Monthly Archives: December 2013

Holiday Greetings from AIWMI

As we reflect on 2013, AIWMI wishes to thank all our members, students and partners for their continued support. AIWMI will continue to strive to become a premier education institution providing Financial certifications.

We look forward to working with you all in the new year ahead.

Have a wonderful Christmas and a Happy new year

Ps. We will start publishing on 2nd Jan 2014

ADB: India is still anticipated to grow at 4.7% in FY13 and 5.7% in FY2014

Suggesting that the Indian economy has bottomed out, economic growth accelerated to 4.8% in the second fiscal quarter from 4.4% in the first. Growth was spurred by higher output in both industry and agriculture and a rebound in exports. However, domestic demand remains weak as both consumption and investment continue to grow only sluggishly. Although growth will remain soft in the first quarter of FY2014 owing to delayed investment announcements in the run-up to general elections, it will be supported by export recovery and likely sustained growth in capital expenditure after the second quarter of FY2014, once political stability has been reestablished.

Source: ADB. 2013. Asian Development Outlook 2013 Supplement. Manila.

READ MORE or click here http://www.adb.org/countries/india/economy

Asset managers chafe as Indian regulator cracks down on new funds

Dec 11 (Reuters) – When Franklin Templeton’s India unit wanted to launch a mutual fund that would switch allocation among stocks, bonds, gold and money markets, the Indian regulator baulked, deeming it too risky for domestic investors, according to the company.

View full article at http://uk.reuters.com/article/2013/12/10/india-funds-idUKL3N0JO2RS20131210

Many Indian firms make debut in international bond market in 2013

Move led  by low  interest rates, rising investor appetite and a strategy to diversify exposures into different currencies

Toward a uniquely Indian growth model

India can’t afford to emulate China. In this essay and accompanying video, Mahindra Group chairman Anand Mahindra says the country’s states must compete, not march in lockstep, if India is to develop its own path to sustainable prosperity. more

This article is part of our Reimagining India series, inspired by the landmark book that explores the challenges and opportunities facing the country.

Read more at http://www.mckinsey.com/insights/asia-pacific/toward_a_uniquely_indian_growth_model?cid=reimagining_india-eml-alt-mip-mck-oth-1311

Economic Research: The Unpleasant Math Of Raising China’s Consumption-To-GDP Ratio

The need for China to rebalance its economy away from investment and toward consumption is well known. Also widely known is the policy prescription for that rebalancing: allow more interest rate and exchange rate flexibility, strengthen the social safety net, and make state enterprises pay higher dividends to the state. But how does the economy actually make this adjustment to one that has a higher proportion of GDP derived from consumer spending? Less publicized are the mechanics of how the Chinese economy will move to a higher consumption-to-GDP ratio, and which is the best path to take.

Have You Got an Edge over the Markets?

Most literature or media on finance today tell us how to make money. We are bombarded with stock tips about the next Apple or Google, faced with articles on how India or biotech investing is the next hot thing, or told how some star investment manager’s outstanding performance is set to continue. The implicit message is that only the uninformed few fail to heed this advice and end up poorer as a result. We wouldn’t want that to be us!

Read original full post at Inside Investing Blog here : http://blogs.cfainstitute.org/insideinvesting/2013/11/15/have-you-got-an-edge-over-the-markets/

Defaulted Municipal Bonds Outperform!

Hard to fathom isn’t it!  With 2013 municipal bond default and bankruptcy headlines casting a dark cloud over the municipal bond market, defaulted bonds actually have been up.  The overall performance of defaulted municipal bonds during this time has been positive as the S&P Municipal Bond Defaulted Index has returned a positive 2.79% year to date.  Meanwhile, the investment grade tax-exempt market tracked in the S&P National AMT-Free Municipal Bond Index has seen a negative 2.85% return year to date. Sectors within the municipal bond market are each unique and have their own set of risks and that holds true for defaulted bonds.  Some of those sectors are down significantly. Healthcare related bonds in default have been down over 8% year to date and multifamily bonds down just under 5%.  These have been offset by a recovery of the distressed corporate backed municipal bond market of over 13% and land backed bonds in distress are up over 7.6%. The graphs and returns below detail the performance of several municipal bond sectors and the bonds markets in general.

