Tuesday, December 4, 2007

Research paper on Hedge Fund Performance

By Burton Malkiel - 2004 data

http://www.princeton.edu/~bmalkiel/Global%20Hedge%20fund%20NEW.pdf

CISDM paper
http://cisdm.som.umass.edu/research/pdffiles/understandingperformance.pdf

Saturday, August 11, 2007

Trust Services - DSP Merrill Lynch launches Trust Services in Delhi and Northern Region

http://www.dspml.com/070720.html


DSP Merrill Lynch launches Trust Services in Delhi and Northern Region


New Delhi, July 20, 2007: DSP Merrill Lynch Trust Services Limited (DSPMLTS), a wholly owned subsidiary of DSP Merrill Lynch Limited (DSPML), today announced the formal launch of Trust Services for High Net Worth individuals in New Delhi and North India.

Launching Trust Services in Delhi, Mr. Pradeep Dokania, Head of Global Private Group at DSP Merrill Lynch said “Economic growth and market capitalization are the main drivers of wealth creation and there has been considerable shift in the planning needs of wealthy individuals and families. The booming economy has created large number of entrepreneurs in India and in Delhi, creating wealth for themselves and their families at a young age. A Trust is a strategic tool for Estate Planning & Wealth Preservation which enables clients to achieve their financial objectives as well as objectives for the family. It is a part of the financial planning process.”

Mr. Kevin Horrocks, Chief Trust Officer – International Trust & Wealth Structuring Merrill Lynch said “Globally, Estate Planning is considered an integral part of wealth structuring and it’s the right step to achieve both individual and family goals for the long term. There is a growing change in the mindset of people resulting in a better understanding of the benefits of using trusts to structure wealth.”

A Trust is an estate planning solution that allows either an individual or a married couple to structure their wealth effectively for the benefit of both current and future generations and is governed by a Trust Deed that sets out the terms of the trust agreed between the Settlor and the Trustee.

The Trust Services will be offered by DSP Merrill Lynch Trust Services. DSP Merrill Lynch Trust Services will have access to and the support of Merrill Lynch International Trust & Wealth Structuring, which has over 20 years experience in offering trust services to a global clientele.

A Trustee is responsible for administering the settled wealth of clients, both during and after their lifetime and for overseeing the management of assets in accordance with the financial goals of the clients/settlors. A Trustee has to ensure that trust assets are preserved, protected, carefully managed and distributed to the beneficiaries in accordance with the terms of the trust as determined by the settlor.

Pradeep Dokania further adds that “India is a very important market in the area of Trusts and DSP Merrill Lynch is well positioned to provide a credible solution for the special situations and estate planning needs for families, given our understanding of the local requirements backed by strong global expertise in managing various Trust Services across the globe.”

“We at DSP Merrill Lynch firmly believe that estate planning is for sophisticated and wealthy clients to ensure asset creation, preservation and distribution in a phased manner.”

Mr. Horrocks further adds “At Merrill Lynch we have robust systems and procedures to accommodate appropriate structuring and administration of clients wealth and we provide a high degree of service. We draw on the experience of Merrill Lynch International Trust & Wealth Structuring, which has been offering trust services to clients throughout the world. The biggest advantage of Trust Services is to structure and preserve wealth for the benefit of future generations and see that it passes to them in the most efficient manner.”

Initially, Trust Services will be offered to resident Indians. DSPMLTS offers high quality, comprehensive wealth management structuring services under one roof.

DSP Merrill Lynch Trust Services Limited (DSPMLTS) is a 100% subsidiary of DSP Merrill Lynch Limited. DSPMLTS will advise clients in structuring their wealth to achieve various estate planning goals. In addition, the Trustee will administer that wealth in a proper and systematic manner in the event of settlor’s incapacity.

DSP Merrill Lynch Limited (DSPML) is one of India’s leading wealth management, capital markets and advisory companies. Merrill Lynch holds close to a 90% stake in DSPML. DSPML has been ranked highly by several respected international publications including Asiamoney, Institutional Investor & Finance Asia magazine. DSPML Global Private Client has been ranked Best Private Bank in India overall for the third consecutive year by Euromoney.

Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 37 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies, with more than $1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com.

Sunday, August 5, 2007

Making Marketing Frugal - Start Up

The Economic Times, 27 July 2007 Page 17
Jacob Cherian, jacob.cherian@timesgroup.com

The optimal route to making marketing frugal will always be to have a good enough product that markets itself.

Jagdeep Kapoor (Samsika Mktg) says: "to build a brand the least you need to do is to spend money. Instead you need to spend more time and dhyaan (thought)."

If an entrepreneur needs to spend on marketing then he does not deserve to exist," says Mahesh Murthy (VC - Seedfund). We discourage the entrepreneur to spend on advertising; instead we tell them to focus on spending the amount on differentiating the product. We look at how we can tweak the product to cause insane consumer delight. The key, he says, is to make the product so interesting and useful that people recommend it to others; thereby stimulating word-of-mouth - the most effective form of marketing.

