Analysis Of Dewey Cheatum Howe ( Dch ) - 1918 Words

Investment Objective The objective of Dewey Cheatum Howe (DCH)’s emerging markets fund is to generate attractive excess return over investing in US stocks with comparable volatility by investing in a globally diversified portfolio of emerging and developed market instruments. An emerging market fund is required for DCH for the following reasons †¢ Emerging markets are growing faster than advanced economies due to increased human capital, better economic framework, and financial markets. Emerging markets companies are directly competing with developed-market firms and reshaping industries in the areas of technology, automobiles, business processing and consulting, and alternative energy. These developments will undoubtedly contribute to shifts in the global investment landscape over many years. †¢ Looking ahead a few years, it is expected that the emerging markets economies will change the dynamics of the world economy, and of trade patterns and global finance, in profound ways. To attain above mentioned advantages at DCH we have follow a very thorough process that is outlined below. Investment Approach – Design of an investment product We follow a top down and bottom up analysis to identify attractive companies in the global market. Below flow chart summarizes our investment theme. Once an idea is originated we perform a top-down investment analysis by considering all risk factors associated with investing in emerging markets and bottom-up analysis is done by