Friday, February 22, 2019
Asset Classes Paper Essay
The mutual entrepot chosen is Merrill kill Global and the Dow 30 organization chosen is McDonalds. The summation naval divisiones for both the mutual blood line and Dow 30 organization will be determined. The fol starting timeing will explain how classifications and the accepted investment environment impact organizational decisions concerning the composition of these portfolios._Merrill lynch Global_Merrill Lynch (2006).Merrill Lynch is a company that helps individual clients achieve financial success. With a professional advisor, customers tooshie receive a customized strategy with the customers goals in mind. It makes available to its clients a wide range of investment products and services. When selecting the neckcloth that best suits the clients need, some key factors to consider include a funds investment strategy, risk profile, investment consummation, and relationship to the over tout ensemble asset allocation strategy and investment age horizon._ row A Sh atomic nu mber 18s_. Typically, the most preferent tier of classified shopworn, offering more choose rights than social class B shares. Class A shares are designed to insulate perplexity from the short swings of Wall Street, by allowing those in management to control a grim sum total of the equity of the company but still maintain voting power. These types of shares are not sold to the public and cannot be traded, which supporters say allows management to focus on long-term goals.Class A shares annual operational expenses typically include an annual asset-based distribution and service fee of up to .35% (Mutual Funds. 2006). This annual fee is used to compensate the funds electrical distributor and firms like Merrill Lynch for shareholder servicingand distribution-related services. Class A shares are largely more economical for investors who seek to invest larger amounts and contain a long-term term time horizon._Class B Shares_. Class B shares typically do not charge a front-end gross gross charge, so all of the assets are immediately invested in a fund. Class B shares usually chaffer a contingent deferred sales charge (CDSC) which may be charged to shareholders who redeem Class B shares within a certain number of years. This charge declines over time and is eventually limited. Class B shares are more economical for investors who strike an intermediate to longer term time horizon and have slight than $100,000 to invest in a fund familys equity monetary resource or less than $50,000 to invest in a fund familys fixed income capital (Mutual Funds. 2006)._Class C Shares_. Class C shares usually do not impose a front end sales charge at the time of purchase. All of the clients assets are immediately invested in the fund. It is coarse for Class C shares to impose a CDSC up to 1.00% of the redemption amount during the first year or longer (Mutual Funds 2006). Unlike Class B shares which convert to Class A shares after a item of time, C shares generally do not have a renewal feature. Compared to Class A and Class B shares, Class C shares generally become less economical for investors who plan to invest over a longer term.Merrill Lynchs compensation differs by share class. The fund share class specific compensation is the basis upon which Merrill Lynch fiscal Advisors are paid. Some funds may set higher sales charges and asset based fees for a particular class than do otherwise funds for the same class. Merrill Lynch policy sets a limit as to the maximum sales charges or asset based fees included in the Financial Advisors compensation formula based on the share class and size of investment to minimize potential conflicts of interest based on differential compensations (Mutual Funds. 2006).Merrill Lynch is a diversified financial services company. It can be expected to pursue additional business opportunities with the firms whose mutual funds Merrill Lynch makes available to its customers._McDonalds (MCD)_The Dow 30 organization chos en for this typography is McDonalds. McDonalds was founded in 1948 and is based in Oak Brook, Illinois. McDonalds hatful operates as a solid foodservice retailer worldwide. It operates and franchises McDonalds restaurants, which offer various food items, and soft drinks and other beverages. As of July 14, 2006, it operated approximately 31,000 restaurants in 100 countries (Yahoo Finance).McDonalds change in cash and cash equivalents is a difference of $2,718,200. In 2003, the cash and cash equivalents were at $162,400 and in 2005 the cash and cash equivalents were at 2,880600. The total cash flows from financing activities was (1,736,800) in 2003 and 361,600 in 2005. The cash flows grew advantageously throughout the three years (Yahoo Finance).McDonalds Income Statement shows a revenue of 21.23B, and canly revenue growth of 9.40%, a gross profit of 6.32B, a diluted EPS of 2.22 and quarterly earnings growth to be at 57.30%. The brace sheets total cash in 2005 is set at 3.29B. Th e net income for 2003 was $1,471,400 then greatly increase in 2004 to 2,278,500 then increasing a little more to $2,602,200 in 2005 Yahoo Finance (2006).The stock price history for McDonalds shows Beta, a measure of securitys or portfolios volatility or systematic risk, in proportion to the market as a whole, to be at .92. In my learning for this past couple of weeks, I have learned that many utilities stocks have a beta of less than 1. McDonalds 52 week low on September 21, 2005 was set at $31.31 while its 52 week high on February 8, 2006 was set at 36.75 Yahoo Finance (2006).Overall, McDonalds has been growing since 1948 at a great pace. McDonalds second quarter operating results was fueled by strong sales and margin performance worldwide. McDonalds EPS compared to competitors is much higher at 2.218 with Burger King at .235 and Wendys at 1.056 (Yahoo Finance. 2006). McDonalds has done an excellent job with their employees, stocks, investments, and all aspects of the fast food organization.REFERENCESMutual Funds Investing at Merrill Lynch (2006). Retrieved on August 12, 2006 from http//askmerrill.ml.com/publish/marketingcenters/products/MF_DisclosureDocument_0406.pdf .Merrill Lynch (2006). Achieve Life on Your Terms. Retrieved on August 13, 2006, from http//askmerrill.ml.com/fa_front/1,2280,,00.html?pg=cnp.Yahoo Finance (2006). Retrieved August 13, 2006, from http//finance.yahoo.com/q/ pr?s=mcd.