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	<title>Spotlight on Investments and Markets</title>
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	<link>http://evd101.wordpress.com</link>
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		<title>Spotlight on Investments and Markets</title>
		<link>http://evd101.wordpress.com</link>
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		<item>
		<title>Sovereign Wealth Funds; A Potential Force from Within For Emerging Nations</title>
		<link>http://evd101.wordpress.com/2009/05/23/sovereign-wealth-funds/</link>
		<comments>http://evd101.wordpress.com/2009/05/23/sovereign-wealth-funds/#comments</comments>
		<pubDate>Sat, 23 May 2009 22:00:11 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Emerging Markets]]></category>
		<category><![CDATA[Financial Markets]]></category>
		<category><![CDATA[Sovereign Wealth Funds]]></category>
		<category><![CDATA[Trinidad and Tobago]]></category>
		<category><![CDATA[Caribbean Procurement Institute]]></category>
		<category><![CDATA[Lodewijk Meijer]]></category>
		<category><![CDATA[Transparency International]]></category>
		<category><![CDATA[ESG]]></category>
		<category><![CDATA[Keith Rowley]]></category>
		<category><![CDATA[Margaret Rose]]></category>
		<category><![CDATA[Heritage Fund]]></category>
		<category><![CDATA[Kuwait Investment Authority]]></category>
		<category><![CDATA[Libyan Investment Authority]]></category>
		<category><![CDATA[SAMA]]></category>
		<category><![CDATA[National Welfare Fund]]></category>
		<category><![CDATA[China Investment Corporation]]></category>
		<category><![CDATA[UDECOTT]]></category>
		<category><![CDATA[Uff Commission]]></category>
		<category><![CDATA[corporate governance]]></category>
		<category><![CDATA[Investment Corporation of Dubai]]></category>
		<category><![CDATA[SWF Institute]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=391</guid>
		<description><![CDATA[Sovereign Wealth Funds can be a great source of development potential for their host countries. This is especially true for Emerging Markets. When properly positioned within a nation's financial infrastructure, positive SWF development will not just be beneficial to the host country, but to the global economy too. Quite often the size of these institutions is simply too large to concentrate on local investments alone.

When talking about development in Emerging economies corruption and nepotism might be a factor hindering economic growth. However, the availability of a wealth fund will often trigger so much attention from professional larger financial services providers that either directly or indirectly incentives are given to help fight the negative influence of the nepotists.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=391&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	
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			<media:title type="html">evd101</media:title>
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		<title>The Value of Virtue</title>
		<link>http://evd101.wordpress.com/2009/04/10/the-value-of-virtue/</link>
		<comments>http://evd101.wordpress.com/2009/04/10/the-value-of-virtue/#comments</comments>
		<pubDate>Fri, 10 Apr 2009 12:12:04 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Behavioral Finance]]></category>
		<category><![CDATA[Emerging Markets]]></category>
		<category><![CDATA[Financial Markets]]></category>
		<category><![CDATA[Risk Management]]></category>
		<category><![CDATA[Agency Theory]]></category>
		<category><![CDATA[Caribbean Procurement Institute]]></category>
		<category><![CDATA[CARICOM]]></category>
		<category><![CDATA[Corruption]]></category>
		<category><![CDATA[Cost-Benefit Analysis]]></category>
		<category><![CDATA[ESG]]></category>
		<category><![CDATA[Fraud]]></category>
		<category><![CDATA[Legal System]]></category>
		<category><![CDATA[Lodewijk Meijer]]></category>
		<category><![CDATA[PriceWaterhouseCoopers]]></category>
		<category><![CDATA[Regulatory Framework]]></category>
		<category><![CDATA[Transparency International]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=329</guid>
		<description><![CDATA[In The Value of Virtue we show that lower corruption levels lead to higher firm valuation, even after the incorporation of a set of control variables. An extensive study by Charles Lee and David Ng, of Cornell University, covering 44 nations and almost 60,000 valid firm observations shows clearly that valuation levels improve when corruption levels go down. Contrary to public belief the main mechanism to translate lower corruption into higher value goes via increases in expected future cash flows and profitability and not via the required rate of return. The only drawback of the study is that it was country corruption indices that were used at the firm level. In line with the ESG trends in investing it would have been ideal to work with firm level ratings. With respect to the latter initiatives in especially emerging markets should be stimulated. The markets are ready for ESG based Emerging Markets studies.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=329&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	
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			<media:title type="html">evd101</media:title>
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		<title>Smaller Frontier Markets: Hidden Opportunity or Totally Uninteresting? The Trinidad Case</title>
		<link>http://evd101.wordpress.com/2009/04/02/smaller-frontier-markets-hidden-opportunity-or-totally-uninteresting-the-trinidad-case/</link>
		<comments>http://evd101.wordpress.com/2009/04/02/smaller-frontier-markets-hidden-opportunity-or-totally-uninteresting-the-trinidad-case/#comments</comments>
		<pubDate>Thu, 02 Apr 2009 17:55:58 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Asset Allocation]]></category>
		<category><![CDATA[Emerging Markets]]></category>
		<category><![CDATA[Portfolio Optimization]]></category>
		<category><![CDATA[Risk Management]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Beta]]></category>
		<category><![CDATA[BRIC]]></category>
		<category><![CDATA[CARICOM]]></category>
		<category><![CDATA[Country Analysis]]></category>
		<category><![CDATA[Credit Crisis]]></category>
		<category><![CDATA[Frontier Markets]]></category>
		<category><![CDATA[Liquidity Risk]]></category>
		<category><![CDATA[Regulatory Framework]]></category>
		<category><![CDATA[Thin Trading]]></category>
		<category><![CDATA[Trinidad and Tobago]]></category>
		<category><![CDATA[Volatility]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=259</guid>
		<description><![CDATA[During the period 2005(5)-2009(3) global stock markets went through extremely good years, followed by the catastrophes of the credit crisis. Unlike what we generaly teach, Emerging Markets didn't really do much worse than the Western nations. Frontier Markets are still catching a cold when the rest of the world sneezes though. Notwithstanding this fact they do have their own peculiarities and remain interesting markets.

