Sentences with phrase «where assets return»

The second intuitive way to view it is that it is analogous to Modiglani and Miller's capital structure theory, where assets return the same regardless of how they are financed with equity and debt.

Not exact matches

Though it would hit endowments especially hard, where the need to achieve superior investment returns and recruit Wall Street's best talent to handle the billions in endowment assets has led to multi-million dollar compensation that resemble financial services industry pay packages.

Funds are increasingly in a position where they can't sell assets quickly to get that money to return to their investors.

That's the most disheartening thing about the asset class — and one of the reasons why long term returns aren't where they should be.

«The majority of investments in this asset class will go to zero — that's the nature of a high - risk, high - return asset class — and the goal is to build a diversified portfolio where the handful of winners do well enough to provide outstanding returns across the whole portfolio.»

«We are moving forward with a continued sense of urgency on our four strategic priorities: narrowing our focus on clients, products, and geographies where we can grow profitably; driving for efficiency; growing through innovation and optimizing our data assets and client relationships; and returning excess capital to shareholders,» he added.

Asset allocation is the toughest part of investing — and often where significant returns are derived.

We've also been investing in de-risked greenfield projects where all key permits and contracts have been secured but where we can earn a return premium for investing at an earlier stage in the life - cycle of the asset.

With this background information, I believe 2018 will be the last year of good times where assets remain relatively stable as they track historical returns.

They borrowed money cheaply in the U.S., and used it to buy assets in places where returns were higher.

The best feature here is the option builder category, where you can pick your asset and customize your rate of return.

For its new global fund, Sequoia is already trying to attract investors in China, where fund managers are looking to gain from growing sources of capital at wealth management firms, insurers and other large domestic institutional investors that aim to boost returns in alternative assets, the people said.

Since March 2009, the S&P 500 Index has had a total return of approximately 250 %, driven by two primary factors: First, super-easy global monetary policy in the wake of the banking crisis, which drove down returns on safe assets to the point where risky assets became a much more compelling proposition than is typical.

I believe it's fair to say that as we look at a world where very few asset classes globally have produced positive nominal returns year - to - date, and a world where US corporate earnings and economic growth have been tepid at best, increasingly ascending US equity valuations connote incremental capital concentration.

Obviously there's a point where those returns are impacted by overpaying for assets.

Case in point: New York state, where Comptroller Thomas DiNapoli announced last week that the $ 178 billion state and local pension fund ended its fiscal year March 31 with a minuscule return on assets of 0.19 percent, well short of its 7 percent long - term target.

Mrs. Dabiri - Erewa, who said asset recovery was different from asset returning, decried the uncooperative attitude of the countries where stolen funds are stashed.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Another approach which is used in U.S. state and local taxation by virtue of an interstate compact, is to have entities (or consolidated groups of corporations) prepare one tax return for the entire world and then to allocate pro-rata percentages of that global return to different jurisdictions based upon a handful of factors that are relatively hard to manipulate and bear a meaningful relationship to where income is earned such as sales, employment and the location of physical assets.

The virtue of this rule is that someone with intangible assets can fill out one tax return for their domicile regardless of the myriad places where the payers of those intangible assets are located.

In computer science, where it is not uncommon to move between academia and industry, his experience at Google probably will be an asset if he eventually chooses to return to the ivory tower.

«You don't have to miss your expected return by very much over that period of time, due to compounding, to end up with a huge deficit in asset values from where you expected,» Mr. McGee noted.

Since there is an opportunity cost when choosing one investment over another, the steady returns of cash flowing assets must win in cases where all else is equal over those investments which produce no income.

The Strategic Total Return Fund continues to hold just under 30 % of assets in utility shares, foreign currencies, and precious metals shares (where we modestly clipped our exposure in response to very strong price gains in recent weeks).

Now, my stylized history of AIG takes it through the glory days of the 1980s, where return on assets [ROAs] was high, and financial leverage low.

After spending several years in Toronto he returned to Montreal in 2002, where he joined CIBC Asset Management Inc.'s predecessor firm as leader of the Asset Allocation and Currency team.