Murthy emphasizes: 'When you are small it is imperative to have a differentiated product. Only when your company is big and fat you can spend on marketing a 'me-too' product.

Jageep Kapoor warns, "Use advertising like you are using salt. To make a serving of dal, use a fist of dal and a pinch of salt." According to him a little advertising is sufficient with other attributes of the product in plenty.

For details see the article in ET.

Mutual Fund Marketing Strategy – Fidelity Mutual Fund

Mint, 13th July 2007, PAGE 14

Starting December 2006, the 15th largest MF in India with assets of Rs. 8,651 crore, Fidelity has begun making complete monthly disclosure of the portfolios of its four equity and debt funds.


MFs in India are required to disclose their portfolio on a half-yearly basis only. , But to provide more transparency to investors, MFs in India have made full monthly disclosures of their portfolios. Fidelity also started disclosing monthly as distributors have been clamouring for the change.

The move has helped the fund house to increase its market share from 1.73% of industry assets at end of Nov 06 to 2.15% as of end-June.

Thursday, July 26, 2007

Human Effort is a popular term

"Industrial Engineering is Human Effort Engineering. It is an engineering discipline that deals with the design of human effort in all occupations: agricultural, manufacturing and service. The objectives of Industrial Engineering are optimization of productivity of work-systems and occupational comfort, health, safety and income of persons involved." (Narayana Rao, Definition of Industrial Engineering: Suggested Modification, Udyog Pragati, Oct-Dec 2006, pp. 1-4.)

I used the words human effort to bring out the uniqueness of industrial engineering among engineering disciplines and also to use the meaning of the word 'industry' which is habitual employment in useful work (The concise oxford dictionary of current english, 7th ed., 1982). My basic aim is to make industrial engineering understandable to the lay people. Of course its focus and purpose are clearly specified.

Today I came across, two definitions which also use words 'human effort.'


Lean production: The pursuit of concurrent improvement in all measures of manufacturing performance by the elimination of waste through projects that change the physical organization of work on the shop floor, logistics and production control throughout the supply chain, and the way human effort is applied in both production and support tasks. (Michle Baudin)

Methods Engineering: A technique used by progressive management to improve productivity and quality and reduce costs in both direct and indirect operations of manufacturing and nonmanufacturing business organizations. Methods engineering is applicable in any enterprise where human effort is required. It can be defined as the systematic procedure for subjecting all direct and indirect operations to close scrutiny in order to introduce improvements that will make work easier to perform while maintaining or improving quality, and will allow work to be done smoother, in less time, with less energy, effort, and fatigue, and with less investment per unit. The ultimate objective of methods engineering is profit improvement. (Benjamin W. Niebel)

Tuesday, June 26, 2007

Bear Stearns wants to play bull in India

ET, 27-6-2007, page 20

Bear Stearns, seventh-largest securities firm in the world is exploring the possibility of setting up operations in India. It has assets worth $335 billion and employs about 15,000 people worldwide. It has 8 offices in US and one in London.

Big retail brokers in India

The ET, 27-6-2007, Page 20

By terminals Angel and by number of sub-brokers Karvy Stock broking

Broker -------------------------- Terminals
Angel -------------------------- 5081
Motilal Oswal ------------------- 4179
SMC Global --------------------- 3231
Indiabulls Sec------------------- 2700
Geojit PMS ---------------------- 2410
Bonanza Portfolio---------------- 2177
ICICI Sec ---------------------- 1051
Anagram Sec---------------------- 999
India Infoline------------------- 970
Khandwala Integrated------------ 762

Broker--------------------------- subbrokers
Karvy Stock Broking-------------- 15000
Angel Brojking------------------- 2408
Peerless Securities-------------- 1000
anagram Securities--------------- 964
SMC global Securities------------ 800
UAE Exchange and Fin ------------ 700
Motiala Oswal Sec---------------- 638
ICICI Securities ---------------- 587
Bonanza Portfolio---------------- 536
Asit C Mehta Invest-------------- 320

The study was done by Dun and Bradstreet

Co-operative Advertising - Two brands in the same ad

Brand Equity ,The ET, 27-6-2007, Page 4

Double Impact

It's all about optimizing spends, as co-bradning can offest costs or boost the media budget. - Mahesh Chauhan, President, Rediffusion DYR

It makes sense for brands to join hands and make ads when you're in non-conflicting businesses - Rahul Agarwal, Vp - marketing, Lenovo India.

Thursday, June 14, 2007

Disinterested sales person

Knowledge@Wharton feature - published in EI Brand Equity 23 May 2007 Page 1

Disinterested, ill prepared and unwelcoming salespeople lead to more lost business and bad-world-of-mouth than any other management challenge in retailing.

Motivating sales people to receive the customer with an interested and smiling face is a challenge.

Wednesday, June 13, 2007

FATHERS DAY

WHEN IS FATHERS DAY

In 2007 Fathers Day date is 17th June and don't forget to make this day special for you dad.

