International financial market INDIVIDUAL 5 Essay

International financial market INDIVIDUAL 5 - Essay Example Using the above percentages on $100 Million portfolio we find that: The investment seeks current income with a secondary focus on capital appreciation. The fund invests in equity securities, bonds and money markets instruments. The target asset allocation of approximately 5% cash, 40% equities and 55% fixed income is enhanced. The actual asset class allocation can deviate from time to time from these targets as markets conditions warrants. The implementation of asset may involve the extensive use of equity and fixed-income exchange-traded funds. The investment policy based on moderate conservative allocation can be summarized in the table format below: Type of investment Percentage asset allocation Value Fixed-income 55 55 Cash and equivalents 5 5 Stocks 40 40 Total %100 $100 The multinational corporation can raise money for long term investment through primary capital markets. The decision can be made either to invest through bonds or shares. To avoid increasing its debt, expertise help is required. Shares offer the potential for higher returns and capital gains if the company is successfully progressing. (Davis, 1995). On the other hand if the corporation is doing poorly then bonds are safer as they are not susceptible to fall in price and in the event of bankruptcy bond owners are paid before shareholders. Raising finance from primary markets involves the process of face-to-face meetings. In the event that shares or bonds are chosen, the corporation will