The Fund has no sales load (a charge for purchasing the fund), no soft - dollar arrangements (where fund managers receive research, data terminals and other benefits in return for paying higher commissions to brokers), no trailing fees (where funds pay brokerages an ongoing percentage of assets in order to bring business to the fund), and no 12b - 1 marketing fees (where shareholders pay an amount over and above management and operating expenses, so that funds can advertise and attract new shareholders).

There should be an expected premium return for illiquid assets, or else, invest in liquid risk assets, and wait for the day where there is a return advantage to illiquidity.

It is not as if they are to the point where they have no assets in the plans and must make benefit payments out of cash flow, but the plans are distinctly underfunded on any basis that assumes fair investment returns over the next 30 years, which would be 5 % per year, and not 7 - 9 % per year.

Money has already been sunk into investments, but if another investment promises greater returns, the opportunity cost of holding the underperforming asset may rise to the point where the rational investment option is to sell and invest in a more promising investment elsewhere.

The income component of commercial real estate also generally helps to temper its volatility as compared to asset classes like stocks, where price movements constitute a bigger portion of overall return rates.

Third, I don't get the last comment, except that the person does not understand that periods where lending is expanding usually offers the highest returns for risk assets.

Then, as debts become unsustainable, there are crashes where the previously favored asset class returns to reasonable pricing or less.

But there are instances in this evolutionary process where that conventional approach must be eschewed in favor of a proactive and tactical strategy that identifies and positions exclusively in positively convex assets with favorable prospective risk - adjusted returns.

Mihir Worah, PIMCO's CIO of asset allocation and real return, discusses what kind of government bonds look most attractive and where the firm is concentrating investments on the yield curve in 2018.

By contrast, there are other firms, such as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar use of technology, but we have real, live investment advisors who deal extensively with clients and match them with the right asset allocation, low - cost underlying portfolios, very low cost, and disciplined rebalancing, which is really an essential risk management and return tool.

Beta is an input into the capital asset pricing model (CAPM) where the expected return of an asset is calculated based on its beta (ß), returns expectations, and a risk - free rate equal to the following:

In short, what we are faced with is a situation where there is increasing leverage among market intermediaries in order to earn high returns off of assets with low unlevered returns.

When the idea became known by institutions after the initial paper was published, a small flood of money came through the narrow doors, bidding up the asset prices to the point where the theory would not only no longer work, but the opposite of the theory would work for a time, as the overpriced assets had subpar prospective returns.

I also remember the 70s where tactical asset allocation returned, as well as gold bugs and other tangential market participants.

This is where the concept of day trading and active asset management comes into play; namely, the desire to beat the market and achieve outsized returns.

The Fund invests primarily in real return instruments, including short - and intermediate - term TIPS, as well as floating - rate loans, asset - backed securities (ABS) and commercial mortgage - backed securities (CMBS) where interest payments on the floating - rate loans and ABS / CMBS are swapped for those based on changes in the U.S. Consumer Price Index (CPI).

Since commodities are a risky asset, they are a class where the returns are noticeably impacted by fear before the financial crisis and after, when quantitative easing began.

Efficient market hypothesis says that it is very difficult for investors to pick a group of stocks and beat the market, but it might be different in the case of asset classes where it is possible to overweigh undervalued asset classes beat the average return of the global stock market.

Moreover, the momentum factor can struggle during periods where investors are reducing risk and asset returns are highly correlated.

Matisse Funds views closed - end funds as a unique opportunity where an investor can purchase a diversified fund and potentially generate additional returns through a change in the relationship between a closed - end funds» market price and its Net Asset Value (NAV) *.

Where are the projects with high returns on assets that can easily be invested in?

It is possible for any strategy to distort relative prices such that the assets inside a strategy get significantly above intrinsic value — to the point where they discount negative future returns over a 5 - 10 year horizon.

All increases in value would be taxed, and assets where the increase can't be measured would assume a 15 % annual return for taxation purposes, with a true - up at the sale of the asset.

Where it was available, I've also included their average estimate for the returns of that asset class, followed by the actual index return for 2011.