Read full post at http://www.indexologyblog.com/2013/11/20/defaulted-municipal-bonds-outperform

 

How The Economic Machine Works by Ray Dalio

Please look at this 30 minute video made by Ray Dalio (net worth 13 billion $), the founder of Bridgewater Associates (assets under management of 150 billion $) which is the Biggest Hedge Fund ever.

Video Link

http://youtu.be/PHe0bXAIuk0

Additional Research paper can be viewed here

http://www.bwater.com/Uploads/FileManager/research/how-the-economic-machine-works/ray_dalio__how_the_economic_machine_works__leveragings_and_deleveragings.pdf

S&P 2014 U.S. Economic Outlook – Live Webinar, Dec 16th at 830pm IST

Please join Standard & Poor’s Ratings Services on Monday, December 16th at 8.30pm IST or 10:00 a.m. Eastern Standard Time for an interactive, live Webcast and Q&A.
This event will feature highlights from our 2014 U.S. Economic Outlook and the potential impact on the U.S. sovereign and state and local governments. We are also pleased to present an equity perspective from S&P Capital IQ.

 Register for the complimentary Webcast here.

Throughout this live webcast, you will be able to submit your questions via the web. Please note that Standard & Poor’s Ratings Services offers all of its webcasts on a complimentary basis.

Speakers are:

Paul Sheard
Executive Managing Director and Chief Global Economist
Standard & Poor’s Ratings Services

Beth Ann Bovino, PhD
Chief U.S. Economist
Standard & Poor’s Ratings Services

Marie Cavanaugh
Managing Director, Sovereign Ratings
Standard & Poor’s Ratings Services

Gabriel Petek
Senior Director, U.S. Public Finance
Standard & Poor’s Ratings Services

Sam Stovall
Chief Equity Strategist
S&P Capital IQ

Moderated by:

Ed Sweeney
Senior Director, Communications
Standard & Poor’s Ratings Services

A replay will be sent to all registrants. 

Standard & Poor’s Ratings Services’ Webcasts deliver audio and slides in a streamlined presentation. You will need computer speakers or headphones to listen to the audio stream. You may submit your questions for the presenters in real time via the Webcast interface.

S&P Live Webinar: 2014 Outlook For Asia-Pacific, Wednesday 11 December, 2013, 11am IST

Join us for an interactive live webinar (Register now)on the 2014 outlook for Asia-Pacific economies, financial institutions and corporates. The webinar will provide you insights into the likely shift in the trend for 2014 for key sectors as well as the main risks on the horizon.  Registration is complimentary.

Discussion Topics:

  • Asia’s Economies: Where Are the Risks in the Year of the Horse?
  • Asia’s Financial Institutions: …But Some Asset Quality Bumps For Banks…
  • Asia’s Corporates: …A Rough Ride For Some

Speakers:

  • Paul Gruenwald, Managing Director, Chief Economist, Asia-Pacific
  • Ritesh Maheshwari, Managing Director, Lead Analytical Manager, Financial Services Ratings, Asia-Pacific
  • Terry Chan, Managing Director, Head of Corporate Research, Corporate Ratings, Asia-Pacific
  • Andrew Palmer, Managing Director, Regional Criteria Officer, Asia-Pacific (Moderator)

Please feel free to forward this invitation to your clients or colleagues who may be interested to attend. Copies of selected reports, the presentation and replay will be made available to all registrants.

Standard & Poor’s Ratings Services’ webinars deliver a streamed audio and slide presentation. You will need computer speakers or headphones to listen to the audio stream.

Date: Wednesday , 11 December, 2013 , India, 11:00 a.m.

