guides small network securities during a proper data transmission from one system to another system. Finally an ICT security is a critical consideration which maintains the major activities during proper information sharing among two communication systems. Step 1 Security is essential for ICT communication system, which provide a safe data transmission Security is the main challenge faced by organizational information system A security policy generally explains the main mechanism of a security system for a safe data transmission The security of an encryption process is guaranteed by secret keys and never by algorithm keys Cyber crime is a major crime that involves computer network due to poor network security Step 2 Security is a major problem to ICT information system during their data transmission. ICT is the main communication provider which provides important data and information from one channel to another channel. To process this system ICT maintain some protocol to transfer information among their main servers (Rhee, 2003). As communication path is the main transaction path for ICT system so each and every system must provide some data or information which is required during a transmission process. This information system should provide a protection key that the third part cannot able to trace the communication path. So ICT communication system must provide a safe and successful data transmission over internet system by maintain the major security protocols. With the help of these protocols communication system can provide a safe data transmission among their entire system. From the above argument it can be concluded that Security system is the main key which provides a safe transaction p rocess for an ICT communication system. In an organization to process a successful information transaction security is the main challenge faced by the particular organization (Quigley, 2011). In an organizational information system the information structure is the key element for the organization. Human factors are the basic requirements for an information process to make the main communication path among their entire servers. With the help of the human factors the security culture of an information system can be significantly enhanced. The organizational informational structure is totally based on public network or internet system. So security is an essential issue for an organizational information system. To process a safe data transmission some security policies are maintained which cover up the entire security mechanism. Encryption is a process to transform data or information from source to destination (Oppliger, 1998). During this process the third party cannot access data or information. Authentication is a security mechanism which is necessary to check about clients authorization to perform the particular action. This process is used to verify the client and server information or authentication with their basic requirements to perform the particular transmission. So encryption and authentication is the main security mechanism to transform data from one system to another system. Auditing is a server toll to trace the clients address against the security threats. With the help of auditing process all threats of server protocol can be avoided during a successful data transmission. So finally it can be concluded that security policy causes a safe data transmission process (Kocarev, 2012). In an encryption process secret key is the main element to protect the entire encryption process. Encryption among two servers refers the entire data transmission process among them without any overlapping or interference. During an encryption process cryptography is the main algorithm to manage the entire process. So to process a safe and secure data transmission encryption is the main secret key to cover up the security policy. The algorithms are not responsible for a secure encryption. Secret key is the main intermediate term to process a secure encryption (Jahankhani, 2010). Now a days cyber crime is a major crime which involves computers information and the entire network due to poor network security. Generally cyber crime can be protected with the help of strong network security policy (Faber Behnsen, 2013). Network security is an essential part to prevent the entire cyber crime. During an online transmission data are not secure due to poor network, which may cause a hacking process in the network. By managing a strong network it can defend the hacking process. So the network security can prevent the entire cyber crime by maintaining a strong network authentication. Conclusion ICT represent a security management process which describes the risk factors of the entire network management system over the internet system. The report concludes that ICT security system is co operating the policy development process including a strong network authentication. Information sharing will also enhance a critical thinking of the organization including critical infrastructure to prevent the major cyber threats. Public Private Corporation is attached with ICT to secure their network by maintaining their flexibility and rapid information sharing. Encryption is the major security process to enable the security policy during an online data transfer from one channel to another channel (Dunsmore, Brown, Cross Cunningham, 2001). Recommendation To process a safe and secure data transmission among the entire ICT servers the cryptography must maintain some protocol which control entire risk management of the system. The ICT revolutions are driven from global environment to enhance their security policy by maintain a strong network security. Some software is used to secure this network to maintain a successful supply chain. The information is secured with a server key during the data transmission that no other party can access this information. After a successful transaction of data transfer the source and destination can able to retransmit the entire pro0cess without any overlapping or interferences. ICT should develop their web application by organizing a strong secure policy which co-operates the flexibility of information sharing. The operating system should be strong to keep the original data during the communication path from source to desti9nation by providing a strong security mechanism (Chapman Zwicky, 1995) References Chapman, D., Zwicky, E. (1995).Building Internet firewalls. Sebastopol, CA: O'Reilly Associates. Dunsmore, B., Brown, J., Cross, M., Cunningham, S. (2001).Mission critical!. Rockland, MA: Syngress. Faber, E., Behnsen, W. (2013).Secure ICT service provisioning for cloud, mobile and beyond. Wiesbaden: Springer Vieweg. Jahankhani, H. (2010).Handbook of electronic security and digital forensics. New Jersey: World Scientific. Kocarev, L. (2012).ICT Innovations 2011. Berlin: Springer. Oppliger, R. (1998).Internet and Intranet security. Boston: Artech House. Quigley, M. (2011).ICT ethics and security in the 21st century. Hershey, PA: Information Science Reference. Rhee, M. (2003).Internet security. Chichester, West Sussex, England: J. Wiley. Trajkovik, V., Mishev, A. (2014).ICT innovations 2013. Cham: Springer.

