Indexing (Benchmarks) industry is observing some rapid changes with ownership of few of the most eminent Index companies changing hands


After Bloomberg Indexes’ acquisition of USB Australia Bond indices this year in April 2014, now its time for Reuters’ to acquire widely used Benchmark- UBS Convertible Indices in July 2014. The UBS Convertible Indices will be re-branded as the Thomson Reuters Convertible Indices.

 

This is very much inline with the news of Global M&A being @ 7 year high with the re-surge in Corporate Deals. Passive products (like Indices) acquisitions is picking-up the trend in investor interest this year rather individual stocks.

Indexing industry is observing some rapid changes with ownership of few of the most eminent Index companies changing hands. Recently The London Stock Exchange Group last week agreed to buy Russell Investments for $2.7 billion in cash from Northwestern Mutual, the US insurer. Barclays PLC is also expected to solicite offers for its index assets worth ~ $400 Mn this year. Nasdaq and S&P Dow Jones Indices are apparently eyeing acquisitions to bolster their index businesses. MSCI & other companies surely wouldn’t want to be the laggards & are expected to explore index acquisitions.

  

UBS draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. Its business strategy is centered on its pre-eminent global wealth management businesses and its leading universal bank in Switzerland. Together with a client-focused Investment Bank and a strong, well-diversified Global Asset Management business, UBS will expand its premier wealth management franchise and drive further growth across the Group.

 

Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. Thomson Reuters is a trusted, global provider of indices and index services, calculating over 10,000 different equity, fixed income and commodity indices. Thomson Reuters provides innovative indices and index-related services to the global financial community to help investors make better decisions.

Advertisements

Analyze Portfolio Performance, Attribution & Risk with Treemap Data Visualization Software


US Government Launches Anti-Fraud Site (StopFraud.gov) (via economics)


Here we get to read about the interesting & much required initiative taken by Obama’s US Government by launching StopFraud.gov
a website to educate individuals & reveal various actions of Financial Fraud Enforcement Task Force.

stopfraud.gov

President Obama’s Financial Fraud Enforcement Task Force has introduced a new Web site to educate Americans about how to protect themselves from fraud and report instances of fraud. The site, StopFraud.gov, will also provide information about the task force’s work. Obama established the interagency task force to wage a coordinated effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of f … Read More

via economics

Corporate fraud incidents on the rise in India, says KPMG


Managing the risk of fraud is essentially no different to managing any other type of business risk !!

Almost 75 per cent of corporate India surveyed felt the overall incidence of fraud was rising, according to ‘India Fraud Survey Report 2010’ by KPMG.

The report also pointed out that e-commerce and computer-related frauds would be major concerns to companies in the coming years. The survey was conducted across 1,000 firms, both Indian business establishments and public institutions, with an annual turnover of Rs 500 crore to over Rs 10,000 crore.

Weak internal control systems, eroding ethical values and a reluctance on the part of the line managers to take decisive action against the perpetrators, are cited as the main reasons for fraud being on the rise.

SOME KEY FINDINGS
* 63% say the desire to exceed market expectations is the main reason to commit financial fraud
* 81% say financial statement fraud is a major issue
* 41% say they do not have a formal fraud risk management framework
* e-commerce & computer-related fraud to be a source of major concern in the coming years
* 75% all fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by employees

Among the types of fraud, the survey noted that 81 per cent viewed financial statement fraud as a major issue. Ineffective whistle-blowing systems, inadequate oversight of senior management activities by the audit committee and weak regulatory oversight mechanisms are the reasons for the growing worries, as well as the increase in the number of frauds.

Respondents, particularly from the financial services and consumer market industries, feel there is a higher level of fraudulent activities within their industry. The survey also indicated “procurement” and “sales and distribution” to be the most vulnerable areas across industries susceptible to fraud risk.

Close to 63 per cent of the surveyed firms said the desire to meet or exceed market expectations was the most significant reason to commit financial statement fraud. “The need of the hour is for organisations to realise the importance of putting effective internal control mechanisms in place, so as to manage risks. Accountability is no longer restricted to a company as a whole, but also streams down to each and every individual. It has become imperative for companies to be vigilant and aware, and not just act when fraudulent situations arise,” said Deepankar Sanwalka, head – forensic, KPMG in India.

