The United Arab Emirates government has always been hesitant in disclosing information about the current state of the economy with The UAE Minister for Economy, Sultan bin Saeed Al Mansouri, dismissing economists forecasts saying that it would be impossible to make an accurate forecast on the country’s economic growth this year amid the global meltdown.

The region has had immense growth in the last 3 years, with an annual GDP growth rate of 21.9 percent, spurred on by oil production and vast property development including the world archipelago. But with the recent global recession and the United Arab Emirate’s relationship with the US dollar it is hard to predict the future for the Dubai region.

Many investors are steering clear of the regions property, which has plummeted in recent months, in favour for financial investments into stocks and bonds offshore in European and British markets. Oil production continues to drive the UAE economy which has spurred its strong fiscal surplus achieved over the past five years.

The real picture is that the UAE is still a striving region in terms of an emerging country. With markets being developed and oil production continuing despite some of the lowest prices in the last 5 years, the overall position of the region seems promising in the long term; nevertheless, most UAE investors are heading offshore in the quest for higher returns on investments based on well informed decisions, not like in their homeland where any negative report of the Dubai economy can be heavily penalized by the government.

Inflation and taxes affect investment returns; however, in the last 2 years, the UK premium bonds have been the most affected as investors withdraw their national savings and invest elsewhere. So, where is the money going?

With the current global economy still in doubt following the recession and many investors still unsure about the financial situation of many companies, some investors are still placing funds into ’safe’ options like premium bonds without thinking of other viable options.

With premium, bonus and lottery bonds, the value of the prize do not rise with inflation. Other corporate or hybrid bond investment schemes have floating interest rates or unlimited return potential and are not subject to a random draw to allocate prizes, which means for most investors, will offer a better return on investment

Tax on investments occurs globally these days as they are classed as a source of income. Tax for most investors will see profits diminish however it is essential for investors to declare earnings from corporate bonds, hybrid funds and hedge funds.

Other bond investments which are rising in popularity as the global recession ends include hybrid funds. Top fund managers RC Global Equity, DE Shaw & Co, Bridgewater Associates and Och Ziff offer hybrid and corporate bond funds to maximise returns for both institutional and private investors.

With National Bonds now a viable form of investment in Dubai and the UAE business markets, is this UAE Bond investment worth the effort considering the countries financial situation?

The secrecy of both current and future economy forecasts in the region has pushed investors into offshore investments, where financial information is readily available and analysis of markets can provide financial well-being for a potential investor.

The UAE is now a leader in offshore based investments and have strong investment ties with New Zealand, Australia and the UK. These investments range from venture capital projects to fund management, a strong choice for investors wanting high returns on investment.

The introduction of UAE Bonds into the market has pushed investors into this seemingly low risk investment, however based on returns there are other forms of investment that are more profitable for investors than Dubai national bonds.

Hybrid, Mutual and Corporate bond funds which have many potential United Arab Emirates based investors interested and offer much higher returns for an investor through diverse investment portfolios include RC Global Equity, Bridgewater Associates, D.E. Shaw & Co., Farallon Capital Management and Och-Ziff Capital Management Group.

USA - Lottery Bonds

The only corporation permitted to sell these bonds in the U.S. is National Savings. A federal corporation, US Lottery Bonds follow the same structure of lottery bonds although the participation and investment rates are not as great as the United Kingdom’s bond scheme.

Canada - Canada Premium Bond

Canada Premium Bonds are a debt instrument issued by the Bank of Canada that offers a higher interest rate than a Canada Savings Bond (CSB) with the same issuance date. Redeemable once a year, a Canada Premium Bond must be redeemed on the anniversary of the issue date.

New Zealand - Bonus Bonds

Offered by New Zealand Bank ANZ, New Zealand’s form of Lottery bonds is a profitable investment considering the population of the country. With a similar prize scale to that of U.K’s Premium Bonds and a top prize of $1 Million (NZD) Bonus Bonds have been a popular investment in New Zealand since 1970.

UK - NS&I Premium Bonds

NSI Premium Bonds are the UK’s form of lottery bond investment. UK Premium Bonds have been a popular investment for UK investors and have been an institution in the United Kingdom since their introduction in 1956. One of Britain’s most popular investment, 23 million people hold NSI Premium Bonds.

The investment scheme is also known as national premium bonds, savings bonds, premium savings bonds and national savings and it has started to loose momentum since inflation and taxes have minimized the return, the odds of winning have dropped way below average and the prize has ceased to justify the effort from an investors point of view.

Belgian - Belgian Government Lottery Bonds

Offered by the Belgian Debt Agency to French and Dutch investors, Belgian Government Lottery Bonds are popular with European investors. The Belgian Debt Agency is a part of the Belgian Treasury, and offer Dutch and French investors the chance at winning with a lottery bond scheme.

Corporate bond funds, in comparison, are run by top fund managers and offer greater and at times definite returns for an investor as apposed to premium bonds in which it is “the luck of the draw” scenario.