periods-of-PHILIT Essays - Southeast Asia, Filipino People, Writers

PHILIPPINE LITERATURE I. PRE-COLONIAL PERIOD (--BC to1564) A.Characteristics 1. Basedonoraltraditions 2. Crude on ideology and phraseology B.LiteraryForms 1.OralLiterature a. Riddles (bugtong) - battle of witsamong participants Tigmo -Cebu Paktakon-Ilonggo Patotdon - Bicol b. Proverbs (salawikain) - wise sayings that contain a metaphor used toteach as a food for thought c. Tanaga - amono-riming heptasyllabic quatrain expressing insights and lessons on life is "more emotionally charged than the terse proverb and thus has affinities with the folk lyric." 2.Folk Songs -It is aform of folk lyric which expresses the hopes andaspirations, the people's lifestyles as well as their loves. Theseare often repetitive and sonorous, didactic and naive. a. Heleoroyayi-lullaby b.Ambahan (Mangyan) - 7-syllable per line poem that are about human relationships and socialentertainment c. Kalusan (Ivatan) - work songs that depict the livelihood of the people d. Tagay (Cebuanoand Waray) - drinking song e. Kanogan (Cebuano) - song of lamentation for the dead 3.FolkTales a.Myths -explain howthe worldwas created, howcertain animals possess certain characteristics, whysome places have waterfalls, volcanoes, mountains, flora or fauna. b.Legends-explaintheoriginofthings example: Why the Pineapple Has Eyes, The Legend of Maria Makiling c.Fables- usedanimalcharactersand allegory d. Fantastic stories - deal with underworld characters such as "tiyanak","aswang", "kapre" and others 4.Epics-These are "narratives of sustained length based on oral tradition revolving around supernatural eventsor heroic deeds" (Arsenio Manuel) Examples: Lam-ang(Ilocano) Hinilawod(Panay) Kudaman(Palawan) Darangen(Maranao) II.SPANISHCOLONIZATIONPERIOD(1565-1863) A.Characteristics 1. It has two distinct classifications: religious and secular 2. It introduced Spanish as the medium of communication B. LiteraryForms 1.Religious Literature -Religious lyrics written by ladino poets orthose versedin both Spanish and Tagalog were included in early catechism and were used to teach Filipinos the Spanish language. a. Pasyon -longnarrativepoemabout the passion and deathof Christ.The most popular was "Ang Mahal na Passion niJesu Cristong Panignoon Natin" by Aguino de Belen. b. Senakulo -dramatization of the pasyon,it shows the passionand deathofChrist. 2.Secular(non-religious) Literature a. Awit- colorful talesofchivalrymadefor singingand chanting Example: Ibong Adarna b. Korido- metrical talewritten inoctosyllabicquatrainsExample:Florante atLaura byF. Baltazar c.Prose Narratives -written to prescribe proper decorum i.Dialogo ii.ejemplo iii.ManualdeUrbanidad iv. tratado Examples: Modesto de Castro's " Pagsusulatan ng Dalawang Binibini na siUrbana at si Feliza" and Joaquin Tuason's "Ang Bagong Robinson" (The NewRobinson) in 1879 III.NATIONALISTIC/PROPAGANDAANDREVOLUTIONARYPERIOD(1864 - 