Shaw Capital Management: South Koreas Economy

South Koreas output is continuing to accelerate, and the government

needs to exit from its accommodative economic policies earlier than anticipated. The HSBC Koreas purchasing managers index (PMI) rose from 55.6 in January to 58.2 in February the highest since December 2007. New orders are coming in, and there are rising backlogs of unfulfilled orders.

Shaw Capital Management: South Koreas Economy - Employment too is rising suggesting that the current pace of growth will be sustained for the next several months. Inflation paced a little with consumer prices up 3.1% in January from a year earlier. But inflation in Korea is likely to remain stable for some months.

The central bank is expected to tighten its monetary policy by starting to raise interest rates from the current record low of 2% in the later part of the second quarter as the government retains its focus on job creation and growth.

Shaw Capital Management: South Koreas Economy - Exports expanded 31% year on year, better than Reuters forecast of 22.7%. South Korea posted a much larger-than-expected

trade surplus of $2.33 billion in February as ship deliveries boosted exports, while imports fell as holidays reduced crude oil and natural gas demand.

The government expects a monthly trade surplus of more than $1 billion from March as demand improves. The current-account surplus is most likely to dwindle to around $17 billion this year from $42.7 billion in 2009 as imports rise. A new Bank of Korea governor, widely expected to be a more pro-government figure, will not rush to raise rates after taking office

in April.

Exports grew 31% from a year earlier to $33.27 billion, faster than the expected rise of 21%, while imports climbed 36.9% to $30.94 billion, exceeding a forecast of an expansion of 34.0%.

South Korea, which is heading the G20 group of leading economies wants to leave an imprint of its presidency.

Shaw Capital Management: South Koreas Economy - It is trying to introduce a system of international currency swaps which it hopes will reduce global imbalances by lessening the need for countries to accumulate reserves, seen as one of the causes of last years financial and

economic crisis.

Shaw Capital Management - Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor. Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).

Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.

A true open architecture firm is completely independent of the rest of the financial services industry and accepts compensation only from its clients.

In addition, open architecture firms must make the financial commitment to hire only the most experienced advisors, and those advisors must apply their experience to the issues that will most affect their clients' wealth.

Matters like asset allocation and manager search are simply too important to be left in the hands of young analysts.

We are proud of our role in leading the open architecture revolution, and look forward to introducing you to its benefits.

Shaw Capital Management Newsletter: Japan Submits Budget for 2010

The Democratic Party of Japan (DPJ) government submitted to the Diet the fiscal 2010 budget amounting to ¥92.3 trillion

Online PR News – 30-June-2010 –The Democratic Party of Japan (DPJ) government submitted to the Diet the fiscal 2010 budget amounting to ¥92.3 trillion, its first budget since its inauguration in mid-September. The budget was even larger than its counterpart for the current fiscal year — which was already a record if one includes the second supplementary stimulus package, approved last December. This was because of additional spending on child allowances, free senior high school education, cash subsidies to farmers, and higher payments to
medical institutions to alleviate the shortage of medical doctors. Particularly noteworthy is the large amount devoted to social security, up to ¥27.3 trillion, which account for 51% of general public spending … the first time that the social security share has exceeded 50%. In marked contrast, public works investment, which has been cut back by almost 20%, amounts to ¥5.8 trillion, a record drop that symbolizes the DPJ’s philosophy of shifting money to people from public works... eightynine dam projects are likely to be frozen. At a news conference, Prime Minister Yukio Hatoyama described it as “a
budget meant to safeguard the life of the people.” He also claimed that three reforms were incorporated in the architecture of the budget: first, the principle of a shift of priority “from concrete to people”; second,
initiatives taken by politicians instead of bureaucrats; and third, securing transparency in the budget formulation process. Some creditable aspects notwithstanding, the budget bill appears to be overshadowed, as media reports made clear, by concern over a severe revenue shortage and its implications for the future of Japan’s public finances, which are already debt-laden to a perilous extent as recently pointed out by credit rating agency Standard & Poor’s which raised the prospect of a downgrade in Japan’s sovereign debt rating.

