The Benefits Of A Coresatellite Investment Strategy

The core/satellite model approaches investment strategy using the two major viewpoints of stable investment meant to avoid market volatility, and higher risk investment, which is necessary for higher returns. Because of the instability of financial markets, the construction of the core portion of one’s portfolio is necessary to provide a sound base for one’s investments. As the word “core” indicates, these relatively stable passive investments, like ETFs and passive mutual funds, are the bulk of the portfolio in this strategy. The core will often be balanced with other non-equity investments that fluctuate independently from the stock market

Core investment trading is often limited to manage tax losses, and also because this portion of the portfolio is constructed as a long-term investment for the future. With a stable core in place, the satellite portion of the portfolio is intended for higher performance with a smaller percentage of assets. The smaller size of satellite investments limits the overall risk exposure of the client. At the same time, it gives the portfolio manager the opportunity to actively seek returns that outperform their benchmarks.

Unlike core investments, satellite holdings may be traded very rapidly. Tax losses are inevitable in satellite trading, but there is also the enhanced opportunity for short-term gains. Because of the balanced approach of core/satellite portfolio management, such investments should be utilized in any overall financial investment strategy.

Although active portfolios generally provide greater returns, during periods of instability and lower returns, passive long-term investments linked to major market indices offers a secure base to set benchmarks. The satellite investment portion provides opportunity for additional returns exceeding benchmarks. The core/satellite portfolio is constructed to keep tax and other expenses at a minimum – while limiting volatility within the core – and still having an opportunity of outperforming the broad stock market with satellite investments.

When implementing a core/satellite investment strategy, you should consider your financial situation including risk tolerance, and your budget requirements. The performance of core investments, for example, can be constructed with the intention of meeting minimum expected return requirements. Obviously, then the assets used for satellite investments can be seen as “extra” funds granted to your investment manager for alpha performance using higher risk strategies.

Major institutional investors have used the core/satellite approach for years. The concept of managed risk allotting the majority of one’s assets to stable investments, and a smaller portion within one’s risk levels to more active opportunistic investing, is not new.

Aligning Investment Banking Fees with Client Interests

As a boutique investment bank, we expend a lot of effort providing high quality advice and service to our middle-market investment bank clients. We understand the need to align our investment banking services and fees with our clients’ interests, because ultimately, we act as our clients’ advocate. Completing transactions is difficult; we need to be working together. The following is a brief primer related to investment banking fees.

Retainer A credible middle market investment bank will charge a non-refundable retainer. There are two primary reasons for the retainer: (1) it covers the time and expense incurred in preparing the client to go to market and (2) it serves as a screening mechanism to ensure that the client is committed to the transaction. This retainer may be paid as a lump sum, over time or based on achievement of certain activities associated with the transaction process. This retainer should represent a minor portion of the overall fee. Sometimes retainers or portions of retainers are credited toward the success fee.

Success Fee The success fee, representing the majority of compensation, is tied to successful completion of a transaction and is structured as a percentage of the deal size. For capital raises, a fee percentage is applied to the amount of capital raised. The fee percentage increases as one moves from raising senior debt (perceived as less risky and ranges from 1%-2%) to junior debt (more risky) to equity (perceived as most risky and ranges from 5%-10%). Some fee arrangements include an “equity kicker” in the form of warrants. The size of the deal may also influence the fee percentage; the larger the deal the smaller the percentage. For merger and acquisition services, the fee percentage is applied to the overall size of the transaction. Although many business brokers refer to the Lehman formula, few mid-market investment banks use this structure. Instead, they may quote a straight fee percentage or a performance based progressive fee, which increases based on achieving a certain valuation target. The higher the companys valuation (the more dollars the seller puts in his pocket), the higher the investment bankers fee percentage. Progressive fee arrangements provide a strong incentive for the investment banker while aligning the parties’ interests in maximizing the value of the transaction to the client’s owners.

Final Comments. As with most things in life, keep the fee arrangement simple. Haggling over unique, low probability circumstances or creating complex fee structures generally backfires. Complex arrangements tend to cause uncertainty and can result in lack of motivation and focus from the investment banker, not what the client desires. You get what you pay for. Expect to pay a reasonable, market fee. Receiving an engagement letter containing a low fee (potentially with no retainer), indicates a low level of sophistication. Conversely, an engagement letter quoting an out-of-market high fee indicates someone wanting to take advantage of a client. These are not investment bankers you want handling your important deal.

