Sunday, May 3, 2020
Equity Research Analyst Covering Cannabis -Myassignmenthelp.Com
Question: Discuss About The Equity Research Analyst Covering Cannabis? Answer: Introducation The first article that has been chosen to fit the purpose of this assignment is Fidelity Launches Fidelity Investment Grade Total Bond Fund. Fidelity is a top Canadian investment firm and this particular bond aims to provide steady income flow and the potential for capital appreciation in the context of the Canadian investors. With the changing market of fixed income, the fund flexibility would enable the investors to be active in targeting various sources of return. This income strategy offers the following: Flexibility in investment providing exposure to the wider opportunity set inherent in the fixed income market of USA Tactical management like sector rotation, asset allocation and positioning of yield curve (Moore et al., 2018) Mitigation of downside risk and identification of opportunities for delivering competitive overall returns The diversification of portfolio, in which the fund could be included in the current core allocation in the form of a complement to conventional fixed income for client portfolios. It has been identified from the article that Fidelity is involved in managing $136 billion in institutional assets and mutual funds. This takes into account $37.5 billion in assets for institutional clients. These comprise of corporate and public defined benefit pension, endowments, sub-advised programs, foundations, endowments and the other corporate assets on the clients behalf (Andonov, Eichholtz Kok, 2015). Thus, the Canadian investors are provided with an overall range of global, domestic and income-oriented mutual funds along with asset allocation and the high program of net worth. Review and discussion of article 2: The second article that has been selected for meeting the purpose of this assignment is Canada's small financial firms get buzz from weed stocks. This article is related to the financial markets prevailing in the Canadian market. The investors have placed bets that the smaller financial companies of Canada would experience an increase in revenues after they helped in funding the marijuana firms ahead of the planned legalisation of the drug of the nation in the year. The Canadian weed firms have offered equities, which are nearly $1 billion in 2017 and two-thirds are generated in the final quarter of 2017 (Business.financialpost.com, 2018). From the article, it has been identified that the capital markets of BMO have risen, which have helped in raising the revenue of Canoby Growth Corporation to $161.3 million. This denotes that the reputed brokers might take some market share from the smaller brokers. However, the smaller brokers have taken early lead in banking relationships and funding research with the marijuana companies after larger rivals have entered the industry. Moreover, the investors could benefit the small brokers, since the former trade in pot stocks in the secondary market as well as the increase in value of the warrants hold (Busch, Bauer Orlitzky, 2016). However, there is no clarity about the participation of the biggest Canadian banks in the market. Hence, it could be inferred that the smaller Canadian brokers would be benefitted immensely in the financial market. References: Andonov, A., Eichholtz, P., Kok, N. (2015). Intermediated investment management in private markets: Evidence from pension fund investments in real estate.Journal of Financial Markets,22, 73-103. Busch, T., Bauer, R., Orlitzky, M. (2016). Sustainable development and financial markets: Old paths and new avenues.Business Society,55(3), 303-329. Business.financialpost.com. (2018).Financial Post. Retrieved 29 January 2018, from https://business.financialpost.com/investing/canadas-small-financial-firms-get-buzz-from-weed-stocks Moore, J., Strickland, R., Moore, J., Moore, J., Plage, M. (2018).Fidelity Launches Fidelity Investment Grade Total Bond Fund.Newswire.ca. Retrieved 29 January 2018, from https://www.newswire.ca/news-releases/fidelity-launches-fidelity-investment-grade-total-bond-fund-671088653.html
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