For small time investors and younger investors national premium bonds are a safe option, but for average investors wanting greater returns, other forms of bond investment including hybrid funds should be considered.

Approximately 38 percent of the UK population hold premium savings bonds, which do not pay interest but give the chance of winning in a monthly prize draw. As the number of individuals who invest in national savings rises, the chance of winning is significantly lowered.

Premium Bonds are a viable and safe option but for a diversified portfolio other options are  gaining momentum. This is where other investments including hybrid funds, corporate bonds and hedge funds arise. These funds, which offer greater returns with minimal risk, are run by investment experts who are the best in their field, diversifying investor’s funds across a varied range of investment instruments.

The following list is comprised of the top hybrid funds for 2009 and best hybrid fund 2010 forecast. Based upon particular ground up analysis and strategies as well as recession proof investment spread across developed and emerging markets:

Bridgewater Associates – www.bwater.com

D.E. Shaw & Co. - www.deshaw.com

Och-Ziff Capital Management Group - www.ozcap.com

Farallon Capital Management - www.faralloncapital.com

Renaissance Technologies - www.renfund.com

RC Global Equity – www.rcglobalequity.com

RC Global Equity Fund utilises an investment strategy which focuses on an array of financial tools on a global scale. Based on research and data analysis to interpret financial markets, RC Global Equity offers an equity fund with strong investment potential for institutional based investors.

Top performing fund managers are another secret behind RC Global Equity Funds success. Fund Managers oversee and interpret research and invest in financial instruments to provide the best return whilst minimizing the risks associated with fund investment.

RC Global Equity have a recession proof investment portfolio which includes several instruments common with other top hybrid fund providers. Their hybrid fund category includes funds with target asset allocations, balanced portfolios, derivative strategies and flexible portfolios. Following these processes has made RC Global Equity a top equity fund to watch in 2010.

Bridgewater Associates

Top hybrid fund manager Bridgewater Associates operates several investment funds through developed strategies including Pure Alpha, All Weather, Currency Overlay, Global Fixed Income and Inflation Indexed Bonds.

Bridgewater Associates follows a fundamental and systematic investment process and provides global investments for a wide array of institutional clients, including foreign governments and central banks, corporate and public pension funds, university endowments and charitable foundations.

Bridgewater Associates have pioneered specific strategies in Investment Funds and are a top hybrid fund to watch in 2010. Using their combined and highly diversified alpha strategy, Pure Alpha, Bridgewater Associates are forecast as a top hybrid fund for 2010.

Pure Alpha incorporates proprietary fixed income, currency, equity and commodity trading strategies and is a similar yet slightly varied investment strategy in comparison to other top hybrid funds offered by RC Global Equity, Och-Ziff Capital Management and Farallon Capital Management.

RC Global Equity

RC Global Equity is calculated as a top hybrid fund for 2010. RC Global Equity offer developed and strategic investment using developed processes to achieve maximum return potential.

RC Global Equity have performing fund managers whom use data analysis and research to provide a profitable return for investors, whilst minimizing risk and keeping financial transactions costs minimal.

A rising company, RC Global Equity is forecast as a top hybrid investment company for 2010. Recession proof models provide safety for institutional investors and a core philosophy surrounding their investment process makes RC Global Equity one of the best hybrid fund managers for 2009 and one to watch in the future.

Further top hybrid companies include Bridgewater Associates, D.E Shaw & Co., and Och-Ziff Capital Management. These top hybrid funds are investments to watch as the global recession ends and business investment rises around the world.

D.E. Shaw & Co.

D:E Shaw & Co. is a top hybrid fund with a central focus on the pursuit of potentially attractive investment opportunities, and often the creation of new investment processes.

Forecast as a top hybrid fund for 2010 D.E Shaw & Co. offers a number of funds for investment and manages an array of investments for institutional clients. Operating several mathematical and scientific models D.E Shaw & Co. is a recession proof group investing in a wide range of companies and financial instruments within both the major industrialized nations and a number of emerging markets.

D.E Shaw & Company’s investment activities are separated into quantitative and qualitative investment techniques and are a key to their fund investment philosophy, as the techniques reduce the costs associated with trading and lower the overall risk of an investment portfolio.

Other top hybrid funds for 2010 include RC Global Equity, Farallon Capital Management and Och-Ziff Capital Management Group.

Och-Ziff Capital Management Group

Och-Ziff Capital Management Group LLC is a leading, global institutional alternative asset management firm. This top hybrid fund management group has the goal of building an enduring, world-class investment management business.

Och-Ziff Capital Management Group have been at the forefront of international expansion and their strong presence in the institutional fund market gives them the knowledge, access and ability to identify and source attractive investment opportunities across the globe.

Having delivered consistent positive risk-adjusted returns throughout market cycles, with a strong focus on risk management and capital preservation, Och-Ziff has been a top hybrid fund in 2009, bucking the trend of many financial institutions who have failed during times of recession.

