Market Monitor Newsletter Editi

Total Page:16

File Type:pdf, Size:1020Kb

Market Monitor Newsletter Editi Markets and Securities Services October 2017 | Issue 131 Welcome Gavin Callan EMEA Head Product Management Agency Securities Lending I want to take this opportunity to provide an update from two recent beneficial owner events that took place: the 22nd Annual European Beneficial Owners’ Securities Finance & Collateral Management Conference and a Citi-hosted event titled “The Evolution of Securities Financing & Collateral Optimization”. For both events there was a strong turnout from the beneficial owner community, including a number of first-time client attendees. The dominant theme during both sessions was the changing nature of the market place. For many years after the financial crisis, there was a recognition that the regulatory environment was going to change, but it is only more recently that a number of these changes have become tangible. As a result, market participants are now redefining their strategies and approaches to securities lending to ensure that their operating models are compatible. It should be noted that the regulations are not harmonized by region or by stakeholder and at times are directly opposed. For example, on the demand side, traditional borrowing counterparties are required to have term financing in place, and hence seek to borrow high-quality liquid assets (HQLA) on a termed basis, while a key source of supply in the market, UCITs funds, are required to maintain liquidity by not entering into transactions greater than 7 days’ duration. So it is not surprising to find that the industry is dynamically evolving. One area of interest is the rationale for clients to participate in securities lending. Traditionally for long-only managers, the focus has been on obtaining alpha as a result of participating in securities lending. With the changes in the derivatives collateralization space, clients are looking at securities lending as an efficient and flexible mechanism to generate the necessary margin for derivatives as required. This is naturally a positive development for the industry and reaffirms the important role that securities lending plays in the overall financial markets. Another key area to highlight is the array of new structures that are under review or already live. Examples include pay- to-hold transactions, peer-to-peer lending, CCP routed trading, collateral in the form of a pledge instead of title transfer, and vendor-based platforms to connect peer-to-peer market participants. The one thing in common with all of these structures is that the driver is regulation. As an agent lender, we are engaged on all of these structures and we will be a key participant in their evolution. Beneficial owners can expect to hear a lot more about the development and evolution of these structures over the coming months. Additionally, it is worth noting that regulation impacts organizations in different ways and this helps to explain why so many alternative structures are under consideration. In summary, the industry is evolving quickly — so watch this space! October 2017 | Market Monitor 2 US equities 1 JinkoSolar Holding Co (JKS) suffered as conversations continue regarding sharp increase in demand coupled a lackluster earnings report on 6 the Trump Administration’s decision with thin supply across the street September. reporting a miss on on the tariff. has significantly elevated the cost earnings per share and, despite to borrow. Applied Optoelectronics Inc (AAOI) shipments surging, a fall in profits. a manufacturer of advanced optical Other notable stocks for the month There is a continued negative semiconductor devices, continues included: stance on the solar industry with to suffer from analyst concerns added momentum this month as it is • AutoNation Inc. (AN) around the company’s operational expected that President Trump will health and from news this month • SNAP Inc. (SNAP) approve a tariff that will more than that one of Applied’s largest double the cost of cheap foreign • ELF Beauty (ELF) customers, Amazon (AMZN), is solar panels that have assisted in the • Revlon Inc Class A (REV) replacing parts typically provided industry’s success in recent years. by Applied with that of a competitor. • Eros International PLC (EROS) The stock ended down approximately This has created relentless negative 13% for the month, and we saw • Best Inc (BSTI) sentiment among investors, thus strong demand with supply remaining • Baozun Inc (BZUN) during September, we saw an thin across the street, thus keeping increase in short interest to a • Blue Apron Holdings Inc (APRN) cost to borrow at a premium. We staggering 73% of the float. This expect the rates to remain elevated US cash and money markets During the September Fed meeting, nine years in the making and one banks’ capacities to