“The budget bill appears to be overshadowed by concern over a severe revenue shortage and its implications for the future of Japan’spublic finances, which are already debt-laden to a perilous extent.”

“Japan’s economic policy flexibility has diminished as a result of increased fiscal deficits and government debt, persistent deflation and a prospect of continued sluggish economic growth”, analysts at the firm said in a note. “It’s impossible to keep tolerating this massive spending,” said Takeshi Minami , chief economist at Norinchukin Research Institute in Tokyo. “Japan’s fiscal health will continue to be exceedingly severe given revenue won’t grow and a stagnant recovery may require additional economic
measures.” A major reason for the squeeze is a plunge in prospective tax revenues due to the economic downturn and the drop in corporate profits. Tax revenues for fiscal 2010 are estimated to fall to ¥37.4 trillion, the same level as 26 years ago, in the mid-1980s — while corporate tax revenues are expected
to be half the amount in normal years. As a result, the government has to raise ¥44.3 billion in new government bonds, compared to ¥53.5 trillion in FY2009. This leaves the treasury dependent on debt for 48% of the total budget, up 10 percentage points. At the end of the fiscal year, on March 31, 2011, the
outstanding balance of government bond issues will have shot up to ¥637 trillion, the equivalent of 134% of Japan’s GDP while public debt will probably spiral to ¥973 trillion, almost double GDP.

“At the end of the fiscal year, on March 31, 2011, the outstanding balance of government bond issues will have shot up to ¥637 trillion, the equivalent of 134% of Japan’s GDP while public debt will probably spiral to ¥973 trillion, almost double GDP.”

According to the new government, the economic policies adopted by the previous ruling party, the Liberal Democratic Party (LDP), failed on two fronts: initially boosting demand by increasing public investment, which was effective in the short term but not sustainable until the end of the 1990s. And later enhancing the supply side of the economy by deregulating the labour market and privatizing public entities, which simply widened the income gap within the economy, in the 2000s. However, the new budget was not well received by most observers. The announcement was rather sudden and lacked a comprehensive path to
achieve the stated goals, they claim. Also, no reliable, specific incentives were offered, such as tax changes or deregulation that affect private sector behaviour.

More importantly, given its enormous debt, the government has limited room to offer any incentives without jeopardizing other parts of the economy. However, there was no mention of these painful trade-offs. In addition, while the budget contains some signs of change, there is concern that it may not adequately stimulate the economy. Most private sector economists believe that spending measures in the fiscal 2010 budget (and in the second fiscal 2009 supplementary budget) are expected to provide a limited boost to Japan’s GDP and to kick in no sooner than April
.
“Most private sector economists believe that spending measures in the fiscal 2010 budget are expected to provide a limited boost to Japan’s GDP and to kick in no sooner than April.”

Overall, the budget appears to be the result of a compromise between an attempt to impose some fiscal discipline and the promises made in last year’s summer election of new direct supports to households, such as child allowance, as well as concern over a double-dip recession. “Harsh financial conditions have prevented the administration from keeping all the promises that the DPJ made during its campaign last summer (for instance it has eliminated highway tolls and the gasoline tax). But the administration has succeeded, to some extent, in realizing the party’s slogan of “shifting weight to people from concrete” and its aim of providing more funds for households, rather than for industry-linked organizations and large-scale public works projects”, asserted in its editorial the Japan Times, one of the main national newspapers.

“Almost every move the government makes over the coming months must be seen against the backdrop of the crucial upper house election, which must be held in July for half of the seats.”

The budget must now be approved by Japan’s parliament before taking effect. Hatoyama’s popularity has dropped to 48% this month from 71% after he took the office in September. Almost every move the government makes over the coming months must be seen against the backdrop of the crucial upper house election, which must be held in July for half of the seats. So in the end the budget and its goals may be more dream than reality.

