Marijuana Companies Funding
Added on 2020-05-16
12 Pages2502 Words116 Views
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Running head: FINANCEFinanceName of the Student:Name of the University:Author’s Note:Course ID:
1FINANCETable of ContentsReview and discussion of article 1:.................................................................................................2Review and discussion of article 2:.................................................................................................3References:......................................................................................................................................4Appendix:........................................................................................................................................5
2FINANCEReview and discussion of article 1:The first article that has been chosen to fit the purpose of this assignment is “FidelityLaunches Fidelity Investment Grade Total Bond Fund”. Fidelity is a top Canadian investmentfirm and this particular bond aims to provide steady income flow and the potential for capitalappreciation in the context of the Canadian investors. With the changing market of fixedincome, the fund flexibility would enable the investors to be active in targeting various sourcesof return. This income strategy offers the following:Flexibility in investment providing exposure to the wider opportunity set inherent in thefixed income market of USATactical management like sector rotation, asset allocation and positioning of yield curve(Moore et al., 2018)Mitigation of downside risk and identification of opportunities for delivering competitiveoverall returnsThe diversification of portfolio, in which the fund could be included in the current coreallocation in the form of a complement to conventional fixed income for client portfolios.It has been identified from the article that Fidelity is involved in managing $136 billion ininstitutional assets and mutual funds. This takes into account $37.5 billion in assets forinstitutional clients. These comprise of corporate and public defined benefit pension,endowments, sub-advised programs, foundations, endowments and the other corporate assets onthe clients’ behalf (Andonov, Eichholtz & Kok, 2015). Thus, the Canadian investors areprovided with an overall range of global, domestic and income-oriented mutual funds along withasset allocation and the high program of net worth.
3FINANCEReview and discussion of article 2:The second article that has been selected for meeting the purpose of this assignment is“Canada's small financial firms get buzz from weed stocks”. This article is related to thefinancial markets prevailing in the Canadian market. The investors have placed bets that thesmaller financial companies of Canada would experience an increase in revenues after theyhelped in funding the marijuana firms ahead of the planned legalisation of the drug of the nationin the year. The Canadian weed firms have offered equities, which are nearly $1 billion in 2017and two-thirds are generated in the final quarter of 2017 (Business.financialpost.com, 2018).From the article, it has been identified that the capital markets of BMO have risen, whichhave helped in raising the revenue of Canoby Growth Corporation to $161.3 million. Thisdenotes that the reputed brokers might take some market share from the smaller brokers.However, the smaller brokers have taken early lead in banking relationships and fundingresearch with the marijuana companies after larger rivals have entered the industry. Moreover,the investors could benefit the small brokers, since the former trade in pot stocks in thesecondary market as well as the increase in value of the warrants hold (Busch, Bauer & Orlitzky,2016). However, there is no clarity about the participation of the biggest Canadian banks in themarket. Hence, it could be inferred that the smaller Canadian brokers would be benefittedimmensely in the financial market.
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