overpromise the Committee brushed aside of the unconventional and truly and underdeliver due to the unique concerns that inflation remained monumental policy decisions pressures on each to conform to the below target. While no change to the undertaken by the Fed to drag various regulatory ratios did keep main policy rate was announced, the the country out of the financial the re-investment desk vigilant until signs pointed towards another hike crisis. Amounts to be rolled off will the last dollar was placed. Four- to to come in the December meeting, be relatively small initially in the six-month activity in bank product a rise that had been discounted attempt to avoid market disruptions attracted attention as spreads by the market for some time. With but will ramp up each month. widened from their near-term lows. no hike in the announcement, the With threats of additional Fed hikes Geopolitical events and especially meeting was not without interest for on the horizon, the preference for weather-related stories did not Fed watchers. The Fed announced floating-rate product still remain dampen the narrative of a steady a well flagged yet important well entrenched. Opportunities climb in economic activity. Most step to unwind the purchases of remained in structured repo analysts expect these trends to Treasuries and mortgages and deals, especially in non-traditional continue into 2018, barring any the first step to normalize the collateral such as equities. large macroeconomic shocks. balance sheet. Securities held in the portfolio will be allowed to Desk activity focused on funding mature without reinvestment. This for quarter-end. While this is a well begins a process that has been rehearsed exercise at this stage, 1 Bloomberg. October 2017 | Market Monitor 3 US Treasury and agency The specials market was active rate. In the case where the Fed the month. Moreover, there were during September, led by the hasn’t established a specific rate several off-the-run Treasury and current 10-year note (9128282R0 but instead a range, the charge agency issues in demand as well. 2.25 8/15/27), which traded would be 200 bps below the low end The street began preparing for through the TMPG (Treasure Market of the Fed Funds range. In today’s quarter-end in earnest by mid- Practice Group) fail charge on environment, with the 1.25/1.00 month. Market participants began several occasions. It’s not unusual Funds range, the fail charge to throttle back on their balance- for the 10-year note to trade as would be -2.00% or 200 bps. The sheet intensive, marginally special a deep special during the first remainder of the specials market borrows as they began to lighten leg of its 90-day cycle, as this was quite good. The 2-year note their balance sheets’ load in is its “single-issue” time period. 9128282T6 1.25 8/31/19, 3-year note preparation for the quarter-end However, what was unusual was the 9128282V1 1.375 9/15/20, 5-year statement day. On the actual 10-year commanded a rebate rate note 9128282S8 1.625 8/31/22, and quarter-end, Friday 29 September, through the TMPG fail charge, and even the 7-year note 9128282U3 GC backed up 1.27%, which was a it happened on multiple occasions. 1.875 8/31/22 (it’s unusual to see full 20 bps higher than the previous The TMPG fail charge scheme the 7s trade special) — these all day’s GC level. The back-up in rates enables the entity being failed to traded with a healthy amount of lasted 3 days as the actual quarter- charge the failing entity a penalty scarcity value, averaging 35 to end fell on the weekend. fee of 200 bps below the Fed Funds 50 bps through GC on average for Asia-Pacific equities 2 Australia Syrah, which is hoping to capitalise price this week, the stock has Harvey Norman (HVN AU) on the growth markets for lithium- advanced 467% this year to rank franchisees may face less ion batteries used in electric vehicles among the world’s top performing favourable trading terms with and energy storage, will use most stocks. Chairman Sun Hongbin suppliers following the retailer’s of the funds to continue developing has overseen a buying spree that decision to make it clear it was not a graphite mine in Mozambique. has elevated the company’s net liable to pay for their stock. Days gearing to almost 400%, according Beach Energy (BPT AU) agreed after Harvey Norman changed to analyst estimates. Some of the to buy Origin Energy’s (ORG AU) the accounting treatment for acquisitions, such as an investment conventional oil and gas business, franchisee receivables in its 2017 in a struggling internet company, Lattice Energy, for AUD1.59 accounts, analysts were still trying have raised concerns at ratings billion (USD1.25 billion) in a deal to understand the implications companies. set to triple the Adelaide-based for franchisees and Harvey company’s reserves. Beach will ZhongAn Online P&C Insurance Co.