Shaw Capital Management February Newsletter: Government bond Markets 3 of 3

Shaw Capital Management Korea February Newsletter:  Article three of three - The markets are assuming that the more powerful members of the eurozone will support the weaker members in order to prevent defaults that might threaten the single currency structure; but the yield spreads have widened considerably to reflect the increased risks. Our tentative view is that the markets will “muddle through”, and that defaults will be avoided; but higher overall yield levels seem unavoidable. Prospects in these markets are therefore very unattractive. The gilt edged market has also come under pressure over the past month; short-term yields have remained basically unchanged, but there have been increases in medium and longer-term yields that has produced a much steeper yield curve.



Shaw Capital Management Korea February Newsletter:  Article three of three - There has been evidence of a modest improvement in the economic background; and the Bank of England is proving to be a stabilising influence at a difficult time; but a very disappointing Pre-Budget Report has indicated that there will be no attempt to address the problems of the huge fiscal deficit until after the election. Our tentative view is that the markets will “muddle through”, and that defaults will be avoided; but higher overall yield levels seem unavoidable. Prospects in these markets are therefore very unattractive. Funding pressures will therefore continued to increase; and so, although there does not appear to be any real danger that the UK might join the list of countries that could default on their sovereign debts, annual debt issues in excess of £200 billion cannot continue for long if this is to be avoided. It is no surprise therefore that investors have reacted by reducing their exposure to the market.



Shaw Capital Management Korea February Newsletter:  Article three of three - There is still some doubt whether the UK economy has moved out of recession. The pace of contraction in the third quarter of the year has been slightly reduced, and since then the pace of job losses has declined, and consumer spending has held up fairly well. But business investment and manufacturing activity remains weak, and so there may have been no overall improvement in the final quarter of last year. The Bank of England has therefore kept short-term interest rates at 0.5%, and maintained its quantitative easing programme, and this has provided support for the market, since the bank has been a major buyer of gilts in recent months.
Shaw Capital Management Korea February Newsletter:  Article three of three - However it has not been enough to prevent a very adverse reaction to the Pre-Budget Report from the UK Chancellor. The market did not really expect any significant action on the deficit ahead of the forth-coming general election; but was still surprised by the apparent lack of realism. The government is prepared to allow the deficit to continue to accumulate, and is relying on the gilt edged market to provide the funds to finance that deficit in the hope that this will enable it to win the election, and has produced no real indications of how the deficit might be reduced even after the election is over. It is not surprising therefore that investors have reacted by reducing exposure, that 10-year yields have risen to 4% and longer-term yields to 4.5%, and that there are even suggestions that the country could face a capital flight and a full-blown debt crisis in the coming months. We do not share these extreme views; but clearly the prospects for the market are very unattractive, and higher yields appear unavoidable. Investors have reacted by reducing exposure... and there are even suggestions that the country could face a capital flight and a fullblown debt crisis in the coming months.
Shaw Capital Management Korea February Newsletter:  Article three of three - The Japanese bond market is basically unchanged over the past month; but there are fears that present yield levels are unsustainable. A sharp reduction in the growth estimate for the third quarter of last year, and weaknesses since then have raised the possibility of a move back into recession and a further period of deflation. The government has reacted by launching its fourth fiscal rescue package since the economic crisis began last year. It amounts to the equivalent of a further $81 billion to be spent in the regions and on subsidies for consumer durables, and is expected to lift the debt issuance this year to a record $835 billion, despite the indications that bond investors may be becoming increasingly unwilling to finance such a high level of new bonds, and the warning from the IMF that the government is risking a significant increase in debt funding costs. Since overseas involvement in the bond market is at a very low level, such a development is unlikely to affect bond markets elsewhere directly; but it could be a warning to other countries of the dangers of placing too much pressure on their own markets.
Shaw Capital Management Korea - Investment Innovation & Excellence.  We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management based in Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

Shaw Capital Management News Washington Waxes Brazilian

Brazil provides us with an example of a rapidly developing, energy-hungry economy in the Western Hemisphere, where biofuel is a fact of life. Biofuel is also an investment imperative for energy investors and companies that want to make money in Brazil. As an important part of the #3 economy in the Americas, ethanol can't be ignored by the United States.
(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.
Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies ... Codexis and Iogen ... where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and...signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.
Shaw Capital Management Korea News: Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without
worrying if there will be buyers.
Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5 billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.

