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Target investment mix |
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Target investment mixThe percentage mix of stocks, bonds, and short-term reserves that an investor considers appropriate based on his/her personal objectives, time horizon, risk tolerance, and financial resources.Target investment mix Similar MatchesExpected return on investmentExpected return on investmentThe return one can expect to earn on an investment. See: Capital asset pricing model. Multilateral Investment Guarantee Agency (MIGA)Multilateral Investment Guarantee Agency (MIGA)Agency established by the World Bank that offers various forms of political risk insurance to corporations. Zero investment portfolioZero investment portfolioA portfolio of zero net value established by buying and shorting component securities, usually in the context of an arbitrage strategy. Underinvestment problemUnderinvestment problemThe mirror image of the asset substitution problem, in that stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to debtholders. Ethical investmentEthical investmentThe policy of selecting stocks for your portfolio partly on the grounds of the ethical or environmental code pursued by the companies in question.If you ask ten people what they think is ethical you will get ten different answers. Ethical views, by their very nature, are subjective.The major exclusions tend to be arms, alcohol, tobacco, gambling, animal testing, environmental damage and the payment of exploitative wages in developing countries. But the list could extend almost indefinitely and a complete screening by the Ethical Investment Research Service (EIRIS) would eliminate 60% of the FTSE 100 index.You can screen out negative factors or adopt a positive screening process and select companies with a clear environmental policy, for example.An ethical fund or portfolio of shares requires an appropriate performance benchmark. It will not reflect the market movements as a whole as it will hold a higher than average proportion of smaller companies which are much more volatile than blue chips.EIRIS maintains a database which you can use to filter an existing portfolio or to build one from scratch, using your own selection of a wide range of criteria. EIRIS: 020 7840 5700. e-mail: ethics@eiris.org website http://www.eiris.orgIn February 2000 FTSE International launched a set of stock indices called FTSE4Good. This is a tradeable and benchmark index which requires member companies to meet certain ethical standards for inclusion. Further Suggestionslocal authority investmentInvestment Company Institute (ICI) Brown field investment Association of Investment Trust Companies Value Line investment survey Finite Life Real Estate Investment Trust (FREIT) Statutory investment Registered investment company Unit investment trust split capital investment trust return on investment Direct Foreign Investment Investment management dividend reinvestment plan investment trust protected investment products Alternative Investment Market investment club Capital investment Association of Unit Trusts and Investment Funds Short term investment services Foreign portfolio investment Investment Company with Variable Capital investment Leveraged investment company |
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