Question

(a) What is Fund Management?

(b) What is Fund Management in Mauritius?

(c) What is Company Analysis in Mauritius for example SICOM Ltd and explain the types of fund it offer, the objectives of the fund, performances of the fund and fees charged

(d) What is Global Fund Management Industry.

(e) What is the trend in the Global Industry with regards to Fund Management

(f) Are investors really interested in investing in fund? What are factors impacting the sector including statistics.

(g) What types of fund are gaining momentum in the world.

(h) What is company analysis by taking example of an International Investment Company

Answer 1

(a) What is Fund Management?

Solution: Funds management is the overseeing and handling of a financial institution's cash flow. The fund manager ensures that the maturity schedules of the deposits coincide with the demand for loans. To do this, the manager looks at both the liabilities and the assets that influence the bank's ability to issue credit.

(b) What is Fund Management in Mauritius?

Answer: Fund Management in Mauritius is a preferred jurisdiction for most types of fund structures including Listed Funds, Hedged Funds, Property Funds and Private Equity Funds. Funds registered with the FSC in Mauritius are incorporated under the Companies Act 2001and are licensed under the Financial Services Act 2007 and the Securities Act 2005 as amended (the ‘Securities Act’). Such Funds should also need to hold a Category 1Global Business License (‘GBC1’) besides a CIS license.

(c) What is Company Analysis in Mauritius for example SICOM Ltd and explain the types of fund it offer, the objectives of the fund, performances of the fund and fees charged?

Answer: The company analysis in mauritius is the total deposits of the Company stood at Rs 1.8 billion for the year ended 30 June 2019, as compared to Rs 2.1 billion last year in line with the strategy of the company to improve its interest margin by not mobilizing costly deposits.The amount of lease disbursed stood at Rs 263.7 million for the financial year ended 30 June 2019 while for last year the amount of lease disbursed stood at Rs 179.2 million. This improved performance can be attributed to the different sales and marketing initiatives undertaken during the year which had a positive impact on business growth.Revenue from leasing activities increased to reach Rs 40.3 million for the year under review as compared to Rs 39.6 million last year. Investment income decreased to Rs 105.6 million from Rs 125.1 million last year due the persisting low interest rate environment. Revenue from our Unit Trust activities increased healthily to Rs 4.0 million this year as compared to Rs 2.5 million last year. Net revenue reached Rs 73.2 million for the financial year ended 30 June 2019 as compared to Rs 63.2 million last year, on the back of better performances from the Company’s leasing and deposit taking businesses.Operating profit The operating profit reached Rs 33.8 million as compared to Rs 23.5 million last year. This is mainly due to an improved interest margin and lower provisioning charges.The fall in profit generated from the Unit Trust business is mainly due to an update in the methodology of cost allocation between the business units.Interest paid to depositors fell from Rs 101.3 million for the financial year ended 30 June 2018 to Rs 78.8 million for the financial year ended 30 June 2019 in line with the Company’s strategy not to mobilise costly deposits.Cost Control Non-interest expenses fell slightly from Rs 39.7 million for financial year ended 30 June 2018 to Rs 39.4 million for financial year ended 30 June 2019. The increase in non- interest expenses for the Unit Trust business is due to the review in the methodology used for cost allocation between the business units.The productivity ratio stood at 53.87 % for the year under review as compared to 62.80% last year. This improvement in the productivity ratio is due to the increase in revenue and fall in non- interest expense.The net interest margin of the Company improved to 2.93% as compared to 2.23% last year as a result of an enhanced asset/liability management. Return on equity The return on equity for the financial year ended 30 June 2019 stood at 7.25% as compared to 5.05 % in 2018. This increase in return on equity is explained by the rise in the profitability of SFSL for the financial year under review.The return on average assets increased from 0.84% last year to 1.35% for the financial year ended 30 June 2019.

(d) What is Global Fund Management Industry?

Answer: A global fund management is a fund that invests in companies located anywhere in the world including the investor's own country. A global fund management seeks to identify the best investments from a global universe of securities. Global funds may also be passively managed.

(e) What is the trend in the Global Industry with regards to Fund Management?

Answer: The following are the trend in the global industry with regards to fund managment below:

1) Competition for China heats up

2) PE continues strong run

3) Sustainability measurement gets more sophisticated

4) Managers start looking for value in their technology

5) The regulatory scope widens

6) The definition of infrastructure investment broadens

7) Real Estate investors get serious about data

8) Institutional investors start to tell their story

9) ETF players become more active

10) Wealth managers embrace new models

(f) Are investors really interested in investing in fund? What are factors impacting the sector including statistics?

Answer: Are investors really interested in investing in fund: Some mutual funds pay interest, though it depends on the types of assets held in the funds' portfolios. More specifically, bond funds, money market funds, and balanced funds pay interest because of the coupon-bearing debt securities in which those types of funds invest.

KEY TAKEAWAYS

• Mutual funds, like stocks, are not required to pay interest.
• The type of mutual funds that typically do invest in fixed-income securities.
• Although not all funds pay interest, some of the ones that do invest primarily in vehicles that will pay interest to them, which they then disseminate to their investors.
• Interest paid by mutual funds can be called a distribution and if it is paid out is usually paid out quarterly or yearly.

What are factors impacting the sector including statistics:

• Draw a personal finance map. First of all you must sit down and think very carefully about your financial situation.
• Investment objective.
• Investment diversification.
• Portfolio readjustment periodically.
• Time before you need the money.

(g) What types of fund are gaining momentum in the world?

Answer: A momentum fund is an investment fund that invests in companies based on current trends in such things as earnings or price movement. Managers of these funds invest in companies with positive momentum and may also short stocks of companies with negative momentum.

There are 3 types of funds gaining momentum in the world:

* Money market funds

* Bond Funds

* Stock Funds

When investors are deciding which to utilize, they should consider investment strategies needed for each and their level of risk tolerance.

(h) What is company analysis by taking example of an International Investment Company?

Answer: International Investment analysison company is a broad term for many different methods of evaluating investments, industry sectors, and economic trends. It can include charting past returns to predict future performance, selecting the type of investment that best suits an investor's needs, or evaluating individual securities such as stocks and bonds to determine their risks, yield potential, or price movements.