 

Shaw Capital Management Korea News: Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...

Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

About Author
  Shaw Capital Management, Korea - Investment Innovation & Excellence.  We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.   Â

Shaw Capital Management: South Korea's Economy

South Koreas output is continuing to accelerate, and the government needs to exit from its accommodative economic policies earlier than anticipated. The HSBC Koreas purchasing managers index (PMI) rose from 55.6 in January to 58.2 in February the highest since December 2007. New orders are coming in, and there are rising backlogs of unfulfilled orders.

Shaw Capital Management: South Koreas Economy - Employment too is rising suggesting that the current pace of growth will be sustained for the next several months. Inflation paced a little with consumer prices up 3.1% in January from a year earlier. But inflation in Korea is likely to remain stable for some months.

The central bank is expected to tighten its monetary policy by starting to raise interest rates from the current record low of 2% in the later part of the second quarter as the government retains its focus on job creation and growth.

Shaw Capital Management: South Koreas Economy - Exports expanded 31% year on year, better than Reuters forecast of 22.7%. South Korea posted a much larger-than-expected

trade surplus of $2.33 billion in February as ship deliveries boosted exports, while imports fell as holidays reduced crude oil and natural gas demand.

The government expects a monthly trade surplus of more than $1 billion from March as demand improves. The current-account surplus is most likely to dwindle to around $17 billion this year from $42.7 billion in 2009 as imports rise. A new Bank of Korea governor, widely expected to be a more pro-government figure, will not rush to raise rates after taking office

in April.

Exports grew 31% from a year earlier to $33.27 billion, faster than the expected rise of 21%, while imports climbed 36.9% to $30.94 billion, exceeding a forecast of an expansion of 34.0%.

South Korea, which is heading the G20 group of leading economies wants to leave an imprint of its presidency.

Shaw Capital Management: South Koreas Economy - It is trying to introduce a system of international currency swaps which it hopes will reduce global imbalances by lessening the need for countries to accumulate reserves, seen as one of the causes of last years financial and

economic crisis.

Shaw Capital Management - Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).

Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.

A true open architecture firm is completely independent of the rest of the financial services industry and accepts compensation only from its clients.

In addition, open architecture firms must make the financial commitment to hire only the most experienced advisors, and those advisors must apply their experience to the issues that will most affect their clients' wealth.

Matters like asset allocation and manager search are simply too important to be left in the hands of young analysts.

We are proud of our role in leading the open architecture revolution, and look forward to introducing you to its benefits.

Setting the Standard for Business Continuity Management in the Public Sector

The Civil Contingencies Act review and implications for Category 1 Responders

As we all know, the process of reviewing the Civil Contingencies Act is well underway and all the indications are that the Civil Contingencies Secretariat of the Cabinet Office is keen that the new version should include a requirement that Category 1 responders should have a Business Continuity Management System (BCMS) aligned to the British Standard in Business Continuity Management (BS 25999). It is not thought that BS25999 certification will be required, simply conformance which would be reviewed by the current public sector audit bodies.

The trend towards adoption of BS 25999 in the public sector

The Department of Health and the BSI jointly announced their initiative to encourage widespread adoption of BS 25999 Parts 1 and 2 (the code of practice and specification on business continuity management) across the UK National Health Service through a specially adapted Standard, BS NHS 25999. The Department sees BS 25999 as an ideal business continuity benchmark for organisations throughout the NHS.