1896) A.Characteristics 1. Planted seeds of nationalism inFilipinos 2. Language shifted from Spanish to Tagalog 3. Addressed the masses instead of the "intelligentsia" B. Literary Forms 1.PropagandaLiterature- Reformatoryinobjective a.Political Essays- satires, editorialsandnews articles werewritten to attack and expose the evils ofSpanish rule i. DiariongTagalog -foundedbyMarcelo delPilar ii. LaSolidaridad -whose editor-in-chiefisGraciano Lopez-Jaena b.PoliticalNovels i.Noli Me Tangere and El Filibusterismo- JoseRizal's masterpieces that paved the way to the revolution 2. RevolutionaryLiterature-morepropagandisticthanliteraryasitismoreviolent in nature anddemanded complete independence forthe country a. Political Essays - helped inflame the spirit of revolution i.Kalayaan - newspaper of the society, edited by Emilio Jacinto b.Poetry i.True Decalogue -ApolinarioMabini ii. Katapusang Hibik ng Pilipinas - AndresBonifacio iii. Liwanag at Dilim - Emilio Jacinto. IV.AMERICANCOLONIALPERIOD (1910- 1945) A. Period ofApprenticeship (1910-1930) 1. Filipino Writers imitated English and American models 2. Poems writtenwere amateurish andmushy,which phrasingand dictionis awkward and artificial a. Short Stories i. Dead Stars - Paz Marquez Benitez ii. The Key - Paz Latorena iii. Footnote to Youth - Jose Garcia Villa b. Novels i.ChildeofSorrow- firstnovel in English, by ZoiloGalang B.Period of Emergence(1920-1930) 1.Highly influenced byWesternliterarytrends like Romanticism and Realism a.ShortStories-mostprevalentliteraryform i.JoseGarciaVilla-earnedtheinternationaltitle"PoetoftheCentury" V.JAPANESEOCCUPATION(1942-1960) A. War Years(1942-1944) 1.Tagalogpoets brokeawayfrom the Balagtastradition andinstead wrote in simple language and free Verse. 2. Fictionprevailedoverpoetry a.25 Pinakamabuting Maikling Kathang Pilipino (1943) - compilation of the short story contest by themilitary government i.Suyuan saTubigan- MacarioPineda ii.LupangTinubuan-NarcisoReyes iii.UhawangTigangnaLupa- Liwayway Arceo B. Period of Maturity and Originality (1945-1960) 1. Bountiful harvest in poetry,fiction, drama and essay 2. FilipinowritersmasteredEnglishandfamiliarizedthemselveswith diverse techniques 3. Literary"giants"appeared a. Palanca Awards for Literature i. JoseGarciaVilla ii. NickJoaquin iii. NVMGonzales iv. BienvenidoSantos v. Gregorio Brillantes vi. GildaCordero Fernando b. NationalArtistAwards i. JoseGarciaVilla ii.NickJoaquin VI.CONTEMPORARY/MODERN PERIOD (1960- PRESENT) A.Characteristics 1. MartialLawrepressed andcurtailedhumanrights,includingfreedom ofthe press 2. Writers used symbolisms and allegories to drive home their message, at the face of heavy censorship 3. Theater was used as a vehicle for protest, such as the PETA (Phil. EducationalTheater Association) and UP Theater. 4. From theeightiesonwards,writers continue toshow dynamismand innovation Source: http://www.scribd.com/doc/36510088/Philippine-Literary-Periods#scribd