WOMEN & INVESTMENT Sabah Almoayyed

Index Challenges Facing Private Sector Portfolio Management Value Diversification How to conduct your Business and Investment Asset Allocation What is Investment? What are Funds Investor Profile Quiz Factor Definitions Why Invest? Selection of Investment Banks Which of the Following reasons do you need Conclusion to save and invest your money? Collaboration Vs. Competition Why Women make better Investors? Consolidation Women’s Right to Invest Business Investment Building Blocks Ways to Improve Business Ways to Improve Business Hedging Mechanism Portfolio Investment Types of Investment Keys Steps to Follow

Women & Investment Challenges Facing Private Sector How to be better conduct your Business and Investment

A. Challenges Facing Private Sector COMPETITION - Domestic GLOBALIZATION - Open Market REGULATIONS - Internal & External MANAGEMENT OF CHANGE - Customer Employee Shareholder

B. How to conduct your Business and Investment What is Investment? Types of Investment Types of Investors Why Invest?

What is Investment? Investment differs from savings in that savings are funds or cash put aside for ones daily requirements and use. Investments are funds to be utilized for long term wealth accumulation and future use.

Why Invest? To Build Capital To Educate Your Children To Retire Comfortably To Protect the Future Purchasing Power of Your Assets

Which of the Following reasons do you need to save and invest your money? Buy a Home Buy a Car Fund a Child’s Education Start a Business Have a comfortable Retirement Provide for the long-term care of dependent or elderly parent BECOME RICH

Why Women make Better Investors? Women’s Right to Invest Cautious Conservative Think Ahead Family oriented

A. Business Investment Building Blocks Market Study Feasibility Analysis Financial Analysis Amount of Investment Reward Measurement

Ways to Improve Business B. Business Investment Ways to Improve Business Debt to Equity Ratio Balance Sheet Management – Inventory, Debt Hedging Mechanism Management Information System Growth Analysis

Ways to Improve Business Hedging Mechanism Date: 14th Feb 2001 Delivery Date: 14th May 2002 Spot Price: 1$ = 110 Yen Pay Yen IMPORTER BAHRAIN EXPORTER JAPAN Car Delivery Forward Hedging Car Cost Date Price ______ No Hedging Hedging Hedging Transaction 14th Feb 1$=110 Yen (spot) If importer receives car value 14th Feb, Then he will pay $20,000=Yen 2,200,000 14th May 1$=100 Yen Yen 2,200,000=$22,000 Yen 2,200,000=$20,000 Buy Yen outright value 14th May at 14th Feb prevailing price 14th May 1$=120 Yen Yen 2,200,000=$18,333

Hedging Mechanism IMPORTER BAHRAIN EXPORTER JAPAN Date: 14th Feb 2001 Delivery Date: 14th May 2002 Spot Price: 1$ = 110 Yen Pay Yen IMPORTER BAHRAIN EXPORTER JAPAN Car Delivery Foreign Currency Options: Buys Yen 110/ - call option with expiry date 14th May which gives him the right not the obligation to buy Yen at predetermined price. Date Price 14th May 1$=110 Yen (spot) - Exercise his right to be long the Yen at 110,making 10% profit and save his company 10% on the price of the car. 14th May 1$=120 Yen - Does not exercise his option and can benefit from the favorable exchange rate. Hence, Importer buys Insurance Policy in the form of Options to ensure company is not exposed to currency fluctuation

Cash & Cash Equivalent Fixed Income Real Estate Equity Derivatives Portfolio Investment Types of Investment Cash & Cash Equivalent Fixed Income Real Estate Equity Derivatives

Portfolio Investment Key Steps to Follow Create a written Financial Plan Research, Research, Research Select appropriate Investments Diversify your Assets Determine your Investment Time Horizon Develop a Strategy Learn the Language Know the Laws

Value of Diversification Portfolio Management Value of Diversification Hypothetical situation: Investors A and B have US$500,000/- Investor A Scenario: Invest all US$ 500,000 in Super Savings Account offering 6% p.a for 10 years Investor B Scenario: Bets and loses US$ 20,000 on the horses Wisely invests balance (US$ 480,000) in diversified investment portfolio for 10 years: US$ 153,600 (32%) in stocks at 12% pa US$ 153,600 (32%) in stocks at 8% pa US$ 76,800 (16%) in cash at 4% pa US$ 96,000 (20%) in alternative investment at 18% pa

Value of Diversification Portfolio Management Value of Diversification

Process of Portfolio Management (Determine Customer’s Investment Profile) Objective Age Return Requirement Male/female Risk Tolerance Income Number of Dependents Constrains Time Horizon Liquidity Needs Tax Constraints Legal requirements Unique Needs and Preferences Other Factors

Conservative Balanced (Growth & Income) Growth Aggressive Growth Portfolio Management Asset Allocation Conservative Balanced (Growth & Income) Growth Aggressive Growth

Portfolio Management What are Funds? A Mutual Fund is a company that invest on behalf of individuals and institutions with similar financial goals. Pooling is the key to Mutual Fund Investing.

Equities Investment Factor Definitions Market Capitalization Price/Earning (PE) Ratio Price Sales Ratio Relatives Strength Dividends Yield Cash Flows

Selection of Investment Banks Portfolio Management Selection of Investment Banks Catering to all types of Investors No exit fee Wide Range of Complementary Asset Classes Freedom of Shift & Exchange One Stop Banking Excellent Track Record

Role of Business Women in Change Management Conclusion Role of Business Women in Change Management ‘Out of the Box’ Collaboration Vs. Competition Consolidation of Business Strategic Alliances Merger Public Floatation Lead the Market

Collaboration vs. Competition Market Analysis Information Sharing Financial Management

Consolidation Pooling of Resources Similar Businesses Diversified Businesses Formation of Shareholding Continuity Trading Property Development Portfolio Management Women Bank To attract Capital Become a Leading force

WOMEN & INVESTMENT Thank you