The Government also accepted all of the recommendations of the Pitt Report into the heavy flooding in 2007, reinforced in its Sector Resilience Plan for Critical Infrastructure 2010, which includes the conclusion that a duty should be introduced on critical infrastructure operators to have business continuity planning to BS 25999 to more closely reflect the duty on Category 1 responders. This should include minimising the loss of supply as far as practicable in the event of a serious emergency resulting from flooding.

Pre-empting the need for BS25999 conformance by reviewing BCM programmes now

All this suggests very strongly that the trend in the public sector is towards the BS 25999 standard and public sector bodies who want to stay ahead of the game should be looking to pre-empt these requirements by starting to review their BCM programmes now. We are working with a number who are doing so and have noticed that many seem to approach this with a degree of trepidation. The good news is that there is no reason to, even if you are starting with little in place.

Benchmarking current business continuity management arrangements

Our recommended first step is to benchmark current BCM arrangements against the control set in BS 25999-2 and to identify where gaps exist. For organisations with mature, maintained and exercised business continuity programmes in place, the gaps should be few. BS25999 did not introduce anything new in terms of BCM good practice, it mainly codified what already existed in business continuity management and formalised some of the vaguer definitions. However, almost certainly, there will be some work to be done to bring the programme into full conformity, typically around the documentation sets and evidential requirements to demonstrate that BCM is truly embedded within your organisation.

Where, for a variety of reasons, the BCM programme has either not reached, or has slipped back from, full maturity and where maintenance through review, training and exercising regimes do not exist, a schedule of works may be required to establish the appropriate controls. Most organisations in this sector already have elements of incident response and escalation as a result of Emergency Planning requirements, but many are concerned about the potential resource demands (personnel and infrastructure) and costs (both overhead and capital) which may be incurred in developing BS25999-aligned BCM processes.

Common factors that reduce the cost of adopting BS25999

Working with a wide variety of public sector organisations and major infrastructure providers, including local authorities, hospital and care trusts, Emergency Services and utilities operators, we have discovered some interesting common factors which tend to reduce the cost and difficulty of achieving BS25999 conformity.

Previously existing incident response mechanisms

Firstly, as already mentioned, most of these organisations will already have comprehensive and well-designed incident response mechanisms. These can frequently be modified to provide an almost ready-made front end to the continuity and recovery processes. This removes the need for a significant part of the work normally required to develop this element of a BCM programme aligned to BS 25999.

Lower ICT dependency requires less ICT continuity planning

Secondly, many may also be less dependent upon Information and Communications Technology than the majority of private sector companies, as many of their most critical services are involved with direct interaction with the public, whether in terms of the provision of physical services or pastoral care.

Existing resilience against infrastructure-related incidents

Third, most public sector organisations, whether local authorities, NHS trusts or Emergency Services tend to be located on large campuses or across widely dispersed estates which provides a significant degree of built-in resilience against infrastructure-related incidents.

Working towards a BS25999 aligned BCMS

If starting from scratch, the first thing you need is a business continuity policy, a business impact assessment and risk assessment. Equipped with this knowledge of your organisation, you will be able to determine your strategic approaches to business continuity and commence planning. Using your existing Emergency Planning incident response and escalation procedures will speed up this planning phase. What you will need to do then is develop a schedule of BCM training and awareness for staff and BCM exercising to validate your plans and rehearse staff in their BC roles. Then to complete the lifecycle and continuously improve your business continuity management system, you will need a schedule for auditing, reviewing and maintaining your programme.

Possibly, if looking at BCM for the first time, this may seem daunting, but it is relatively straightforward to benchmark against the standard, whether you do it yourself or have it done by BCM consultants. In terms of implementing a programme, the business continuity policy outlines your approach to BCM, the scope of your BCM programme, roles and responsibilities and the requirements for exercising, maintenance and training schedules. The business impact assessment defines critical functions, objectives, resources and timescales and the risk assessment is looking at threats to continuity of critical functions with a view to increasing operational resilience. Plans effectively set out who goes where and does what, by when, with what resources. A large number of the controls in the standard are concerned with ensuring that the effectiveness and currency of the programme is maintained through reviewing maintaining, exercising and training and much of this can be integrated with existing committees, protocols and practices such as ISO 9001.

