The investment philosophy of Seven Investment Management Company is to provide the clients and other financial intermediaries with an investment advise which is more innovative and practical along with the management and platform facilities. Since the company in itself is solely an investment company, the objects of the organization thus solely depicts the investment philosophy which the firm follows. These goals ad aims mainly pertain to the company’s willingness to promote integrity and honesty within the company with the eventual result of having promoted a culture which helps the organization maintain this honesty and integrity with customers. The company seeks to be innovative in the funds it offers and promotes sensible and common sense when making investment decisions to the clients. The company also promotes the philosophy of providing an exceptional service and personalized attention to its clients. The fee charged by the organization helps the company achieve transparency. The company demonstrates independence in their services and products and lastly the company wants to be seen in the investment with the clients as a valuable partner (7IM, 2013).
The company also impresses upon the use of the same approach to investment by the private investors as that used by the institutional investors for the sole benefit of the clients themselves. Lastly the company’s investment philosophy also includes the sustainable growth of the company’s profits or a steady financial performance of the organization. This it aims to achieve by giving their own investment money to an investment manager who would produce a steady performance of the company without any extra effort required to be put (7IM, 2013).
Inhaltsverzeichnis (Table of Contents)
- Investment Philosophy & Investment
- 7IM
- DIMENSIONAL
- Strategies to Maximize Returns and Minimize Risk and Tax
- 7IM
- DIMENSIONAL
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This preview analyzes the investment philosophies and strategies of two firms, 7IM and Dimensional, focusing on their approaches to maximizing returns and minimizing risk and tax.- Investment Philosophies of 7IM and Dimensional
- Strategies for Maximizing Returns
- Strategies for Minimizing Risk and Tax
- Comparison of 7IM and Dimensional Strategies
- Impact of Investment Philosophies and Strategies on Investors
Zusammenfassung der Kapitel (Chapter Summaries)
Investment Philosophy & Investment
- 7IM: This section examines the investment philosophy of Seven Investment Management Company, emphasizing their focus on innovation, integrity, client-centricity, and sustainable growth. 7IM's philosophy involves utilizing the same investment approach for private and institutional investors, aiming to achieve a steady financial performance for the organization and its clients.
- DIMENSIONAL: The chapter explores the investment philosophy of Dimensional, an investment firm that seeks to provide funds to clients for various purposes. Dimensional's philosophy centers on the dynamics and complexities of the financial market, aiming to achieve market equilibrium and offer investors speculative opportunities based on anticipated market shifts. This philosophy also emphasizes the concept of reward-risk balance, where investors are compensated for taking risks through diversified investments in various market sectors like bonds and equities. The importance of diversification is highlighted as a key strategy to mitigate avoidable risks associated with concentrated investments or relying on market predictions.
Strategies to Maximize Returns and Minimize Risk and Tax
- 7IM: This section explores the strategies employed by 7IM for maximizing returns and minimizing risks. Beyond diversification, 7IM utilizes asset allocation, security selection, market timing, and AAP Lifestyle strategies. The asset allocation strategy focuses on achieving an effective mix of assets to meet investor needs, while security selection involves engaging investors in discussions about the advantages and disadvantages of different securities to determine the most appropriate investments aligned with their risk tolerance and goals. The market timing strategy involves making investments at pre-determined times and factoring in potential interest rate fluctuations. Lastly, the AAP Lifestyle strategy addresses the specific needs of individuals approaching or already in retirement, shifting funds from higher to lower risk levels as they progress towards retirement.
- DIMENSIONAL: This section examines Dimensional's strategies for maximizing returns and minimizing risk. Similar to 7IM, diversification serves as a core strategy for Dimensional, benefiting both general and fixed interest investors. The firm further utilizes asset allocation strategies, specifically the core equity strategy, which aims to achieve return premiums across multiple equity market asset classes using a total market approach. The asset class strategy acts as a complement to the core portfolio, with specific strategies like the value strategy and large company strategy designed to enhance returns and outperform market benchmarks. Additionally, Dimensional implements a tax management strategy to minimize tax rates and optimize profitability.
Schlüsselwörter (Keywords)
The preview explores key investment themes like diversification, asset allocation, risk management, return maximization, and tax optimization. The key players examined are 7IM and Dimensional, highlighting their respective investment philosophies and strategies, such as asset allocation, security selection, market timing, AAP Lifestyle, core equity, and value strategies. The preview analyzes how these firms leverage various approaches to achieve financial success for their clients within the dynamic and complex landscape of financial markets.- Citar trabajo
- Richards Macdonald (Autor), 2012, Funds Management: 7IM vs. Dimensional, Múnich, GRIN Verlag, https://www.grin.com/document/214079
