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Do institutional investment flows matter? Arthur Clayton sheds light on this subject by looking at relevant historical examples of changes in institutional flows, their impact on asset prices and what trends we can expect in the near future.
When companies seek to conserve cash they reduce capital expenditures. This can lead to reduced productivity. Customer financing enables companies to increase their productivity, profitability and cash flow.
Owners of businesses often reach a natural decision to leave at some point in their career. Giving up ownership to a new party, investor, private equity group or even to the next generation is never an easy task. However planning and preparation could ensure that you don’t miss any crucial steps in the process.
The banking sector has offered a mixed bag to investors over the last few years. Long suffering shareholders have held on to hopes of a turnaround, underpinned by support from the government and possibly even general improvement in economic conditions.
However as time goes by, we wonder if loyal investors are being fed stories of hope along with a quiet and steady stream of new share issues resulting in dilution. While recapitalization was required for regulatory reasons, we wonder, how much value has actually been eroded as a result of repeated issue of equity by banks.
Financing a football club comes with its set of risks including bankruptcy. Mark Bladon analyses a club’s sources of income, its main overheads, traditional sources of financing and establishes why creativity is required to protect a bank’s downside risk.
The relationship between the price of a bottle of wine and the score given at tastings by experts shows that the price may have more to do with marketing intangibles than the science of wine making says Prof. Brian Kantor.
SA has seen the rand weaken on a recent slew of bad news ranging from Moody’s rating downgrades of both SA’s and its key corporates’ debt (see “Ratings update: Moody’s indicates further downgrades may follow yesterday’s downgrade of SA government bonds”, 28th September 2012, contact details below), S&P’s downgrade, violent strike action and increased political tensions, to worsening global economic activity and renewed concerns over the euro zone debt crisis.
In an increasingly complex world of escalating costs, taxes, regulation, economic turbulence and litigation, family offices must adopt a more progressive approach to corporate governance and risk management to preserve their raison d’être.
In the current environment of historically low interest rates and yields, investors would do well to consider the benefits of dividend investing. Overtime, dividends have contributed a large proportion of the total return from equities, while the dividend component of the total return has also proved far less volatile. With the debate still raging over whether central bank actions around the world to stimulate global economic growth will ultimately prove inflationary, the potential for dividend growth as a ward against inflation should also be considered.
While historically the gold price has always been linked to inflation, Arthur Clayton examines the Asian markets and how demand for gold in India and China has fuelled the bull run in the past decade.