In summary, BS 25999 does not need to add to the cost or complexity of implementing business continuity

BS2599 does provide a useful and consistent business continuity benchmark that can actually make it simpler to implement by setting out what a good BCM programme looks like (Part 1) and offering advice on appropriate controls (Part 2). You will already have much of this in place and if you base your strategy on existing resilience, implementation costs should be minimised.

Start preparing for BS25999 conformity now

Of course, the less time you have to achieve something, the more resource it requires and the higher the cost. So, knowing that Category 1 responders will soon be expected to have a Business Continuity Management System aligned to BS 25999, the time to prepare for it is now.

Hypo Venture Capital Balanced Investment Strategy for Portfolio Management

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

Balanced investment strategy is perhaps the most followed and successful investment strategy for portfolio management. Its primary aim is to keep a balance between investment risk and return. A balanced investment strategy combines the merit of aggressive and defensive investing strategies.

Aggressive investment strategy involves investing in high return high risk investments with the sole purpose of maximizing return from investments. It involves allocating major portion of portfolio capital to invest in equities, equity based funds and highly volatile markets. Investors following aggressive investment strategy often look for comparatively short-term profiting and wish to invest more in growth stocks , and small caps and mid cap stocks. Advantages of aggressive investing include quick profit, high return over investment and no need of large portfolio capital. It can work really well for experienced investors and investors who are very strict in their money management. Disadvantages include high risk, high volatility in total portfolio value and no surety of profit. It less supports novice investors and investor looking for monthly earnings or living costs.

Defensive investment strategy is just opposite of aggressive investment; it’s purpose is to preserve the capital and ensure some return from investments. It involves investing in low profit low risk investments like bonds, money market funds, treasury notes, and equities with minimum price volatility and good dividends. Defensive investors look for long-term profits and/or monthly earnings. Advantages of defensive investment strategy include reduced risk, predictable income, better investment planning and diversification of portfolio. This strategy mainly suits beginners. Disadvantages include low return from investments and requirement of high capital investments.

In balanced investment strategy, the investor tries to keep a balance between his aggressive and defensive behaviors. It involves balancing of both return and risk by diversifying investments in both high return high risk and low return low risk investments. Balanced investors often follow a portfolio capital allocation rule telling how much to invest in equities and bonds and how much to invest in treasury notes, precious metals and funds. Usually one portion of portfolio is actively managed and other portion is left to grow automatically. Balanced investment strategy can be slightly aggressive or slightly defensive with respect to investments made.

The greatest advantage of balanced investment strategy is the diversification of portfolio and hedging against high total portfolio value volatility. It is good for investors looking for medium-term (3 to 5 years) profits. Other advantages include flexibility in portfolio management, better results with better capital investments, (almost) predictable income and manageable portfolio risk. Balanced investment strategy support both beginners and experienced investors and can be an option for monthly earnings for living.
Investing in your priorities
A socially responsible strategy allows individuals to invest in a way that is consistent with their own priorities. As indicated by performance in recent years, choosing to invest in this manner does not mean sacrificing potential return. However, not all investments will perform in the same way.
If this method of investing interests you, work with your Hypo Venture Capital financial advisor to learn more about how SRI options can work in conjunction with your overall investment strategy. There are a number of mutual funds to choose from that can be incorporated into an existing or proposed asset allocation strategy. Alternatively, you can select specific investments that fit more particular criteria or apply your own social screens to your managed portfolio. Be sure to consider how any investment you choose matches your risk profile and your return expectations.

The most effective approach to socially responsible investing is to make sure that the execution of the strategy is consistent with your overall financial plan. Your HVC financial advisor can help you review your current asset allocation and help you consider whether social investing is right for you.

Shaw Capital Tips and Warning on How to Spot Boiler Rooms

The North American Securities Administrators Association management estimates that unwary investors lose billions a year to investment fraud

. Self-employment scams and high-tech schemes are among investments most recently heavily promoted by online. This tip sheet is designed to provide investors with self-defense tactics to fight off the promotion of investment scams by "boiler rooms," the high-pressure phone sales operations from which sales people call to promote abusive and fraudulent deals.
Shaw Capital tips and Warning on Boiler Rooms and How to Spot a "Boiler Room" Scam and fraud:
High-pressure sales tactics. Salesmen and the management may make repeated calls and even become abusive, questioning, for example, the intelligence of anyone who would pass up such a "sure thing."
Outrageous promises of extraordinarily high profit at little or no risk. The management rule is: The higher the return, the higher the risk. Listen for salesmen who claim it is possible to make extremely high (15, 20 or 30 percent) or even "guaranteed" profits without any risk of loss. Most legitimate firms will provide written materials clearly disclosing the potential for loss in an investment, as well as its short- and long-term tax implications.
A demand for an immediate decision. Boiler room salesmen want fast action before you have a chance to develop second thoughts or consult with a professional for advice. As a result, many deals will be "gone tomorrow," "sold out today" or have "just one of two remaining openings."
A reluctance to provide information about the sales firm or the investment. If a boiler room is uncovered, it may be subject to state or federal action. Therefore, some phone scam operators are not forthcoming when asked information about the sales operation and investment.
Mumbo-jumbo about "inside information" or "secret" technology. In order to close a sale, the voice on the other end of the phone may tell you that this is a "sure thing." A common claim is that celebrities, major corporations or banks will be investing shortly. Or the salesman may claim that a new geological report is coming out shortly. In other cases, the claim may be that the company is using some sort of hush-hush "black box" technology that makes it possible to process gold at a fraction of the cost paid by other firms.
Delayed delivery of the product and/or profits. This is a classic "red flag" of an investment scam. If you don`t have your investment in hand or under your control in some other location, you have nothing for your money. Beware of promises involving delays of more than a few weeks for delivery of your investment.
Unusual arrangements for collecting funds from investors. Some con artists try to avoid mail fraud charges by using overnight courier services (Federal Express or Purolator, for example). Other phone scam operations go even further-sending a courier or cab to pick up the check. No matter what unusual collection method is used, the purpose is the same: Don`t give customers enough time to back out of sending money.

Shaw Capital Management Korea: Postal Reform Rollback

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 7, 2011 --
The Japanese government has decided to revise the
proposed reforms of the postal system …

Shaw Capital Management Korea: One of the world’s largest financial institutions
The government now proposes to absorb Japan Post
Network Co. and Japan Post Service Co. into Japan Post
Holdings on October 1, 2011.

The newly consolidated holding group will continue
to have two financial units, turning the system into a
three-company structure, from the current five
companies (currently, the system consists of Japan Post
Holdings Co. and four units — a postal service, a savings

bank, a life insurance company and a retailer for the
services of the other three).

Under the new plan, the current Democratic Party of
Japan-led government (DPJ) also plans to double the
maximum amount of deposits that Japan Post’s banking
unit can accept per person from the current ¥10 million
to ¥20 million and to raise postal insurance coverage
from the current ¥13 million to ¥25 million.

The government is also likely to hold on to more than
a third of the postal group’s shares in a turnaround
from full privatization — this will enable the
government to veto any major changes in the firm.

The bill with these latest changes, is expected to be

submitted to the Diet.

“We made the bill’s outline with the aim of ensuring
that Japan Post will sufficiently offer universal services
throughout the nation”, Shizuka Kamei, Japan’s Finance
Minister, told reporters at a press conference.

The Japan Post group provides insurance services
through its 24,000 post offices across the nation
especially in rural areas where private banks have little
or no presence or have trouble gaining the trust of
locals, and holds savings accounts for about 57 million
people.