About Wilcox | Swartzwelder & Co. Wilcox Swartzwelder and Co. based in Dallas, Texas, is a boutique investment bank providing merger and acquisition services and corporate finance advisory services to middle market companies in the energy, industrial and infrastructure sector. The Firm delivers a high level of personal service, in-depth industry knowledge, rigorous transaction execution and superior results. Principals have successfully completed almost 100 transactions with aggregate value in excess of $3.6 billion.

Mr. Jason Wilcox 433 E. Las Colinas Blvd. Waterway Tower, Suite 1200 Irving, TX 75039 972-831-1300 www.ws-ibank.com

Securities offered through Petro Growth Energy Advisors, LLC., member FINRA/SIPC.

Tips for Spotting an Investment Scam

Common Sense Rules to Keep Your Hard-Earned Money

By P. Christopher Music

Do you know the tale-tell characteristics that indicate “investment scam?”
Over the course of the last two decades in the financial industry, I have had good fortune, and yes, bad fortune in learning about the realities of investments. When I speak with investors, its not uncommon for some people to insist on certain delusions they have accumulated regarding the subject. This article is an effort to give you some the characteristics of any investment proposal that deserves your careful scrutiny and distrust.
Most investment scams have certain characteristics in common:
1.Secrecy Any investment program that is worth anything can stand up to the scrutiny of financial advisors, accountants, attorneys and anybody else with some investment acumen. Many scams create this confidentiality to give the investor the feeling that they are “on the inside,” privy to investments only available to wealthy families or a select group of fortunate people. The confidentiality requirement is designed to prevent you from communicating with others about your involvement so you will keep believing what the scammers are telling you.

2.High ReturnsWhat rates of return should a person receive for investing money? Well, if it sounds too good to be true, it probably is. While 20% returns may be possible for very speculative investments under certain circumstances, anything beyond that is simply not real over time. If any return on investment is greater than what would normally be earned on that type of asset, it is a good indicator that something isnt right. Consult a knowledgeable financial advisor of your investment plans if you have any doubt.

3.No Track Record — Any investment program should have returns that can be verified by a reputable third party, such as an accounting or law firm. Further, the principals of the program should have fully verified backgrounds with a proven record of successful past investment programs. Moreover, any start-up would have a logical product and a complete business plan replete with reasonable financials and marketing plan. If there is no track record, forget it.

4.Lack of Full DocumentationAny legitimate investment has full documentation, including a prospectus (a document that explains the details of an investment) or offering memorandum (which is for private placement programs, investment programs that are made available to qualified investors and not to the general investor public). Complete contracts would also be provided carefully covering all of the details of the proposed investment. Insist on full disclosure.

5.GuaranteesTo my knowledge, the only investments that provide guarantees are insurance policies. If someone is offering you guaranteed returns or a personal guarantee, its not worth anything. If you lose your money in the investment, the personal guarantee is only as good as the assets of the person issuing the guarantee (if they had the money for the guarantee, why would they need yours?)

6.No Registration with Regulating AuthoritiesIn order to offer an investment to the public, in most cases, the principal creating such an investment will have to register it with the State. Further, the person selling the investment will have to be registered with the State as a securities salesperson or investment advisor. Lack of such registration is a red flag.

7.Offshore Tax Benefits — For American citizens, there are no offshore tax havens. In other words, US citizens are taxed on worldwide income, regardless of the source. Anyone stating that you can save or avoid income taxes by moving offshore is just dead wrong. There is no surer way of creating a problem than attempting to evade taxes. While there are asset protection reasons to use offshore entities, there are no legitimate income tax saving strategies offered offshore that cannot be done domestically.

I know I said 7 tips, but I thought of one more

8.International LureInvesting internationally has a certain allure to it. Its exotic and different. The only problem is that you transfer your assets overseas and the chance of getting them back may be zilch. The complexities of international financial regulations and laws make it a great justification for someone to not be able to deliver on intended investment results. Just keep your money closer to home.

Greed and Desperation
People invest in these programs due to desperation for money or the desire of getting something for nothing. The way to wealth is through investing wisely in your own ability and production and being intelligent enough to not spend everything you make. Falling victim to any investment scam can be a significant setback to your quality of life. Just dont play that game. Learn the natural laws of money and apply them and you will be where you want to be in due course.

Want to make money in your own home Try this one!Earn Income with out Making an investment!Your

Social Media Advertising To The Baby Boomer Generation/p>

This information will provide you with use social media to your great advantage.

If you attract readers with enticing titles, you will notice people go in which you question them.

This allows targeted traffic to your blog site share the post because of their friends who could possibly be interested. This will likely exponentially increase the volume of potential visitors to your website, this may lead to an increase in sales volume.

