Disclaimer

Information contained in this website is for informational purposes only and does not constitute a recommendation, offer, general solicitation or confirmation of terms. Investments and investment strategies discussed on this website may not be suitable for you. You should weigh any investment decision carefully after considering your specific investment objectives and financial circumstances. Information contained in this website is based upon generally available information believed to be reliable, but no representation is made as to the accuracy, timeliness or completeness of such information or that any returns indicated will be achieved. Changes to assumptions may have a material impact on returns. Price/availability is subject to change without notice. Past performance is not indicative of future results. The information contained in this website is not intended for distribution or use in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.



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Knowledge Center

Knowledge Center
Welcome to Devenir Capital Ltd. Knowledge center.

Broad classifications of Trusts

A trust can be created during a person's lifetime and survive the person's death. A trust can also be created by a will and formed after death. Once assets are put into the trust they belong to the trust itself, not the trustee, and remain subject to the rules and instructions of the trust contract. Atrust is a right in property, which is held in a fiduciary relationship by one party for the benefit of another. The trustee is the one who holds title to the trust property, and the beneficiary is the person who receives the benefits of the trust. The Different types of Trusts can be broadly classified as below:

  • Revocable Trusts
  • Irrevocable Trusts
  • Asset Protection Trust
  • Charitable Trust
  • Special Needs Trust
  • Spendthrift Trust
  • Tax By-Pass Trust
  • Totten Trust

Who is an External Asset Manager?

An external asset manager (EAM) is a wealth manager who works outside of a bank. It can be a stand-alone company which is independent of banks. This term is often used synonymously with the term “independent asset manager” although not all external asset managers are completely independent in the stricter sense of the word. Services offered are numerous and vary between service providers, depending on their level of specialization. Tax consultation, cash management, trading, estate planning and inheritance management are among the services offered by EAMs.Some external wealth managers focus on specific areas or investments. Examples of which are: Real estate, commodities, dividends, derivatives or structured products, fixed-term deposits, specific categories of stocks, private equity,VCs and hedge funds.

What is integrated wealth planning?

A financial plan that speak about all facets of life of an individual that changes the focus from savings for your money to planning for you. Traditional planning often falls short of expectations because ideal financial planning outcomes never considers the various scenarios defined, leaving the client feeling disappointed when they are unable to achieve their desired lifestyle. We approach the task with four step process.

  • Identify the goals.
  • Strategize to reach the goals.
  • Execute your strategy.
  • Regular reviews, to adjust and keep on track.

Model Portfolios

Model portfolio provide an efficient method for clients to participate in multiple trading strategies without requiring to open multiple accounts. Client investments are allocated among instruments in the Model based on the Model's allocation ratios as defined by the advisor in consultation with the client.

Advisors and their clients can view Model Statements and review it regularly and readjust the underlying based on the goals.

Portfolio Rebalancing

Rebalance Portfolio helps to redistribute the current position weighting in your portfolio. Specify a new "Target Percentage" for your positions which would automatically create orders that, when submitted, will attempt to execute trades to keep your portfolio in line with your investment strategy.

What are CFDs?

A contract for difference (CFD) is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies and treasuries.

Forex Margin Cash Positions

Margin for Cash Forex positions is calculated as follows:

  • For each currency with a negative cash balance, offset with positive non-cash asset value in the same currency.
  • For each currency with remaining positive non-cash asset value, use it to offset remaining negative cash balance in other currencies. Offset the currency with the highest margin rate first.
  • Use total net liquidation value to offset remaining negative cash balances. Offset the currency with the highest margin rate first.
  • If there are negative cash balances left, they are paired up with positive cash balances to calculate margin.

Alternative Investments

Alternative investment is an investment in asset classes other than stocks, bonds, and cash. The term covers different asset classes that includes tangible assets such as precious metals, art, wine, antiques, coins, or stamps and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, carbon credits, venture capital, film production, financial derivatives, and cryptocurrencies. Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. An alternative asset is any non-traditional asset with potential economic value that would not be found in a standard investment portfolio.

Structured Products

A structured product, is a market-linked investment, which is pre-packaged investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies, and to a lesser extent, derivatives. Structured products were created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. Structured products can be used as an alternative to a direct investment, as part of the asset allocation process to reduce risk exposure of a portfolio, or to utilize the current market trend.

ETFs

An ETF is a type of fund. It owns assets (bonds, stocks, gold bars, etc.) and divides ownership of itself into shares that are held by shareholders. The details of the structure (such as a corporation or trust) will vary by country, and even within one country there may be multiple possible structures. The shareholders indirectly own the assets of the fund, and they will get an annual report. Shareholders are entitled to a share of the profits, such as interest or dividends, and they may get a residual value in case the fund is liquidated. Their ownership interest in the fund can easily be bought and sold.