Register now at http://ratings-events.standardandpoors.com/content/APSG_131211_SEG_AP2014OutlookWebinar_RegForm

Visit SPRatings.com, a free, interactive, and informative portal to access highlights from our credit research offerings. Consider this your portal to perspective: www.spratings.com.

Passively Active: A Passage to India

Globally, over 6 billion U.S. dollars are invested in India Equity ETFs, although less than 200 million via products listed in India.  It’s reasonable to suppose that Indian demand is reflected in the local figures, transferring wealth across Indian borders is both difficult and expensive.  Thus, on the face of it, these figures suggest general indifference to passive investing within the Indian financial community, despite substantial passive interest in India from outside its borders.

– See more at: http://www.indexologyblog.com/2013/12/03/passively-active-a-passage-to-india

Index Inside Active: How to Make Friends with Foes, THURSDAY, DECEMBER 12, 2013 at 5:00 PM IST

S&P Dow Jones Indices cordially invites you to a complimentary live webinar for investment professionals 

India-focused Exchange Traded Funds (ETFs) attracted $240 million in investments in September this year, the biggest monthly inflow in nine months, and posted the best return in one year. Today, more and more portfolio managers are breaking the old asset allocation mold by moving away from static target allocations (e.g. the 60% equities/40% bond split) and leveraging index-based instruments, notably ETFs, as building blocks for dynamic allocations. How can this change in asset allocation thinking guide you?

Join this informative webinar and learn about strategic, tactical and alternative-asset allocation strategies using index-linked instruments.

·  Innovative and unique ways professional managers can use index  

instruments to execute on active asset allocation strategies

·  Why some asset managers believe asset allocation can be more

efficient with index-linked vehicles when compared to simple

securities selection

·  Best indexing practices across asset classes and geographies

THURSDAY, December 12, 2013

5:00 PM IST , Register here

or click on this link http://now.eloqua.com/es.asp?s=795&e=753445&elq=30438521de024290909227e6cd66ab21

Credit Market Pulse: November 2013

Credit Market Pulse is the newest market research publication from S&P Capital IQ. Produced with the busy investment management, credit officer and financial risk reporting audience in mind, S&P Capital IQ’s Credit Market Pulse is the first publication for the credit risk industry that provides a holistic overview of the health and trends of global credit capital markets leveraging the extensive analytical intelligence and depth of data from our own institution. The benchmarks, trends and individual company analyses examined in this, our inaugural issue, are intended to provide financial professionals with a better understanding of the risks and opportunities underlying their investment or lending decisions as well as how their portfolios perform against the market.

Read report at http://img.en25.com/Web/StandardPoorsRatings/Credit-Market-Pulse-Nov-2013_FINAL.pdf?sp_mid=24876&sp_rid=22560

What’s Behind S&P’s Rating Affirmation On India

Rating On India Affirmed At ‘BBB-/A-3’; Outlook Remains Negative

On Nov. 7, 2013, Standard & Poor’s Ratings Services affirmed the ‘BBB-‘ long-term and ‘A-3’ short-term unsolicited sovereign credit ratings on India. The outlook on the long-term rating remains negative. India’s institutional strengths and high international reserves support our investment-grade rating on India. However, we note a marked slowdown in real growth, which complicates the government’s debt dynamics and ability to implement reforms

What’s Behind Rating Affirmation On India

Standard & Poor’s affirmed the sovereign rating of India at BBB- with a negative outlook on November 7, 2013. In this CreditMatters TV segment, Standard & Poor’s Director of Sovereign Ratings Takahira Ogawa discusses the reasons behind the affirmation and the outlook for the sovereign.

Do investors have too much information?

FORTUNE — A new-fangled government intervention is in the works that just might pummel your retirement nest egg, once again.  Rather than train her sights on prosecuting Wall Street executives, SEC Chief Mary Jo White has decided to focus her attention on a hitherto unknown problem, investor “information overload.” White’s latest salvo is a rallying cry for corporations to step into the shadows, pick up their pitchforks, and wage an assault on investor intelligence.

Read full post at http://management.fortune.cnn.com/2013/10/29/investor-information-overload-sec/