Have a plan into position before starting an advertising and marketing campaign involving social media marketing. You should see how you desire your page setup, how often it is possible to work towards it, and what you would like each page to appear like. You should have a period of time that you consider reaching your goals.

Answer as much questions people post.

It will require time and patience to create a social websites network for marketing. It is not likely that you just will get out of bed tomorrow morning with a long list of followers quickly. They have happened, but it is highly unlikely your social networking profiles may go viral the minute which you set them up. You should simply build your profile and rehearse patience it can come.

Try interacting with your customers as much that you can. If appropriate, reply to their blogs or Facebook walls.

Utilize the one-two punch of e-mail marketing along with social media marketing. You may also encourage others to sign up for your newsletter by posting a link that will go to more information regarding it.

This website lets users using a forum to question questions on any topic that may be answered by other users. You can become a specialist status should you consistently provide good answers in a specific category.

You will not expect great results without delay. Developing a fantastic social websites strategy takes time and patience.

Ask your customers to resolve market research concerning their usage of social network sites. In case your target market does not cherish social media sites, it probably isn’t worth setting up a presence on social media marketing.

Social websites is a great for announcing promotions or publicizing discounts and specials. People could be more very likely to find you on Facebook in case they have use of discounts. Use social networks to engage your customers can find out more about who you are and feel an individual connection to your brand.

Social networking should not about advertising your products or services. Social media enables you to get a better grasp about the types of customers visiting your clientele. You may also have them thinking about your brand. Also you can distribute product information this way, furthermore you will also have the ability to use social network to possess better customer relationships.

Your website should link around social media profile. This really is easily accomplished by utilizing HTML codes to provide “share” buttons in your website for immediate use of your other pages. These buttons needs to be added to all main pages, RSS feeds and articles or content in order that users can simply share your site content.

Social media can help anyone. It does not matter in the event you own a company, operate a website or market being an affiliate social media marketing can be quite a powerful promotional tool for yourself. Use everything you learned today and find out the best way to use social media advertising in your favor.

Pay a visit to a paid social media jobs page for more information about Compensated Social Media Marketing Work and the ways to generate income on the internet. Please look through the online online seminars available on the page.

Know Why Pune Properties Wakad Are The Wisest Investment Decision

There was a time when Pune was known solely as an educational hub and a post-retirement city for government and Armed Forces personnel. But the scene in Pune today is far from laid back; it is vibrant and cosmopolitan to the core. After several IT and ITes giants chose Pune to set up shop, they attracted a large talent pool from across the country. Pune has always been a hub for automobile manufacturers and this business has also grown in the last few years. All the factors had a cascading effect on the real estate market on the city and there was a sudden property boom. Pune properties Wakad, Baner, Aundh, Kalyani Nagar, Viman Nagar etc witnessed great demand. In fact, the growth story in these pockets still continues.

The advantage of the property boom was that a number of players now offer residential projects with international standards. There are several real estate developers who have been offering 1 and 2 BHK flat in Pune since the last decade and more. These builders have emerged as the preferred option for buyers because they have a competitive edge over the new entrants in the market. In addition, those who have been around for a long time have their superior projects as a proof of their high construction standards. This is not the case with builders who have just one or two projects to their credit. Many reputed builders have a wide array of 3 BHK flat for sale in Pune.

When you are looking for a 2 or 3 BHK flat for sale in Pune it is advisable to choose a builder with enough experience. By doing this, you can be assured about investing your money in the right place. After all, buying a home is the culmination of years of hard work. There are ample flats in Pune for sale, but there are only a few classy projects.

In the last 2-3 years, Pune properties in Wakad have witnessed immense appreciation. They are still a great suburb to invest in. Wakad certainly tops the list when it comes to flats in Pune for sale. Following are a few reasons why Wakad is the preferred choice for many investors:

This area has a vibrant community of IT and ITes professionals. This has lent it a lively atmosphere as a lot of young working professionals are settled here. Most of these people work in the neighboring Hinjewadi IT Park.

The Municipal Corporation has been consistently working to develop wide roads in this area. This area also has a good supply of water and electricity. There are a number of good schools and hospitals in close vicinity, so it is convenient for those who have children.

Pune properties Wakad offers easy and quick access to the Mumbai-Bangalore national highway as well as the Pune-Mumbai Express Highway. If you are looking for a 2 BHK flat in Pune, Wakad is the best choice.

There is a new world-class cricket stadium coming up very close to Wakad. This stadium is sure to open to new avenues in the sporting arena.

All these reasons make Pune properties Wakad a preferred choice.