Recommended publications
  • VIP, in Short) Is a Close Cousin of the Systematic Investment Plan (SIP)
    Value-averaging Investment Plan with Indian equity funds – An analysis Srikanth Meenakshi and Shankar Bhatt, FundsIndia.com A relatively new method of making periodic investments for regular investors has caught the interest of financial advisors and the investing public. This new method, called Value-averaging investment plan (VIP, in short) is a close cousin of the Systematic Investment Plan (SIP). The main difference between the approaches is that in VIP the monthly amount of money invested varies according to a formula as opposed to SIP wherein the invested amount remains constant. Internationally, the VIP method has been implemented successfully using, primarily, mutual funds. It has out-performed comparable SIPs yielding, according to published results, 1% better IRR. (Reference: http://www.sigmainvesting.com/advanced-investing-topics/value-averaging) We set out to test the premise of VIP out-performance in the context of Indian mutual funds. One mutual fund – Benchmark funds – has already implemented this method with one of their funds (an index fund), with promising results. In this article, we present our results with a broader set of managed equity funds and suggest a couple of ways an investor can implement the protocol themselves for their portfolio. About Value-averaging investment plan First, a few words of explanation about VIP. This method was first identified and designed in 1988 by Michael Edelson, a professor at the Harvard University. The basic premise is that money is invested in periodic intervals in a portfolio in such a manner that the portfolio value keeps tending towards a pre-determined value based on a target rate of return.
    [Show full text]
  • Dollar Cost Averaging - the Role of Cognitive Error…………….Page 44
    City Research Online City, University of London Institutional Repository Citation: Hayley, S. (2015). Cognitive error in the measurement of investment returns. (Unpublished Doctoral thesis, City University London) This is the accepted version of the paper. This version of the publication may differ from the final published version. Permanent repository link: https://openaccess.city.ac.uk/id/eprint/13172/ Link to published version: Copyright: City Research Online aims to make research outputs of City, University of London available to a wider audience. Copyright and Moral Rights remain with the author(s) and/or copyright holders. URLs from City Research Online may be freely distributed and linked to. Reuse: Copies of full items can be used for personal research or study, educational, or not-for-profit purposes without prior permission or charge. Provided that the authors, title and full bibliographic details are credited, a hyperlink and/or URL is given for the original metadata page and the content is not changed in any way. City Research Online: http://openaccess.city.ac.uk/ [email protected] COGNITIVE ERROR IN THE MEASUREMENT OF INVESTMENT RETURNS Simon Hayley Thesis submitted for the award of PhD in Finance, Cass Business School, City University London, comprising research conducted in the Faculty of Finance, Cass Business School. April 2015 1 Table of Contents List of Tables and Figures………………………………………………………...page 3 Abstract…………………………………………………………………………….page 6 Summary and Motivation…………………………………………………………page 7 Chapter 1: Literature Review…………………………………………………...page 13 Chapter 2: Dollar Cost Averaging - The Role of Cognitive Error…………….page 44 Chapter 3: Dynamic Strategy Bias of IRR and Modified IRR – The Case of Value Averaging……………………….
    [Show full text]
  • Choosing Between Dollar-Cost and Value Averaging
    This article and more available at Investopedia.com Page 1 of 3 Choosing Between Dollar-Cost And Value Averaging by Andrew Beattie (Contact Author | Biography) As investors, we face a bit of a dilemma: we want high stock prices when we sell a stock, but not when we buy. There are times when this dilemma causes investors to wait for a dip in prices, thereby potentially missing out on a continual rise. This is how investors get lured away from investing and become tangled in the slippery science of market timing - a science that few people can hope to master. In this article, we will look at two investing practices that seek to counter our natural inclination toward market timing by canceling out some of the risk involved: dollar cost averaging (DCA) and value averaging (VA). Dollar Cost Averaging DCA is a practice where an investor puts a set amount of money into investments at regular intervals, usually shorter than a year (monthly or quarterly). DCA is generally used for more volatile investments like stocks or mutual funds, rather than for bonds, CDs, etc. In a broader sense, DCA can include automatic deductions from your paycheck that go into a retirement plan. For our purposes, however, we will focus on the first type of DCA. (To learn more, read DCA: It Gets You In At The Bottom and Dollar-Cost Averaging Pays.) DCA is a good strategy for investors with a lower risk tolerance. If you have a lump sum of money to invest and you put it into the market all at once, you run the risk of buying at a peak, which can be unsettling if the prices fall after the investment, which is known as timing risk.