ETFs are similar in many ways to traditional mutual funds, except that shares in an ETFs can be bought and sold throughout the day like stocks on a stock exchange through a broker-dealer. Unlike traditional mutual funds, ETFs do not sell or redeem their individual shares at net asset value (NAVs). Instead, financial institutions purchase and redeem ETFs shares directly from the ETFs, but only in large blocks (such as 50,000 shares), called creation units

REITS

REITs allow individual investors to buy shares in commercial real estate portfolios that receive income from a variety of properties, including apartment complexes, data centers, healthcare facilities, hotels, infrastructure (e.g., fiber cables, cell towers and energy pipelines), office buildings, retail centers, self-storage, timberland and warehouses.
Most REITs specialize in a specific real estate sector – for example, office REITs and healthcare REITs – but diversified and specialty REITs may hold various types of properties in their portfolios. For example, a diversified REIT may hold a portfolio comprising both office and retail properties. Most REITs have a straightforward business model: The REIT leases space and collects rents on the properties, then distributes that income as dividends to shareholders.

Hedge Funds

A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques. It is administered by a professional investment management firm, and often structured as a limited partnership, limited liability company, or similar vehicle. Hedge funds are generally distinct from mutual funds, as their use of leverage is not capped by regulators, and distinct from private equity funds, as the majority of hedge funds invest in relatively liquid assets.

Managed Accounts

A managed account is a fee-based investment management product for high-net-worth individuals. The main appeal for wealthy individuals is the access to professional money managers, a high degree of customization and greater tax efficiencies in a fee-based product. Managed accounts started as separately managed accounts (SMAs) and have since evolved into multiple strategy accounts (MSAs) and the rapidly emerging unified managed accounts (UMAs). There is broad agreement that managed accounts provide the added benefits of greater transparency, liquidity and control.

Merchant Banking

Any person, indulged in issue management business by making arrangements with respect to trade and subscription of securities by playing the role of manager is known as a merchant banker. The activities carried out by merchant bankers are:

  • Private placement of securities.
  • Managing public issue of securities.
  • Satellite dealership of government securities.
  • Management of international offerings like Depository Receipts, bonds, etc.
  • Syndication of rupee term loans.
  • Stock broking.
  • International financial advisory services.

SME Rating

The definition of SMEs may vary per jurisdiction but in line with the European Union definition, an SME may also include self-employed individuals, including artisans, sole traders and entrepreneurs, as well as small, medium sized enterprises and micro business. All these types of entities are considered as SMEs for rating analysis.

Technical Indicators

Technical indicators are mathematical calculations based on the price, volume, or open interest of a security or contract.

There are two basic types of technical indicators:

Overlays - Technical indicators that use the same scale as prices are plotted over the top of the prices on a stock chart. Examples include moving averages and Bollinger Bands.

Oscillators - Technical indicators that oscillate between a local minimum and maximum are plotted above or below a price chart. Examples include the MACD or RSI.

Forex Indicators

The below two indicators has performed well among all the technical indicators.

Ichimoku Kinko Hyo indicator:

The all-in-one technical indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span.

Tenkan-sen: The tenkan-sen is calculated by adding the highest high and the highest low over the past nine periods and then dividing the result by two. The resulting line represents a key support and resistance level, as well as a signal line for reversals.

Kijun-sen: The kijun-sen is calculated by adding the highest high and the lowest low over the past 26 periods and dividing the result by two. The resulting line represents a key support and resistance level, a confirmation of a trend change, and can be used as a trailing stop-loss point.

Senkou Span A: The senkou span A is calculated by adding the tenkan-sen and the kijun-sen, dividing the result by two, and then plotting the result 26 periods ahead. The resulting line forms one edge of the kumo - or cloud - that's used to identify future areas of support and resistance.

Senkou Span B: The senkou span B is calculated by adding the highest high and the lowest low over the past 52 periods, dividing it by two, and then plotting the result 26 periods ahead. The resulting line forms the other edge of the kumo that's used to identify future areas of support and resistance.

Chickou Span: The chickou span is the current period's closing price plotted 26 days back on the chart. This line is used to show possible areas of support and resistance.

MACD(Moving Average Convergence Divergence):

The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD line which can function as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses above its signal line and sell, or short, the security when the MACD crosses below the signal line.

Five most popular financial metrics used by value investors

  • Price-to-Earnings Ratio
  • Price-to-Book Ratio
  • Debt-to-Equity
  • Free Cash Flow
  • PEG Ratio