Thin trading is often a problem though and so is the 'neglect' by the international investor community. In this entry we analyze a smaller frontier market, Trinidad and Tobago, and analyze what this ambitious country that wants a leading role within the Caribbean could do to make that work.

For entrepreneurial investors that want an almost private equity like component in their portfolio (because of the existing illiquidity), Trinidad and Tobago is definitely a market to follow. For the bigger investors it remains too small unless the government does something about attracting more listings to the Tier 1 stock market. Especially in the areas Oil and Gas and probably also Telecom quite a bit of work remains to be done. Ongoing regional efforts within CARICOM are of importance as well for the bigger investors.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=259&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>1</slash:comments>
	
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		<title>2009; The Year to add More Convertibles to your Portfolio?</title>
		<link>http://evd101.wordpress.com/2009/03/27/2009-the-year-to-add-more-convertibles-to-your-portfolio/</link>
		<comments>http://evd101.wordpress.com/2009/03/27/2009-the-year-to-add-more-convertibles-to-your-portfolio/#comments</comments>
		<pubDate>Fri, 27 Mar 2009 21:24:27 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Financial Markets]]></category>
		<category><![CDATA[Manager Selection]]></category>
		<category><![CDATA[Portfolio Optimization]]></category>
		<category><![CDATA[Risk Management]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Asset Allocation]]></category>
		<category><![CDATA[Calamos]]></category>
		<category><![CDATA[Convertible Arbitrage]]></category>
		<category><![CDATA[Convertibles]]></category>
		<category><![CDATA[Debt Valuation]]></category>
		<category><![CDATA[Ed Rothschild]]></category>
		<category><![CDATA[Goldman Sachs]]></category>
		<category><![CDATA[Hedge Funds]]></category>
		<category><![CDATA[Hybrid Securities]]></category>
		<category><![CDATA[Market Outlook]]></category>
		<category><![CDATA[Option Pricing]]></category>
		<category><![CDATA[Volatility]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=240</guid>
		<description><![CDATA[Convertibles are hybrid securities. The valuation factors seem simple and easy-to-understand on an individual basis. However, overall valuation of convertibles is difficult. During 2008 convertibles had a tough year and it seemed as if the debt cushion didn't really function. Delevering by hedge fund managers was an important factor in explaining the calamities. We do believe that 2009 will be totally different and recommend investors to take a closer look. We also provide you with two best-of-breed convertible managers to look at.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=240&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://evd101.wordpress.com/2009/03/27/2009-the-year-to-add-more-convertibles-to-your-portfolio/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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		<title>How International is the Internet?</title>
		<link>http://evd101.wordpress.com/2009/03/26/how-international-is-the-internet/</link>
		<comments>http://evd101.wordpress.com/2009/03/26/how-international-is-the-internet/#comments</comments>
		<pubDate>Wed, 25 Mar 2009 23:02:21 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[A word from the author]]></category>
		<category><![CDATA[Global/Domestic. USA]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Netherlands]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=229</guid>
		<description><![CDATA[Just a small story between last day's bigger blog entry and tomorrow's. The internet is not at all international when digging a bit deeper. The world is globalizing but in many casis are like a tough client/doctor.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=229&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	
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			<media:title type="html">evd101</media:title>
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		<title>Professional Money Managers Admit: Risk Management Can and Should Improve</title>
		<link>http://evd101.wordpress.com/2009/03/23/professional-money-managers-admit-risk-management-can-and-should-improve/</link>
		<comments>http://evd101.wordpress.com/2009/03/23/professional-money-managers-admit-risk-management-can-and-should-improve/#comments</comments>
		<pubDate>Mon, 23 Mar 2009 20:44:12 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Manager Selection]]></category>
		<category><![CDATA[Portfolio Optimization]]></category>
		<category><![CDATA[Risk Management]]></category>
		<category><![CDATA[Absolute Risk]]></category>
		<category><![CDATA[Credit Crisis]]></category>
		<category><![CDATA[EDHEC]]></category>
		<category><![CDATA[Goltz]]></category>
		<category><![CDATA[Kritzman]]></category>
		<category><![CDATA[Markowitz-van Dijk]]></category>
		<category><![CDATA[Normal Distribution]]></category>
		<category><![CDATA[Relative Risk]]></category>
		<category><![CDATA[Value-at-Risk]]></category>
		<category><![CDATA[Volatility]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=192</guid>
		<description><![CDATA[In this entry we discuss the results of an interesting survey by French research center EDHEC Risk. During the period 2008/09 they analyzed risk management and portfolio optimization techniques in professional money management firms. The result was shocking since the level of sophistication was clearly lacking. Available academic research was not used at all or only in a simplistic, naive way.