India Inc also realises the value of these frauds. The survey indicated that the quantum of frauds increased manifold over KPMG’s 2008 fraud survey. About 87 per cent respondents said their organisation incurred fraud losses of more than Rs 10 lakh as against 47 per cent in the last survey.

Rohit Mahajan, executive director – forensic, KPMG in India, said, “Being a fast paced economy such as ours, fraud management is an extremely vital issue confronting us today. Managing the risk of fraud is essentially no different to managing any other type of business risk. All that it requires is resilience to combat that fraud.”

However, the positive finding of the report was that there is a greater realisation to avoid fraud. Compared to the 2008 fraud survey, in which only 27 per cent of the respondent organisations had adopted proactive data analytics for analysing e-data, this year’s survey indicated that: while over 42 per cent have implemented proactive data analytics in various streams in the organisation, over 22 per cent have partially implemented it.

Courtesy: Business Standard.

SOME KEY FINDINGS
* 63% say the desire to exceed market expectations is the main reason to commit financial fraud
* 81% say financial statement fraud is a major issue
* 41% say they do not have a formal fraud risk management framework
* e-commerce & computer-related fraud to be a source of major concern in the coming years
* 75% all fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by employees

Stock/Equity Fraud Information


Stock fraud occurs when a broker manipulates customers into trading stocks without regard for the customer’s interests. Stock fraud can be orchestrated at the company level, or can be committed by a single employee; stock fraud can also range in size financially from multi-million dollar deals to penny stocks, but stock fraud consistently involves intentional disregard for the financial situation of customers and obsession with personal gain.

Stock fraud is comprised of a few basic categories, with enormous variations on each. Some examples of broker-related stock fraud:

  • Misrepresentation/Omission: this form of stock fraud occurs when the broker intentionally misleads the customer about material facts regarding the stock. Stock fraud involving misrepresentation or omission often disguises risk factors associated with that particular stock.
  • Unsuitability: stock frauds involving unsuitability occur when the broker recommends stocks that are outside the client’s risk tolerance. Stock frauds committed through unsuitable matches allow the broker to push undesirable stocks; this stock fraud frequently results in losses much higher than the client can bear.
  • Overconcentration: failure to diversify a client’s portfolio can be a form of stock fraud. In order to protect a client’s assets, the broker should vary the types of stock purchased, stock fraud through overconcentration strips the client of the protection diversification can afford.
  • Churning: In order to create additional broker’s fees, a form of stock fraud called “churning” is used. Churning requires a large numbers of transactions; often this form of stock fraud consists of selling stocks with small gains in order to show a profit.

More elaborate forms of stock fraud may occur at the executive level, and in some cases, investigators have found that stock fraud is essentially company policy, with many employees taking part in committing or concealing illegal practices. Stock fraud on the larger levels can destroy entire companies by manipulating their stock values, but some stock fraud schemes are actually designed to keep failing businesses funded, using the same tactics. Many stock fraud investigations in recent years have found an enormous amount of insider trading: brokerages committing stock fraud by selling IPO stocks before the release date to favored clients and friends; corporations construct stock fraud schemes designed attract and retain customers and investors.

All forms of stock fraud are designed to violate the investor/broker trust. The key principle of stock fraud is that the investor’s interests are secondary to the financial gain the broker can make. Stock fraud can destroy individuals and business simply by manipulating the stock market. If you suspect that stock fraud caused you to lose investments, you may wish to contact an attorney familiar with stock fraud law. A good attorney can help you determine if you have a potential stock Fraud Claim that would enable you to recover financial losses.

http://www.stockfraudnewswire.com/stock-fraud.html

India’s Most Trusted Brands – 2007: Economic Times Brand Equity Survey


Economic Times has published Brand Equity’s Most Trusted Brands. Colgate for the fourth year in a row topped the list. The first ten positions in the list looks like this

1.Colgate
2.Vicks
3.Lux
4.Nokia
5.Britannia
6.Dettol
7.Lifebuoy
8.Pepsodent
9.Pond’s
10.Tata Tea

The top ten service brands are
1.LIC
2.Airtel
3.State Bank of India
4.Reliance India Mobile
5.BSNL
6.Tata Indicom
7.Indian oil
8.ICICI Bank
9.Bank of India
10.Reliance Petroleum

Colgate has every qualification to be in the number one league because of its ability to understand Indian consumer and innovate interms of the product and marketing mix. The brands that feature in teh list is a testimony of successful marketing.

Cheers

Most Trusted Brands: India 2007

%d bloggers like this: