Portfolio Analysis Essay Example for Free

Portfolio Analysis EssayIn the investment world there argon many investment options to shoot from, one of there investment option is the mutual stemma .a mutual inventory is an investment where the investors pool resources together which argon then invested in securities, wintry interest stocks and money commercialize place instruments like derivatives. The mutual origins is a professionally managed by memory board managed whose sole purpose is to ensure that the returns on the invested assets are maximized to the receiptss of the individual investors. The performance of the mutual fund can be calculated by fund managers whose sole purpose is to ensure that the returns on the invested assets are maximized to the benefit of the individual investors The performance of the mutual fund can be calculated on a daily basis by taking the current market value of the fund and dividing it with the number of securities in the fund1Mutual funds are usually open end company governed by the investments company act (1940) in the U. S.AMutual funds are suitable for those high-pitched net worth individuals who are either too busy to deal personally with their investments or those investors who fagt have the investment know-how.Investors in mutual funds should have investment objectives for the mid term to long term so as to pull out level best benefits. Some of the mutual finds include stock money market funds, hybrid funds and bond fundsIn the following discussion we are going to discuss prescript funds which are registered in the island of Guernsey in the channel islands which is an off share country. The dominion funds are shared out in to 2 the chic fund and the x-fund.Dominion fundsThe companyDomination Company is an investment fund management firm that is registered in the Guernsey in the Channel Islands with branch a in Switzerland. The dominion brand is a sophisticated innovative and elegant. These attributes are in line with the business principles o f the company. The dominion fund is developed to meet the ever changing demands of the intelligent investors of today who include professional investors. These investors demand extra performance and ex jail cellent service from the fund manager and that is why the dominion brand was created to deliver excellent service and returns. To achieve this level of standards the company has companies two dominion distribution management hold branches in Guernsey and a dominion risk management S.A based in Switzerland. silver tradedThe funds managed by dominion company are the x funds and chic fundsChic fundsThe structure of this fund is that it has the property class of 3 major currencies (US $ EURO GBP ) which are combined to form the fund. The fund itself is an 80% index portfolio and 20% active port folio. These funds managed by dominion chic fund limited which invests in diversified stock of extravagance goods and services companies recognized the world over. Apart from being availa ble in 3 currencies an investing in luxury goods companies the funds also offer periodic prices and redemptions. The objective of this fund is the long-term capital appreciation.This is achieved by the division of the fund in to 2 passive investment range between 80-100% of all assets invested depending on the stylish structure developed by the investment manager(blackrock merill lynch investment manager) and dominion company. The investment manager is required to manage the basic index in this investment as prescribed.Active investment- forms up to 20% and its objective is to increase the returns and volatility reduction. The active investment is also used to invest in those freshly listed companies and in new luxury goods.Assets investedThere is no single definition of luxury goods and service and hence the company has luxury to mean. Those strong market brands with high innovativeness ability to chart price and supply easily forecasted growth and top class. It can also mean pro ducts and service of those companies with management, with track records. The assets in chic fund are in the following sectors with the following geographical distributionSector distribution geographical distributionBeverages and food- 17.38% Europe-45.95%Accessories- 9.35% asia-13.55%Apparel- 7% USA -40.53%Watch, jewellery and optics- 8.04%Transport- 1% unoccupied and hotels- 5.56%Sports 9.27%Retail- 3.52%Tech-18.76%Cosmetic-9.33%(http//www.dominion-funds.com/english/chic/investorsentassets.aspx)x- fundswere created to utilize the returns generated by the available market based securities over the cost of sourcing funds e.g. through bank loans.The x fund have been designed to minimize the risk assonated with return of based securities and specifi retrievey for the risk and professional investors keen on getting a risk weasel-worded investment well above average in the log term.Fund structureThe fund is managed by dominion PCC limited which is a protected call company, formed in Gue rnsey and regulated by Guernsey financial service. Commission. It is an open ended in investment fund. The fund is a 2 currency (euro and US $) each containing 6 fund. The fund has 3 leveraged options. (Low to medium risk x 0) (medium risk x1) (and aggressive higher risk x 2) with 2 types of assets prudential and Norwich union with- derives funds.It also is priced weekly with monthly redemptions. X-funds innovative investments combines with profit funds with complex credit lending thus minimizing debt usage risks in the market and at the some time the market and at the same time maximizing returns over the long term.Nature of assets Dominion x-funds are invested in the beat out and extensive with profits funds. The reason why dominion has invested in there funds is that of proven unsurpassed. Past performance and their consistency which makes them reliable. In any cutting anyway there with profits are provided by the blue chip financial institutions in Europe. The with profits fu nd that dominion x- fund invests in has the following characteristics which makes them depend able for maximum returns to the investors. with profit funds are accessed only through an insurane e policy. One of the lalyout out features of an with profit fund is that its well founded with a long investment account that even go beyond a century. They usually involve a relatively stable portfolio that includes stocks bonds property and cash.This means that with profit funds give a level of return that barely flutualesover time. It stable level of return means that the risk involved with this port folio is low. The opposite reason why dominion x-fund invests in the with profit funds only over the medium to long term is because when invested only in the short periods they are usually affected by the risk of market value reduction. They should only be invested in the medium to long-term in order to achieve maximum capacity gains and ensure stable returns. The assets that the dominion x- f und invests in are the generic with profits, prudential international and Norwich union international fundsPCCProtected cell company open end company- that falls under the Guernseys companies law ( 1994) amended and protected cell companies ordinance 1997 amended.PCC as benefits which areFunds assets fuly utilized by fund investors alone.