    [Show full text]
  • HOW VALUE AVERAGING ADDS VALUE Achieving Investment Goals Even in Tough Economic Times
    VA Investment Software HOW VALUE AVERAGING ADDS VALUE Achieving Investment Goals Even in Tough Economic Times Written by Bruce Ramsey November 15, 2010 Copyright 2010 VA Investment Software, All rights reserved How Value Averaging Adds Value The purpose of this document is to demonstrate that by using the Value Averaging (VA) investment strategy, the probability of achieving the target value for a portfolio is very high over a 5 or 10 year time frame. In addition, it will show that above average returns are possible without increasing risk. It will also demonstrate that Dollar Cost Averaging (DCA) fails in most instances of helping investors to achieve their savings target. Value Averaging is a formula investment strategy which has be shown to achieve lower average costs and higher rates of return than alternative strategies. The power of the Value Averaging method derives from its marriage of two proven but separate techniques: Dollar Cost Averaging and Portfolio Rebalancing. Value Averaging is not new as it was first researched and written about in 1988 by then Harvard Professor Dr. Michael Edleson. By considering a portfolio’s expected rate of return (something that the "Dollar-Cost Averaging" method neglects), the "Value Averaging" method helps to identify periods of over and underperformance. The mathematical imperative of Dollar Cost Averaging, the time honored purchase of equal periodic amounts of stock or mutual funds, forces investors to buy more shares when prices are low than when they are high, increasing overall returns, on average. Rebalancing, on the other hand, is most often applied to mature portfolios and mandates the periodic adjustment of portfolio allocations back to a set policy, forcing a strong policy of “buy low / sell high” discipline into an investors trading decision making.
    [Show full text]
  • Destinations Dollar Value Averaging
    Working on the time-tested principle of “buy Destinations low, sell high,” Brinker Capital has thoughtfully and systematically built the Dollar Value Dollar Averaging (DVA) strategy. Value This approach to reinvesting your assets in the fi nancial markets is monitored Averaging by our investment team. Systematically increases market exposure from the start to a predetermined end date. Involves periodic rebalancing to slowly increase your market exposure. In time periods where the market experiences a decline, more of your portfolio will be invested in the market because the market is believed to be more attractively valued. In time periods when the market rises in value, less of your portfolio will be invested in the market and more will remain in cash. A thoughtful, systematic way to invest in the FULL Y markets. PA RT IALL Y INVESTED IODIC INVESTM INVESTED PER ENT For the investor willing to take on risk over the investment period. However, Dollar Value the long-term to meet goals. Brinker Capital Averaging will likely underperform relative Brinker Capital’s Destinations mutual created this strategy on the time-tested to a buy and hold or Dollar Cost Averaging fund program offers a variety of principle of “buy low, sell high.” asset allocation strategies, each strategy if the market generally rises during targeting a specifi c investment We systematically increase market exposure the investment period, as the account will objective. Whatever an investor’s goals from the start to a predetermined end date; have lower exposure to positive market may be, we have a strategy to help returns. reach them.
    [Show full text]
  • TBA Trading and Liquidity in the Agency MBS Market
    James Vickery and Joshua Wright TBA Trading and Liquidity in the Agency MBS Market • While mortgage securitization by private 1.Introduction financial institutions has declined to low levels since 2007, issuance of agency mortgage- he U.S. residential mortgage market has experienced backed-securities (MBS) has remained robust. Tsignificant turmoil in recent years, leading to important shifts in the way mortgages are funded. Mortgage securitization • A key feature of agency MBS is that each by private financial institutions declined to negligible levels bond carries a credit guarantee by during the financial crisis that began in August 2007, and Fannie Mae, Freddie Mac, or Ginnie Mae. remains low today. In contrast, throughout the crisis there continued to be significant ongoing securitization in the agency • More than 90 percent of agency MBS trading mortgage-backed-securities (MBS) market, consisting of MBS with a credit guarantee by Fannie Mae, Freddie Mac, or Ginnie occurs in the to-be-announced (TBA) forward Mae.1 Agency MBS in the amount of $2.89 trillion were issued market. In a TBA trade, the exact securities in 2008 and 2009, but no non-agency securitizations of new to be delivered to the buyer are chosen just loans occurred during this period. The outstanding stock of before delivery, rather than at the time of agency MBS also increased significantly during the crisis the original trade. period, from $3.99 trillion at June 2007 to $5.27 trillion by December 2009.2 • This study describes the key institutional features of the TBA market, highlighting recent 1 Fannie Mae and Freddie Mac are the common names for the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, trends and changes in market structure.
