Month: February 2017

Diversify The Investment Portfolio And Domestic Financial Market

Diversify The Investment Portfolio And Domestic Financial Market; Diversify the investment portfolio investment strategy aims to reduce risk by combining a variety of investments, such as stocks, bonds, real estate and other asset classes, as well as geographical diversification of investment. And requires good management of the investment portfolio of the risks of Guaranteed Money System Scam investing in the assets and avoid measuring the direction of price movement in the assets of the portfolio was negative in the same direction accuracy.

And diversification of the investment portfolio is happening at two levels: the first asset allocation, and at this level is the distribution of the funds invested on a number of major asset classes (stocks, bonds, etc.).

Investing

Investing

The second investment distribution of the different investment options within a particular asset class, such as the distribution of the shares allocated to the various sectors of the investment. The aim of this diversification is to reduce risk in the investment portfolio. It is often volatility in the value of the portfolio is limited due to the lack of the possibility that all asset classes, or the performance of companies in different industrial sectors in the value price is moving at the same time or the same rate. And reduces the diversification of the pace of all of the ups and potential landing and allows more performance in line with the different situations of economic conditions, and may help diversify investors to balance and diversify the risk in their portfolios process, and can diversify the investment also includes a time scale of investments, which is supposed to conform with the investor’s objectives and the need for liquidity, such as short-term investments, medium-term and long-term.

But the global financial crisis showed that the diversification of investment portfolios had a limited impact, as any investor (individuals or institutional investors) investment type to include categories of assets investment variety, or invested in mutual funds, have suffered financial assets invested in the same drop any indication speed of the shares, contrary to what was many wealth management and investment managers believe that the investment categories were not much related to each other, and that investing in a diversified investment categories will reduce the risks. But, it may be appropriate to say that what happened was not able to diversify investments in the portfolio of investment protection can be interpreted that the global financial crisis, described as the worst crisis since World War II, has been long negative impact all economies and global financial markets, and greatly influenced the low investor confidence.

As for investment diversification of investment portfolios and the availability of investment tools and models required in our local market, despite the availability of some of those tools, but they are not commensurate with the size of the economy and financial market of the kingdom, where he represented in 2008 the Saudi economy of 17 per cent of the economic size of the area Middle East, and accounted for 43.7 per cent of the economic size of the Gulf cooperation Council (GCC). As for the size of the financial market represents 34 per cent of the size of the financial market for the Middle East, and accounted for 44.9 per cent of the GCC financial market size.

And thus may be useful to some vital additions made in the construction of the financial market framework commensurate with the size of the local economy and its position in the map of the economies of emerging countries, and provide a variety of investment options for domestic investor allows the possibility of building a diversified investment portfolio includes all investment asset classes, and most important: First, the availability of investment channels investment offers in different asset classes, because the investment opportunities for domestic investors with weak investment channels, and the limited opportunities for diversification in the portfolio investment to the investor in the investment asset classes, and the high cost associated willing to diversify their investment portfolio to invest in different asset classes. for example, despite there are some real estate investment trusts, but they often may target a certain segment of investors by setting the minimum subscription, and all real estate investment trusts available do not provide investment real estate a long-term oriented to own real estate assets could during which the investor to benefit from growth in the real estate asset values ​​over time with getting a regular income returns, in addition to that there is a real estate investment fund or non-real estate investment available through the trading units.

Second: The availability of the option of investing in government bonds, companies of all categories of investors (institutions / individuals) of strategic importance, an important part of the diversification of the investment portfolio choices, and therefore perhaps the presence of the depth of highly liquid government bonds and corporate market, and the existence of versions of government bonds for periods of different maturities, and the development of standard Reference interest rate Benchmark, as a tool to measure the financial return and the amount of risk than investing in bonds, yield curve yield curve represents the most important foundations of the financial market building.

Third, the financial market need to be some important instruments such as short-selling, and trading option contracts Options for the shares, and other tools, and so for its those tools of possibility and guarantees for money investor insurance, and create a balance and another dimension to the market. As well as the inclusion of some of the indicators for circulation to enable the investor to invest in them instead of several companies. And the availability of dual-listing of some companies from the regional markets. For example, the inclusion of CFD Society Scam companies or regional trading in the local market allows the investor the possibility of diversifying the investment portfolio at a lower cost with no exposure to the issue of the cost of changing the currency.

Conclusion:

Although some believe that the diversification of the portfolio investment can be deducted seeking to obtain maximum returns of those who favored a high degree of risk, because it is mostly the investments allocated to different sectors and classes with different performance of assets, and therefore affects With different performance, and thus affect the overall performance of the investment portfolio, so I believe that diversification friend to those who wish to preserve the wealth with achieving some of the returns may not be high. Thus, it is likely that the global financial crisis, and losses resulting from fear and instability of financial markets means that many investors are looking to wealth preservation rather than maximizing revenue. The investment diversification helps to meet these goals, and perhaps the decline in investor confidence in financial markets supports the return of this kind of investment styles.

Green Strategies International Family Business

Green Strategies International Family Business Began to terms such as “environmental orientation,” “environmental protection”, “environmental sustainability” – terms appearing in the vocabulary

What does it mean to have a “ecosystem approach”?

There is no doubt that mankind began to exercise a strong and clear effect on the natural environment in conjunction with the Industrial Revolution witnessed by Europe in the nineteenth century, which has not only led to a large number of production resources, but has also supported the start of the mass consumer paid the behavior of modern technology. In addition to the global growth of the population, this influence has grown significantly since then. Early environmental initiatives focused primarily on the principle of the province, in addition to focusing on the establishment of nature reserves or to protect endangered species. However, over the past decades, it has been using the term “environmental orientation” broadly to refer to a public perception that some Orion Code Scam resources are scarce and that in order to keep this life for future generations, there must be a new way to exploit these resources and to reduce the human impact on nature and the reduction of wasteful behavior.

