CAPITAL MARKET AND BANKING ASSESSMENT

Capital Market and Banking Assessment

Capital Market and Banking Assessment

Introduction

The portfolio management allows you to combine information about your portfolio existing products, while providing new opportunities and business and market restrictions, so you can separate the success of products that fail. With a clear vision performance and resource allocations in the structure, we can make decisions about the assets we will be investing in considering, the overall growth and profits. Its portfolio resulting product is constantly monitored, allowing us to optimize performance and factors of attractiveness and the technical feasibility, market potential, financial profit, the complexity, and strategic adaptation. The availability of this valuable information can easily weigh risk and benefit in all portfolio of product development and maximize the likelihood of broad commercial and financial success. In this paper we will be evaluating the portfolio of British American Tobacco, BG Group Plc, SABMiller Plc, Vodafone Group, and British Sky Broadcasting Group. Apart from the detailed evaluation of all these five assets, we will also look into the phenomenon of buy and hold portfolio exercise.

Portfolio Management Strategies

The few portfolio Management Strategies are as follows:

Indexing 

It is to replicate the behavior of a bond market index that acts as a reference made.

Buy and hold

It is to acquire the actives and hold to maturity while avoiding the risk of insolvency and trying to get their yield to maturity as large as possible.

Immunization

This is to create a fixed income portfolio performance is assured with the long ago from a defined time horizon. A variant of this strategy is contingent immunization is a hybrid form of management active and passive

Correspondence between cash flows

This is where a portfolio that has a structure designed to finance a series of payments through the performance and asset value that compose it.

British American Tobacco

Introduction

British American sells tobacco products in 180 countries and holds leadership positions in around 50 of its markets. The firm is the third-largest global cigarette maker behind China National Tobacco and Philip Morris International. British American's brands include Dunhill, Kent, Pall Mall, and Lucky Strike. The firm also sells roll-your-own and smokeless tobacco products. British American owns 42% of Reynolds American and 31% of ITC Limited (the leading Indian cigarette maker).

Current Development

Despite flat cigarette volumes during the first half of 2012, British American Tobacco BTI managed to grow its adjusted earnings per share by 7% and increase its interim dividend 11% to GBX 42.2. Although we believe that the company's stock is currently fairly valued around GBX 3,300, we note that the firm will continue to steadily return cash to shareholders via growing dividends and persistent share repurchases, and as such could be attractive to income seeking investors. During the first six months of 2012, British American Tobacco sold 178 billion cigarettes, on par with the 180 billion sold during first-half 2011 driven by the company's global drive brands (GDB, including Dunhill, Lucky Strike, Kent, and Pall Mall) which posted solid 4% growth during the first half. However, if you account for the excess sales of ...