Assignment on Investment Strategy of Organization

Added on - 21 Apr 2020

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Investment Strategy
TABLE OF CONTENTSQuestion -1.......................................................................................................................................4Company Profile..........................................................................................................................4Five Year Performance of the Company.....................................................................................4Historical return on investment.................................................................................................10Discounting cash flow analysis and rate of return.....................................................................11Discounting cash flow analysis and rate of return.....................................................................11Question-2......................................................................................................................................12Investment Strategy...................................................................................................................12Macro economic factors and its impact on financial market.....................................................13Macroeconomic factors and their relationship with mutual funds............................................15Asset Allocation.........................................................................................................................16Risk Factors to be assessed........................................................................................................23Question-3......................................................................................................................................24References......................................................................................................................................26
TABLE OF FIGURESFigure 1: Five year Share price of the Google.................................................................................5Figure 2: Five Year Share Price of Ford Motors.............................................................................6Figure 3: Trailing Total Returns of Google.....................................................................................7Figure 4: 10 Year performance of Google.......................................................................................8Figure 5: Ten Year Financial Performance of Ford Motors............................................................9Figure 6: Financial Health Ratios of Ford Motors.........................................................................10Figure 7: Financial Health Ratios of Google.................................................................................10Figure 8: Macro economic factors and their sign of relationship with mutual funds....................15Figure 9: Portfolio profile of Picet- Timber R USD......................................................................17Figure 10: Graph representing the performance............................................................................18Figure 11: Associated Risk of the Fund........................................................................................19Figure 12: Performance History of Schroder ISF Asian Total Ret A1..........................................20Figure 13: Five Year Performance in %........................................................................................20Figure 14: Performance History of Fidelity Euro Bond A-Acc-EUR...........................................21Figure 15: Performance History of BNPP L1 Equity Best Sell Euro Classic (EUR)....................22Figure 16: Performance Statistics of Templeton Global Bond A Acc (EUR)...............................23Figure 17: Regression Analysis of Gazprom’s Eurobonds............................................................25
QUESTION -1Company ProfileGoogle LLC is a multinational America based technology company providing specializedservices of internet. Some of its services are providing technologies for online advertising,serving as search engine mechanism, cloud computing and other related software and hardwareservices. The company was established in the year 1998 as a private company by two PhDstudents of Stanford University, California - Larry Page and Sergey Brin. They ownedapproximately 14% of Google’s shares and controlled 56% of the total voting powers of thestockholder through stock super-voting. The company held an IPO (initial public offering) in theyear 2004 on 19thAugust. In the same year, the company moved to its headquarters in MountainView, California, renamed the corporation as Googleplex (Google Inc. 2017).The Ford Motor Company, known as "Ford" is a multinational automaker located in Americawith headquarters in Dearborn, Michigan, a suburb of Detroit. The company was established byHenry Ford on June 16, 1903. Ford is engaged in selling automobiles and commercial vehiclesunder its own brand name (Ford Motors. 2017). It also sells the most luxury cars under the brandname of Lincoln. The Ford Company also owns Brazilian based SUV manufacturer, Troller, andAustralian car manufacturer FPV. The company also produced tractors and related automotivecomponents in the past. Ford owns 8% stake in UK based Aston Martin and a 49% ownership inJiangling of China. It also various joint-ventures located in China (Changan Ford), Taiwan (FordLio Ho), Thailand (AutoAlliance), Turkey (Ford Otosan), and Russia (Ford Sollers).Five Year Performance of the Company
Figure1: Five year Share price of the Google(Source: Alphabet Inc C GOOG. Morningstar rating. 2017.)The above chart shows that there has been a steady increase in the share prices since 2013. Theshare price of the company as on 8thNovember 2017 was $1058.29 USD. The marketcapitalization on the same day stood at USD 722.5 Billion. The opening stock of the companywas 1039.85. In the year 2012, Google generated average annual revenue of $50 billion for thevery first time. The revenues went up by 36% from previous year. The company’s performancewas very significant in past 10 years (Alphabet Inc C GOOG. Morningstar rating.Financials.2017).
Figure2: Five Year Share Price of Ford Motors(Source: Ford Motors Company.Financial.2017)The share price of Ford Motors is much lower than that of Google. The trend of share prices ofboth the companies also differs in the sense that the share price of Google has followed anincreasing trend from past many years; on the other hand, the share prices of Ford Motorswitness a fluctuating trend every year. The share price of the company was the highest in 2014,and from then it has followed a downward trend.
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