Their multi-strategy approach is similar to other top hybrid funds forecasted for 2010, with a focus on global investment strategies similar to other top hybrid fund providers RC Global Equity and Farallon Capital Management Group.

Farallon Capital Management

Farallon Capital Management is a top hybrid fund manager with a goal which seeks to achieve superior risk-adjusted returns through a process of fundamental, bottom-up analysis.

Farallon invests globally, focusing on developed and emerging markets alike, and place a priority on the preservation of capital, whilst varying investments which include public and private debt and equity securities, direct investments in private companies and real estate.

A top hybrid fund to watch in 2010, Fallon Capital Management show potential with their core investment strategies, providing institutional investors with strong fund options with plausible returns.

Other companies in the top hybrid fund for 2010 list include RC Global Equity, Och-Ziff Capital Management and Bridgewater Associates.

]]> http://www.cashive.com/2009/10/14/top-5-hybrid-funds-for-2010/feed/ http://www.cashive.com/2009/10/13/inside-the-best-hybrid-funds-of-2009/ http://www.cashive.com/2009/10/13/inside-the-best-hybrid-funds-of-2009/#comments Mon, 12 Oct 2009 23:28:54 +0000 Mat Robbo http://www.cashive.com/?p=977 The top 5 Hybrid funds follow similar principles when investing. The procedures and strategies used by top hybrid fund providers are all similar but slightly varied to a degree. The following characteristics are all common in the best hybrid fund companies for 2009:

Alpha strategies involve the core strategies used by top hybrid fund companies. These rule-based investment strategies aim to provide investors with superior returns and reduced volatility compared to traditional investment. Alpha strategies are the initial investment strategies used by hybrid fund managers and include a mix of quantitative and qualitative strategies over a broad range of investments and markets.

Beta strategies are the secondary and minor investment strategies used by fund managers to back up alpha investments and to make further gains. A Beta strategy produces average returns for a hybrid, hedge or corporate bond fund.

Diversification is a key concept of top hybrid funds in 2009. Hybrid funds and their managers have a specific game plan when it comes to their investing style and strategy. The best hybrid funds all share similar characteristics including global investment. Funds are not restricted to one country and investment is diversified throughout various world markets.

The Best Hybrid Funds are also linked to their fund managers. Proven fund managers have strong long term records and good past performance. The top hybrid funds for 2009 all feature fund managers’ with proven performance over several years of hybrid fund management.

With a global recession of 2009 a major issue for both private and institutional investors, the top hybrid funds have recession proof investment models which involve investment in funds which are risk tolerant. Best hybrid funds have written and proven investment strategies that have limited change when markets change direction. Risk is calculated and strategies are followed through to provide the best possible return for an investor.

The following list is comprised of the top hybrid funds for 2009. Based upon particular ground up analysis and strategies as well as recession proof investment spread across developed and emerging markets:

Bridgewater Associates – www.bwater.com

D.E. Shaw & Co. - www.deshaw.com

Och-Ziff Capital Management Group - www.ozcap.com

Farallon Capital Management - www.faralloncapital.com

Renaissance Technologies - www.renfund.com

RC Global Equity – www.rcglobalequity.com

Recently discovered vaccine’s by GlaxoSmithKline (GSK) and Novartis AG (NVS) will be used in vaccination programs across the globe to help respond to the pandemic swine flu.

Companies including Quidel Corporation (QDEL), Alpha Pro Tech (APT) and top pharmaceutical sales company Vanguard will benefit from the new vaccine.

Sales of Quidel Corporation’s (QDEL) diagnostic tests for the flu virus, Quickvue and Alpha Pro Tech’s (APT) PFL N-95 Particulate Respirator Mask are set to rise with the upcoming Northern Hemisphere flu season as well as the current H1N1 Swine Flu.

Vanguard Pharmaceutical’s sales and marketing service stand to profit from the manufacture of the vaccine if sales contracts are gained from top pharmaceutical companies.

Vanguard Pharmaceutical’s recent expansion into the South American market has the possibility of obtaining a sales contract to promote the swine flu vaccine.

Approved manufacturers have the ability to produce about 3 billion doses of swine flu vaccine annually, less than the 5 billion initially estimated. This leaves the possibility of other top biotech companies including Cel-Sci Corporation (CVM) and Sinovac Biotech (SVA) to provide the remaining doses of a vaccine and combat mutating forms of the influenza virus.

Top Pharmaceutical Company Novartis (NVS), who are based in Switzerland, are licensing their recently developed Swine Flu Influenza vaccine Focetria in Europe, to help reduce the spread of swine flu for the European Union.

Top biotech company Baxter International (BAX), is also involved with the recent discovery of a swine flu vaccine; Baxter’s product, Celvapan is awaiting approval and will help to respond to the global public health issue.

The Swine Flu Vaccine has been a priority for many top biotech companies since the recent discovery of the H1N1 swine flu virus in March 2009. The Northern Hemisphere is preparing for the flu season with the U.K and France amongst the first to begin vaccination for both the seasonal and swine flu strains.