The mistakes made during the credit crisis as far as risk management is concerned are definitely related to this shaky status quo in professional risk management. A lot has to be done but it is at least good that the main actors are perfectly aware of this.

Although the survey did mainly deal with European professional money managers, the situation in the US is not that much better that we could conclude that there are no problems on the other side of the Atlantic.

Our Markowitz-van Dijk optmization technique is one of the good opportunities of improvement available to asset management firms.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=192&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<title>Twitter</title>
		<link>http://evd101.wordpress.com/2009/03/21/twitter/</link>
		<comments>http://evd101.wordpress.com/2009/03/21/twitter/#comments</comments>
		<pubDate>Sat, 21 Mar 2009 15:07:39 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[A word from the author]]></category>
		<category><![CDATA[Twitter]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[Hungary]]></category>
		<category><![CDATA[Iran]]></category>
		<category><![CDATA[Protectionism]]></category>
		<category><![CDATA[Renault]]></category>
		<category><![CDATA[US]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=187</guid>
		<description><![CDATA[The blog author added Twitter to his repertoire. And was lucky enough to do so on a weekend day. Wine and sun in combination with a prime minister stepping down in Hungary. From meteorological spring in the Netherlands to spring in the US-Iran relations. This weekend a much smaller stap than one might think.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=187&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<title>The World is Changing: Also in Asset Management</title>
		<link>http://evd101.wordpress.com/2009/03/20/the-world-is-changing-also-in-asset-management/</link>
		<comments>http://evd101.wordpress.com/2009/03/20/the-world-is-changing-also-in-asset-management/#comments</comments>
		<pubDate>Fri, 20 Mar 2009 19:28:44 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Emerging Markets]]></category>
		<category><![CDATA[Financial Markets]]></category>
		<category><![CDATA[Manager Selection]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Market weights (GDP)]]></category>
		<category><![CDATA[Market weights (market value)]]></category>
		<category><![CDATA[UK]]></category>
		<category><![CDATA[US]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=168</guid>
		<description><![CDATA[The financial world is changing. This does not only transform economic power balances. It has also lead to substantial changes in the asset management world. It is not so obvious anymore that good asset managers are by definition US-based. In this contribution we describe the relationship between the changes in the economic world and those in asset management.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=168&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<title>Investments 101; What we can learn from Chess Grandmasters</title>
		<link>http://evd101.wordpress.com/2009/03/17/investments-101-what-we-can-learn-from-chess-grandmasters/</link>
		<comments>http://evd101.wordpress.com/2009/03/17/investments-101-what-we-can-learn-from-chess-grandmasters/#comments</comments>
		<pubDate>Tue, 17 Mar 2009 21:35:59 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[Behavioral Finance]]></category>
		<category><![CDATA[Manager Selection]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Chess]]></category>
		<category><![CDATA[Credit Crisis]]></category>
		<category><![CDATA[Performance Measurement]]></category>
		<category><![CDATA[Rating Systems]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=146</guid>
		<description><![CDATA[In this entry we will use a metaphor of the chess world and its rating system to show that there is still a long way to go before we will be able to distinguish between good and bad investors or fund managers. The fact that money is at stake is making things more complicated.
Even the experience in the credit crisis can - to some extent - be analyzed using the chess metaphor. High bonus and fee levels can be used as a negative proxy. Top level managers are often the ones with low fixed fees and high performance bonus. Average or lousy managers follow the opposite strategy.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=146&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<title>Word from the author (belonging to the entry below about Fund Manager Selection by Institutional Investors)</title>
		<link>http://evd101.wordpress.com/2009/03/15/word-from-the-author/</link>
		<comments>http://evd101.wordpress.com/2009/03/15/word-from-the-author/#comments</comments>
		<pubDate>Sun, 15 Mar 2009 16:09:13 +0000</pubDate>
		<dc:creator>evd101</dc:creator>
				<category><![CDATA[A word from the author]]></category>
		<category><![CDATA[Author]]></category>
		<category><![CDATA[Credit Crisis]]></category>
		<category><![CDATA[Erik L. van Dijk]]></category>
		<category><![CDATA[Institutional Investors]]></category>
		<category><![CDATA[Sovereign Wealth Funds]]></category>

		<guid isPermaLink="false">http://evd101.wordpress.com/?p=130</guid>
		<description><![CDATA[A few words, reflections before you start reading our next, big entry on Institutional Investors and their investment style. With relfections that might help explain the credit crisis added as well.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=evd101.wordpress.com&amp;blog=6814241&amp;post=130&amp;subd=evd101&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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