    [Show full text]
  • Working Paper Series
    CORE Metadata, citation and similar papers at core.ac.uk Provided by Kent Academic Repository ISSN 1748-7595 (Online) Working Paper Series Should You Stop Investing in a Sinking Fund When it’s Sinking? John Mingers Kent Business School Kim T Parker Kent Business School Working Paper No.183 December 2008 1 Should you stop investing in a sinking fund when it’s sinking? John Mingersa a Kent Business School, University of Kent, Canterbury CT7 2PE, UK phone: 01227 824008, e-mail: [email protected] (corresponding author) Kim T. Parkerb b Kent Business School, University of Kent, Canterbury CT7 2PE, UK phone: 01227 823604 Abstract Many people invest regularly in sinking funds that track stock market indices. When stock markets themselves sink significantly, as in the current credit crunch, investors face a decision as to whether they should continue paying into a falling fund, or switch payment to a risk-free deposit account until the market recovers. Most financial advice is to keep investing on the grounds that as the unit price falls more units can be purchased and that this is ultimately beneficial (dollar-cost averaging, DCA) However, most academic studies show that DCA is sub-optimal, at least to a lump sum strategy. In this paper we consider a specific, tax-free fund – the Individual Savings Account (ISA). We demonstrate, both analytically and numerically, that in a situation of perfect information a stop and restart policy can beat DCA. From these results we test some heuristics that could be used by an everyday investor under real-world conditions of uncertainty and volatility.
    [Show full text]
  • Report Earnings Casually
    1 Notes from the Diehards VII Reunion San Diego, CA 23-24 September 2008 By: Paul Globerson, Mel Lindauer, Ed Rager, Paul Stratton, and Victoria Fineberg Issued on: 07 October 2008 Table of Contents 1 Day-1 – 23 September 2008 ....................................................................................... 1 1.1 Mr. Bogle’s off-the-record remarks.................................................................... 1 1.2 Mr. Bogle’s planned discussion.......................................................................... 3 1.2.1 The Economy.............................................................................................. 3 1.2.2 The Markets ................................................................................................ 3 1.2.3 Vanguard................................................................................................... 11 1.2.4 Personal..................................................................................................... 14 1.2.5 Enough ...................................................................................................... 15 1.3 Questions and answers with Mr. Bogle ............................................................ 17 1.4 Mr. Bogle and Dr. Bernstein............................................................................. 22 2 Day-2 – 24 September 2008 - Panel Q&A ............................................................... 25 1 Day-1 – 23 September 2008 1.1 Mr. Bogle’s off-the-record remarks Jack Bogle: I prepared an outline for today’s
    [Show full text]
  • Value Averaging
    14111_Edleson_ffirs_2p.j.qxd 8/31/06 9:21 AM Page iii Value Averaging The Safe and Easy Strategy for Higher Investment Returns Michael E. Edleson Foreword by William J. Bernstein John Wiley & Sons, Inc. 14111_Edleson_ffirs_2p.j.qxd 8/31/06 9:21 AM Page ii 14111_Edleson_ffirs_2p.j.qxd 8/31/06 9:21 AM Page i Value Averaging 14111_Edleson_ffirs_2p.j.qxd 8/31/06 9:21 AM Page ii INTRODUCING WILEY INVESTMENT CLASSICS There are certain books that have redefined the way we see the worlds of finance and investing—books that deserve a place on every investor’s shelf. Wiley Investment Classics will introduce you to these memorable books, which are just as relevant and vital today as when they were first published. Open a Wiley Investment Classic and rediscover the proven strategies, market philosophies, and definitive techniques that continue to stand the test of time. 14111_Edleson_ffirs_2p.j.qxd 8/31/06 9:21 AM Page iii Value Averaging The Safe and Easy Strategy for Higher Investment Returns Michael E. Edleson Foreword by William J. Bernstein John Wiley & Sons, Inc. 14111_Edleson_ffirs_2p.j.qxd 8/31/06 9:21 AM Page iv Copyright © 1993 by Michael E. Edleson. All rights reserved. Foreword copyright © 2007 by John Wiley & Sons, Inc. All rights reserved. Preface copyright © 2007 by Michael E. Edleson. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada Revised edition originally published in 1993 by International Publishing Corporation, Inc. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appro- priate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com.
