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Size Of The Global
Fund Management Industry |
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Assets of the
global fund management industry increased for the third year running in
2006 to reach a record $55.0 trillion. This was up 10% on the previous
year and 54% on 2002. Growth during the past three years has been due to
an increase in capital inflows and strong performance of equity markets.
Pension assets totaled $20.6 trillion in 2005, with a further $16.6
trillion invested in insurance funds and $17.8 trillion in mutual funds.
Merrill Lynch also estimates the value of private wealth at $33.3
trillion of which about a third was incorporated in other forms of
conventional investment management.
The US was by far the largest source of funds under management in 2005
with 48% of the world total. It was followed by Japan with 11% and the
UK with 7%. The Asia-Pacific region has shown the strongest growth in
recent years. Countries such as China and India offer huge potential and
many companies are showing an increased focus in this region.
In this global competitive market which is growing aggressively, Trade Center Bank is simply a financial intermediary that allows a group of
investors to pool their money together with a predetermined investment
objective. Trade Center Bank has a fund management team which is
responsible for investing the pooled money into specific securities
(usually stocks or bonds and money markets).
Trade Center Bank is one of the best investments ever created because
it's very cost efficient and very easy to invest in (you don't have to
figure out which stocks or bonds to buy). |
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| Trade Center Bank Field Of
Activities |
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Having taken time to
explain the concept, we shall look at two main benefits of Trade Center Bank over
individual investment in stocks or Money Markets. Ability to diversify
investments without having to invest a lot of money and the opportunity for
professional managers to do the job for you (i.e. you can go to rest once you
put in your money as professional fund managers take it up and properly invest
on your behalf).
Diversification helps to reduce investment risks. By owning stocks of multiple
companies, the fund€™s share value is not devastated if an individual stock
performs poorly.
Expertise of the fund manager in training, time and the resources allows best
and informed investment decisions on behalf of Trade Center Bank investors.
Selecting securities to buy, allocation of available money and timing to
purchase or even Diversification is all done by the fund manager or the
management team.
Some of you may ask what exactly is Stock, Bonds, Money Market Funds and Asset
Allocation! |
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| Money Market Funds |
These funds are a great
place to park your money. Whether you're storing money for emergencies, saving
for the short-term, or looking for a place to store cash from the sale of an
investment, money market funds are a safe place to invest. These funds invest in
short-term debt instruments and typically produce interest rates that double
what a bank can offer in a checking account or savings account and rival the
returns of a CD (Certificate of Deposit).
The beauty of money market funds is that you can often write checks out of your
account and they provide a high amount of liquidity (ability to cash out
quickly) not found in CD's. These funds are not FDIC insured, but in the history
of money market funds no money market fund has ever folded, yet many banks have
failed and many investors with over $100,000 lost out. |
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| Bond Funds |
Bond funds carry more risk
than money market funds are often used to produce income (useful in retirement)
or to help stabilize a portfolio (diversification). The primary types of bond
funds are:
Municipal Bond Funds -uses tax-exempt bonds issued by state and local
governments (these funds are non-taxable).
Corporate Bond Funds -uses the debt obligations of U.S. corporations.
Mortgage-Backed Securities Funds - uses securities representing residential
mortgages.
U.S. Government Bond Funds -uses U.S. treasury or government securities.
Another way bond funds are often classified is by maturity, or the date the
borrower (whether it be the bank, the government, a corporation or an
individual) must pay back the money borrowed. Using this classification bonds
are often called short-term bonds, intermediate-term bonds, or long-term bonds.
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| Stock Funds |
| Stocks funds are considered
riskier than bond funds (although certain bond funds can be very risky) and are
used for growing your money. Money market funds and bond funds typically provide
returns just a percentage or two above inflation, but stock funds should do much
better over long periods of time. |
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| Asset allocation |
The different asset classes
are stocks, bonds, real-estate, derivatives and commodities. The exercise of
allocating funds among these assets (and among individual securities within each
asset class) is what investment management firms are paid for. Asset classes
exhibit different market dynamics, and different interaction effects; thus, the
allocation of monies among asset classes will have a significant effect on the
performance of the fund. Some research suggests that allocation among asset
classes has more predictive power than the choice of individual holdings in
determining portfolio return. Arguably, the skill of a successful investment
manager resides in constructing the asset allocation, and separately the
individual holdings, so as to outperform certain benchmarks (e.g., the peer
group of competing funds, bond and stock indices).
Some other techniques and funds which Trade Center Bank focuses on:
Domestic Equity Funds - Trade Center Bank mainly focuses on stocks offered by
different U.S. companies. With this type of fund there is a wide range of
offerings that takes into consideration the size of the company, the stability
of the company, growth and the potential value of the company.
Hybrid Funds - Hybrid funds are generally made up of different investment
sectors in one fund. For example, a usual mix may be the pairing of equities
with bonds or blue chip stocks with riskier ones.
Index Funds - Index funds imitate the selections and amounts of specified market
indexes like the S&P 500. They are generally unmanaged keeping costs down.
Enhanced Index Funds - Enhanced index funds are actively managed funds applying
a portion of their resources to outperform their benchmark indices. |
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Trade Center Bank Account (s) And Techniques |
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Trade Center Bank uses all
the techniques existed in all these markets to perform a high performance trades
with a categorized & well managed portfolios depending on in what condition the
members accounts are.
Suppose that we have a main account. We divide this account to Sub-Accounts
(Depending the member's accounts we have developed several categorize of
Sub-Accounts). We have a portfolio to manage the main account generally and then
we have different portfolios for each category of sub-accounts.
e.g. When you compound your earnings for 10 months we transfer your money to one
of our Long-Term portfolios and we are definite that you are going to be with us
for a long time and therefore you can earn much more money with us.
The other category of accounts are VIP members which are handled completely
different than normal accounts. They are in some portfolios which we can turn
them to cash whenever our members want to withdraw their initial capitals. On
every portfolio we run on each category of accounts we always make sure that the
element of risk in losing the initial capital is near to zero (of course no one
can claim that in these kind of markets they can omit the element of risk 100%).
If we lose in one or more of our trades (which is rear) then we have the members
initial capital backed up with our reserves which they are also derived from our
profits which we made from members money. In this way we can always make sure
that no member loses his/her own money.
Occasionally, we add information about our researches and projects in "Business
Resources" to keep members up to date about Trade Center Bank. Please review this
page time to time for more info. |
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