FATHERS DAY HISTORY

The history of Father's Day goes like, in 1909, Spokane, Washington, Sonora Smart Dodd was listening to a Mother's Day sermon. The lecture inspired her to have a special day dedicated to her father, William Jackson Smart, who had brought her up and her siblings single-handedly after their mother died. She could realize the greatness of her father and wanted to let him know how deeply she was touched by his sacrifices, courage, selflessness and love. She held the first Father's Day celebration on 19th of June 1910, on the birthday of her father. The idea soon caught on and in 1924, President Calvin Coolidge supported the idea of a national Father's Day on the petition sent to him by Dodd on the acceptance of fatherhood. In 1926, a National Father's Day Committee was formed in New York City.

However, it was thirty years later that a Joint Resolution of Congress gave recognition to Father's Day. Another 16 years passed before President Richard Nixon established the third Sunday of June as a permanent national observance day of Father's Day in 1972 in the honor of all good fathers that contribute as much to the family as a mother, in their own ways. Even before Dodd came into the picture, Dr. Robert Webb of West Virginia is believed to have conducted the first Father's Day service in 1908 at the Central Church of Fairmont. However, it was the colossal efforts of Dodd, the devoted daughter of the Civil War veteran who refused to remarry for the sake of his six children and took upon himself all the duties, love and care of a mother, that eventually led it to a national observance.

From a mail sent by Mr. Motilal Oswal, Chairman and M.D., Motilal Oswal Securities Limited.

Wednesday, June 6, 2007

Prudential Financial shuts down Prudential Equity Group

http://www.suntimes.com/business/415988,peg060607.article

The Newark, N.J.-based company did not say why it is closing the unit, which last year turned a profit of $34 million before taxes.

Prudential Equity Group trades stocks for institutional investor clients like pensions and mutual funds. The business distributes research reports about stocks, politics, the economy and investment strategies to these clients to help them decide how to invest their money.

Last year, the division reported revenue of $260 million, a small fraction of the company's $32.49 billion in revenue.

Prudential expects shutting the business down will cost $110 million, with severance pay for workers costing about $75 million. These costs will be recorded this quarter, Prudential said.

Last year, Prudential Equity Group agreed to pay $600 million in fines and reimbursements following a Securities and Exchange Commission investigation that concluded Prudential brokers defrauded at least 50 mutual funds between 1999 and 2003. (notice the importance of compliane function)

NTN - News to Note 7-6-2007

Economic Times, 7-6-2007 page 10

Prudential closes institutional brokerage

Us insurance company Prudential Finance said that it will shut down its institutional stock research and trading business, Prudential Equity Group. ending a rocky 26-year stay on Wall Street. Nine offices in US as well as in London, Zurich, Paris and Tokyo will be closed. 400 employees will be terminated as operations are wound down during the quarter ending June 30.

Prudential's strategy is to be in businesses where we have significant scale, said Prudential spokeswoman Theresa Miller.

"The resaerch and trading markets are really competitive, really challenging, and are not an area where we've been able to achieve that scale or success for our clients, for our shareholders and certainly our employees."

The move furthers Prudential's widrawal from the securities industry, where shrinking commissions and regulatory changes have weeded out dozens of traditional brokers. Reforms in 2002 pushed through by then Newyork attorney General Eliot Spitzer make it more difficult for Wall Street firms to cover research costs. Stock trading for big institutions is also under pressure, thanks to thinning fees and competition from electronic systems and from the biggest Wall street houses.

Tuesday, May 29, 2007

At Morgan Stanley, a game of catch up

To regain firm's perch, CEO John J Mack pushes big bets and big deals.

Mint, Page 19, 30 May 2007

Monday, May 28, 2007

The Self Destructive Habits of Good Companies - Jagdish Sheth

Prof Jagdish Sheth, Professor of Marketing Strategy, Goizueta Business School, has brought out seven deadly sins that good companies commit and end up destroying themselves, in his book "The Self Destructive Habits of Good Companies."

Economic Times, Page 24, 29-May-2007

Monday, May 21, 2007

Online Commodity Portal

www.commodityonline.com was started by two journalists. George Iype is MD. it offers news to public at no cost. Iype ahd his friend Binu Alex have invested Rs 2 crore in the portal from their own sources and friends. They hope to breakeven within a year.

Sunday, May 20, 2007

NTN(MSMI) 21 May 2007

The Economic Times May 19 2007

page 1
Citi arm to buy 85% in Sharekhan for Rs 650 cr (more details in M&A blog)

Monday, May 14, 2007

Managing Security Market Intermediaries

Managing Stock Broking Firms
Managing Investment Banks
Managing Mutual Funds


I want to cover above three topics in my course "Managing Security Market Intermediaries." I started offering this course from last year. This year, I have to strengthen the course by preparing cases on various companies and issues. I started collecting materials for this purpose on Merrill Lynch, Goldman Sachs, Lehman Brothers and Fidelity Investments.

KVSSNRao