    [Show full text]
  • VA Investment Software the Value Averaging Investment Strategy
    VA Investment Software The Value Averaging Investment Strategy By: Bruce Ramsey Value Averaging (VA) is a hybrid of Dollar Cost Averaging (DCA), which is more familiar to most investors, and the process of portfolio rebalancing. Proponents of the VA investment strategy feel that this method allows those who use it to experience the proverbial “best of both worlds.” How Value Averaging Works Michael E. Edleson, a former Harvard finance professor, used simulations to compare the Value Averaging method to Dollar Cost Averaging (DCA) and also to the purchases of a constant number of shares in every investment period. While potential differences in risk were not considered, he concluded that Value Averaging provided investors with “an inherent rate of return advantage” in keeping with the time-honored recommendation to “buy low and sell high.” Edleson, who was also a former Nasdaq Chief Economist, feels that a missing ingredient has been added to DCA that makes Value Averaging a superior method - focusing on a portfolio’s anticipated rate of return, which assists in pinpointing periods of under and over-performance in the stock market. Dollar cost averaging is based on the principle that, rather than investing a large sum of money at one time, you should make small investments over a designated time period. For example, if you had $12,000 on January 1st that you planned to invest, you would invest $1,000 on a monthly basis through to December. It is felt that your risk would be reduced, especially in times of high volatility, because you would be purchasing stocks in a range of prices over a 12-month period, rather purchasing all of the shares in a lump sum for the same price.
    [Show full text]
  • Value Averaging Investing the Strategy for Enhancing Investment Returns What Is Value Averaging?
    Value Averaging Investing The Strategy for Enhancing Investment Returns What is Value Averaging? • It is a combination of Dollar Cost Averaging and Portfolio Rebalancing • It is an averaging technique where the portfolio value increases in a defined way irrespective of stock market direction. Value Averaging Fund What is Value Averaging? First developed by former Harvard University professor Dr. Michael Edleson in 1988 Edleson defines the value averaging concept as: "... make the value not the market price of your stock go up by a fixed amount each month." It is a strategy that works regardless of the economic times. Value Averaging Fund VA Advantages A formula based system that forces investors to be disciplined when they invest and removes emotions. It invests more money when markets are low and less when markets are higher (buy low/ sell high). In most cases of back-testing it generates higher returns and lower average cost per share than Dollar Cost Averaging. A monthly growth rate higher than 0.7% but lower than 1% for the stocks is optimal in executing value averaging. Value Averaging Fund VA Advantages VA favors a higher compensation of reward for bearing a higher downside risk. VA generates a higher terminal value for investment accounts than dollar-cost-averaging The probability of achieving the target value for a portfolio is much higher and hence ideal for financial / retirement planning. Performance does not rely on forecasting or timing. Value Averaging Fund VA Challenges In constantly falling markets the investment amount may increase much beyond the investor’s cash flow. Addressed by limiting the maximum investment per trade In rising markets it generates a sell which may result in unwarranted short term taxation and transaction charges.
    [Show full text]
  • Daily Portfolio Investment Return Analysis with Dollar Cost Averaging Method
    Business and Entrepreneurial Review Vol. 9, No.2, April 2010 ISSN 2252-4614 page 151 -1 63 DAILY PORTFOLIO INVESTMENT RETURN ANALYSIS WITH DOLLAR COST AVERAGING METHOD Arie Himawan Student of Graduate Program, Master of Management, D Building, VII Floor Jl. Kyai Tapa No. 1 Grogol, West Jakarta 11440 email: [email protected], Phone: (021) 5664166, Fax.: (021) 5668640 ABSTRACT The background of this research was daily investment return strategy with dollar cost averaging method from portfolios which established from day and date of investment in a month. Therefore, it was found that there was highest return from one of those day when investors make investment plans in capital market. The objectives of this research were analyzing best performance day that investors could make most return in a month and along with dollar cost averaging method to avoid rather on risk of single market timing to regular investing. The design of this research applies exploratory research from day and date of investment portfolios which would add market information to investors as reference when make investments as part of their financial plan. Data analysis of this research used Jakarta Composite Index closing price from 2nd Quarter April 2003 to End of March 2008. The results of this research conclude that investors could make high potential investments portfolio return from one of day and date in a month with implementing dollar cost averaging regularly in capital market. Keywords: Average portfolio return, days of portfolio investment, dollar cost averaging, future value, growth return. 152 Business and Entrepreneurial Review Vol. 9, No. 2, April 2010 INTRODUCTION Investment is part of the individual or a company policy in achieving the objectives of financial plan in the future.
    [Show full text]