The News Review:
- Investing for income
- Vulture venture
- Real Estate – An investment option for the Prudent Investor
- ‘Alligator down dey!’
- Middle East promises much for investors but at a higher risk
- Northern Trust Extends Suite of Performance and Risk Analytics…
Investing for income
Telegraph.co.uk – Apr 6, 2008
With one-year fixed-ratesavings products paying up to 7per cent, and the Government’spreferred measure of inflation(CPI) running at 3 per cent, itseems that substantial realreturns are easily available –without the need to look anyfurther than the nearest cash-strappedbank. But as Martin Bamford, jointmanaging director atindependent financial advisersInformed Choice, explains,income-hungry investorsshouldn’t get too complacent.
Vulture venture
San Diego Union Tribune – Apr 6, 2008
Perhaps because of their roots in the corporate raiding of previous decades and perhaps because some embrace terms such as vulture investing, there is a stigma surrounding hedge funds and debate about whether that notoriety is deserved. Hedge funds are highly speculative investment pools for wealthy investors who seek short-term gains through a variety of strategies. One is value investment, or finding companies with worth not reflected in their stock price. Others include activist investing – prodding management for changes to boost stock prices – and distressed or vulture investing, which is buying the debt of companies in or near bankruptcy. Defenders say the funds push undervalued companies to take their medicine, which puts them on the road to health. Others say the funds dwell in the fringes of financial regulation as they seek big, quick payoffs… Perhaps because of their roots in the corporate raiding of previous decades and perhaps because some embrace terms such as vulture investing, there is a stigma surrounding hedge funds and debate about whether that notoriety is deserved. Hedge funds are highly speculative investment pools for wealthy investors who seek short-term gains through a variety of strategies. One is value investment, or finding companies with worth not reflected in their stock price. Others include activist investing – prodding management for changes to boost stock prices – and distressed or vulture investing, which is buying the debt of companies in or near bankruptcy. Defenders say the funds push undervalued companies to take their medicine, which puts them on the road to health. Others say the funds dwell in the fringes of financial regulation as they seek big, quick payoffs. Their moves can create big waves that buffet little investors.
Related: Vulture venture
Real Estate – An investment option for the Prudent Investor
Myiris.com – Apr 6, 2008
Hariharan
When planning one`s personal finance to what extent one should invest into real estate?That is a choice between the devil and the deep sea! Considering the volatile swings in the Sensex, investors are left with the option to put the money in land or buildings. Land is always a better long term investment option than buildings. A more prudent option will be for investors to carefully sift through many options of mutual funds that are parking their money into real estate or infrastructure projects. This will give a lower return, but a safer one. Please state your views on the current real estate industry in India.
‘Alligator down dey!’
Jamaica Observer – Apr 6, 2008
Freeing up our markets and granting most favoured nation status to all kinds of foreign predators makes no sense at all, especially since our capitalists have almost all given up production for margin gathering, and land owners regard land as a portfolio asset rather than as a productive resource. Ten years ago in discussing an initiative called the Multilateral Agreement on Investment (MAI) I said, “The capitalists and bureaucrats of the developed world have been working hard on a big surprise for the rest of us. It is called the Multilateral Agreement on Investment (MAI) and its purpose, they say, is to make everybody happier and richer. It is also designed to protect us from ourselves and to protect poor, weak, harmless investors from the predatory menaces of indolent Third World politicians. “(Global Reich -August 30,1998. )
According to its sponsors the aim of MAI is to “provide a broad multilateral framework for international investment with high standards for the liberalisation of investment regimes and investment protection and with effective dispute settlement procedures”. I perceived the MAI as something more sinister… I perceived the MAI as something more sinister. EQUAL RIGHTS FOR MILLIONAIRES “At the heart of MAI is the idea that in a truly free world, every millionaire should have the same rights as every other millionaire. Or, forgive me, every MacDonald’s or Disney investing in say, Jamaica, should have the same rights as Tastee’s or the local jerk pork counter. ”
The recent dalliance between the European Union and the Regional Negotiating Machinery of CARICOM was not meant to reproduce the results of the MAI – most of which have been incorporated into the WTO. The latest affaire has been meant to hogtie us more securely for the pleasure and profit of European usurers and exploiters, a more refined form of economic sadism. Professor Norman Girvan has been campaigning to have the forced marriage of the so-called Economic Partnership Agreement (EPA) annulled before it is forcibly consummated. Apart from individually obnoxious provisions in the EPA, Professor Girvan points out:
“.
Middle East promises much for investors but at a higher risk
Telegraph.co.uk – Apr 6, 2008
It is a fund of fundswhich will focus on the Gulfregion, and will give access tocountries such as SaudiArabia – usually off-limits tonon-residents – by investingthrough funds in the Gulf. Only one fund whichfocuses on the region – JPMorgan Middle East, anoffshore fund – has a trackrecord, according toMorningstar, the fundsanalyst. It has turned a £1,000investment into £3,681 overthe past five years, and £1,240over the past 12 months. Allan Conway, head ofglobal emerging markets atSchroders, said: “The MiddleEast is an area which has notgenerally been on people’sradar screens, but which hasgone through a massivetransformation in recentyears.
Related: Mega Airports bring fresh security challenges, Aviation Summit is told
Northern Trust Extends Suite of Performance and Risk Analytics…
itnews.it – Apr 6, 2008
Jeremy Charles, Chief Operating Officer of Thames River Capital, said, "We had been looking at IT solutions for both risk reporting and performance attribution as part of our objective to provide investors with greater understanding and transparency of the investment risk and performance in our funds. Northern Trust, with all our fund data in its accounting and custody systems, was in an ideal position as a potential solution provider and helps solve the problem of data management across applications. We are extremely pleased that Northern Trust has decided to offer this new integrated service direct to our desktop and we look forward to a deeper relationship with them. ""We are delighted that the existing relationship between Northern Trust and Thames River Capital has expanded. The product solution that we are providing to Thames River Capital leverages the benefits of Northern Trust’s single, global operating model and currently includes a range of fund administration and custody services across multiple jurisdictions," said Toby Glaysher, Head of Northern Trust’s U. Global Fund Services group.
[...] Debt relief act has its limitsHeraldNet – Apr 6, 2008The sticky point, however, is that refinances made between the time of purchase and foreclosure could muddy the waters. For example, if your refinanced your loan and took cash out of the property to pay for cars, vacations and other real estate, the amount of your loan when it went into foreclosure could have been far greater than the original debt. The relief limit would stop at the original debt. However, a refinance to the amount of the original debt would qualify. “You should look at this debt as purchase money debt, unless the refinance money was expressly used to improve the primary residence,” said Joe DiPaola, real estate broker, lawyer and former executive with Coldwell Banker. The new law is a bit different than the guideline for mortgage interest deductions — a write-off that many taxpayers exceed… However, a refinance to the amount of the original debt would qualify. “You should look at this debt as purchase money debt, unless the refinance money was expressly used to improve the primary residence,” said Joe DiPaola, real estate broker, lawyer and former executive with Coldwell Banker. The new law is a bit different than the guideline for mortgage interest deductions — a write-off that many taxpayers exceed. You can only deduct interest on the original amount of the loan, plus $100,000 of home equity debt. For example, let’s say you purchased your home 10 years ago for $100,000 and took out a loan for $80,000. Since then, you have paid the loan down to $20,000. The house is now worth $275,000 and your oldest child needs college tuition.Related: Middle East promises much for investors but at a higher risk [...]