Family Businesses

Family Businesses

To international organizations like the UN bodies dedicated to organize and study the effect of human behavior on the natural environment, and often they fall within governments and specialized ministries concerned with the priorities of the national environment. Nevertheless, there are still significant tendency of the doubt, and controversy and misunderstanding regarding the impact of human civilization on nature. The term “environmental orientation” on a number of complex themes:

Human affected in different ways: environmental challenges such as water shortages, scarcity of natural resources, pollution and other growing impact on individuals, communities and countries as far as its impact on private companies, albeit to varying and different ways.
There is disagreement about the focus areas: identification of the most important and most urgent challenges for the adoption of methods of treatment are always on the priorities of the communities and individuals affected.
There is no magic formula: ranging initiatives and the formulation of environmental policies from simple improvements in the field of waste management and ending with an investment of several million dollars in research and development to develop new environmentally friendly technologies.
Why is the family business occupies a good position in the “environmental orientation”?

It was compared with a group of family companies with a non-family companies or public, where it was the study of their properties and search on a large scale. These properties include elements such as long-term vision, commitment and interaction of the obvious for companies with immediate social environment, in addition to the challenge of making business decisions when dealing with emotional ties to the family. Interestingly, many of those characteristics qualify the family business to become leaders in the field of environmental sustainability:

Family businesses often think they are progressive and future-oriented, due to their goal to continue the work of their companies for generations to come, and in order to ensure sustainability and continuity began to observe the pressure-oriented global natural resources. Often now include long-term strategies on how creativity in the exploitation of primary resources.
Family businesses are considered deeply rooted in their communities, and often the two linked by history and close ties. Through the strong interaction and regular with the social and natural environment, the leaders of family businesses has a direct perception of the challenges their community and witness a turning natural environment.
Family businesses are also inherently tend to have strong relationships with the parties concerned, especially with its customers, it is also aware of the possibility of large marketing-related environmental work.
Many leaders realized that environmentally friendly practices in certain industries provide a clear competitive advantage, and that topics such as renewable energy can be exciting investment opportunities of interest.
This unique combination of catalysts that are characterized by family businesses, form the basis for the development of them until they become players creators and actors in the environmental sector.

Environmental initiatives in the family business

History shows about century ago odd that the founders of successful family businesses are the ones who put the principles of honorable dealing with the environment and careful use of resources – whether it stems from genuine interest in nature or because of economic thought. For that reason, and since the advancement of industrialized nations, many of the leading family business began applying green strategies successfully, whether it be through increased efficiency in their production lines, or by installing solar panels on the roofs of their headquarters or by the involvement of interested parties through product launches “green ” not constitute a seemingly never a problem for them. So, when you start the family business to “environmental orientation”, they often do so:

Through the integration of environmental policies in their companies or business use “green” models as an investment opportunity.
Through the activities of corporate social responsibility or charitable donations for the benefit of their own institutions or other associations.
By participating in projects and government programs to address the challenges facing their communities.
A lot of families that have the work of environmental challenge as the essence of the work of their companies, such as the automotive sector industries, and the oil, mining and other heavy industries, often these issues, realize early and take the lead in addressing them, hitting here, such as the giant Italian family, which owns the Fiat, in addition to being invested in new technologies to reduce carbon emissions, the company has developed applications allow drivers to control their behavior while driving and reduce their use of fuel. On the other hand, the American family that owns and manufactures the Ford announces it is its adherence to the policy of climate stability and too much emphasis on the development of high-efficiency hybrid cars to reduce carbon emissions in general, so that leads an executive committee senior specialist with the vice president and the parties executive involved in the company’s product development strategic operations In line with the company’s objectives on climate change.

Family industrial company multinational Siemens has taken a step further, who predecessors in this area, where the merging of integrated environmental technologies in its diverse group, and so they address environmental challenges by developing new systems for the power supply and through creativity in their products as well. As the German technology giant that invested significant resources to develop new technologies in the introduction, and in order to provide its customers the most efficient solutions in the use of resources. The company aims to profit at least 40 billion euros through a range of environmental activities in 2014. Siemens also launched -kpr.s. Mojtmaa- program “Green City Index”, which measures the environmental performance of cities rates worldwide.

AP Moeller group companies – Group Danish giant Orion Code Scam one of the largest maritime and land transport companies in the world, and also has a leading company in the field of exploration and production of oil. Maersk Group has set the Sustainability Council mission reporting directly to the Executive Board of the Group. The focus areas of interest to the group about the reduction of carbon emissions, pollution control, biodiversity protection and management of equipment life cycles, they are watching their progress through the annual profits.

Tata Consultancy Services ranked -the subsidiary of Tata Group Hindi family of companies ranked seventh in the ranking of “green ratings” for Newsweek in 2011, the company stresses a lot on the subject of environmental sustainability, taking into account climate change as “the greatest threat that affects the economic stability and on vulnerable communities and society as a whole. ” Their approach consists of two main areas, one hand, it is based on the support of their customers to improve the sustainability policy through products and solutions that they offer, on the other hand, work on environmental Xiaodhooda company followed by detailed plans of action.

Whatever the reason behind their commitments (if a firm belief that environmental challenges must account or they business strategy), it is clear that the largest groups of family companies in the world has risen to the challenge and frank confrontation of the issues involved.