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Private Banking Advisory

News and Comment:

 How independent are financial advisors?
 

 The experienced Partner for the Investor with a substantial Portfolio
    July  2010 > Contact

 




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IPO - Initial Public Offers


Raising investment capital for the creation and expansion of productive businesses is the main raison d'etre for all securities markets.

This simple fact often gets lost in investment markets that are dominated by enormous trading volumes in the secondary markets.

But the only justification for these markets - apart from being an outlet for the gambling instinct that many individuals are possessed with - is the fact that more investment capital will be forthcoming if investors have the certainty that they can access their capital if they need it for any reason.

It is obvious that investors will only participate in new share issues if they expect the future value of the new shares to be higher at some point in time. IPO's therefore are usually 'priced to sell' and are offered at a discount to shares of similar companies that are already well-established in the secondary market.

Nevertheless, it pays to pay attention to the prospective valuation of new share issues as the vendors - and their advisors - have an understandable incentive to price the shares at as high a level as they can get away with. A naive Financial Press often supports inflated pricing levels suggested by overly optimistic promoters and projections of future growth that are based on hope rather than on rational analysis.

The motivation of the selling shareholders also warrant close scrutiny. Are they just trying to cash in on the public's appetite for new shares or are they really interested in having the public shareholder as long-term partner in their business? All-too-often the controlling shareholders are happy to take the Public's money but are using the first opportunity to rid themselves of public shareholders when it is to their advantage to do so.
   


 

 

PBA will help you with the following:|

 

What is private in Private Equity Funds?

Should you participate in Euro experiment?

What can rebalancing your portfolio achieve?

How can you protect yourself against states going bankrupt?

Should you trust your financial advisor?

Are you in- or outside your hedge fund's sidepocket?

Implementing an appropriate asset allocation

Can financial advisors really be 'independent'?

MIFID - a flop for the private investor

Are your management and performance fees calculated correctly?

Can you trust relatives when investing?

Pitfalls of investing in ETF's, ETN's, ETC's and ETT's

What is a step-down express certificate?

Are Hedge Fund Billionaires good for your financial health?

Should you consider 'Newcits', and what are they?

Understand why some ETF's may not perform as you expect

How to survive the global war between savers and speculators

Is your financial adviser a professional or a business man/woman?

Why traditional diversification is no longer sufficient

How to protect yourself against currency 'reform'?

Risk aspects of property and money market funds

Is my money used to pay for banker's bonuses?

What is the best way to invest in Gold?

How should you Financial Adviser be compensated and what role does the remuneration structure of his employer have?

Does it matter where my investment manager is located?

Who is ultimately responsible for the regulation of my investment fund?

Are investments in the USA sensible given proposed changes in the tax law?

Where are my confidential financial affairs still treated with respect?

How to protect yourself from toxic financial instruments

Does past performance help in picking investment managers or funds?


Should you stay away from firms that use Celebrity endorsements?


How to understand what performance statistics hide

Do you need a financial advisor that walks your dog?

Not all regulators are created equal. Which ones should you trust - and what does it mean when an advisor is regulated?


What type of Institution will suit your needs better? Large or Small Banks, Private Banks, Independent Asset Managers or Boutique Managers?

What are the implications if Hedge Funds hold massive cash reserves?

How meaningful is the fact that a Hedge Fund has had only 15 losing months during the past 15 years?

Are larger Hedge Funds or Fund of Funds necessarily better for you?


What is the correct way to set targets for performance fees on Hedge Funds?

Is a 'High-Water-Mark' sufficient to protect the interests of Investors in Hedge Funds?

Are Hedge Funds really a new Asset Class?

There are so many different Indices of Hedge Fund Performance - which one shall I pay attention to?

 


 




 

   
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