The group as a whole employs about 226,000 people
and, with assets of more than ¥300,000 billion, sits at

the heart of a system of public institutions that own
almost half of Japan’s national debt.

Moreover, it helps to keep the government’s cost of
borrowing low even as its gross debt closes in on 200%
of annual output.

Japan Post was nominally privatised in 2003; with the
reforms spearheaded by former Prime Minister
Junichiro Koizumi, the champion of structural reforms
for a more market-oriented economy.

Under the previous plan, Japan Post’s financial units
were to be fully released from government control by
2017. With these latest moves, Prime Minister Yukio
Hatoyama’s government, which took power last

September from the long-ruling Liberal Democratic
Party (LDP), is halting the sale of its shares to maintain
control over the company’s plentiful assets, long a
source of public financing.

Behind the proposal is the government need for a
growth strategy.

In the fiscal 2010 budget, general-account expenditures
stand at a record ¥92 trillion, so politicians are pushing
for postal savings to be used to finance their policies.
But these proposed changes to postal reform raise
numerous concerns.

First of all, if the massive postal group attracts even
more money with the lifting of the savings cap, it will

hamper private-sector financial businesses and spark
an outflow of funds from private banks.
Tadashi Ogawa, chairman of the Regional Banks
Association, says raising the deposit cap is “truly
regrettable” because small regional banks in particular
will be affected in times of financial crisis because
depositors may flee to Japan Post Bank.

Moreover, the two subsidiaries — the postal bank and
insurance company — are likely to be permitted
substantial operational freedom.
This would, for example, enable them to offer housing
loans or sell cancer insurance policies.

The uneven public-private playing field, however,

would no longer be just a domestic problem. The US
and Europe have already expressed concerns about
these developments.

Also, creating an even bigger public financial entity
will loosen the government’s fiscal discipline through
increased purchases of government bonds (JGBs) and
accelerate wasteful spending on public works projects.

The system of public institutions buying JGBs has been
central to the economic status quo that has kept Japan
afloat since its stock market plunged in 1990.
“The revision will be a turning point for the worse”,
says Naoko Nemoto, a banking analyst at rating agency
Standard & Poor’s in Japan.

The deep misgivings over public spending originate
from the way postal savings were used for years.
The money had long been used to fund unnecessary
public projects such as highways, bridges and airports
in the middle of nowhere via the Finance Ministry’s
fiscal investment and loan program, which was
reformed in 2001.

Shaw to Host Conference Call to Discuss Global Strategic Partnership Announcement

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 14, 2010 --
The Shaw Group Inc. (NYSE: SHAW) today announced it will hold a conference call today, Nov. 29, 2010, at 11 a.m. Eastern time (10 a.m. Central time) to discuss a new global strategic partnership. A slide presentation will be posted on the Investor Relations page of Shaw's website at www.shawgrp.com approximately one hour prior to the conference call.
The Shaw Group Inc. (NYSE:SHAW) is a leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2010 annual revenues of $7 billion, Shaw has approximately 27,000 employees around the world and is the power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms. For more information, please visit Shaw's website at www.shawgrp.com.

This press release contains forward-looking statements and information about our current and future prospects, operations and financial results, which are based on currently available information. Actual future results and financial performance could vary significantly from those anticipated in such statements.

Among the factors that could cause future events or transactions to differ from those we expect are those risks discussed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2010, our Quarterly Reports on Form 10-Q for the quarters ended November 30, 2009, February 28, 2010, and May 31, 2010, and other reports filed with the Securities and Exchange Commission ("SEC"). Please read our "Risk Factors" and other cautionary statements contained in these filings. Our current expectations may not be realized as a result of, among other things:

* Changes in our clients' financial conditions, including their capital spending;
* Our ability to obtain new contracts and meet our performance obligations;
* Client contract cancellations or modifications to contract scope;
* Worsening global economic conditions;
* Changes to the regulatory environment;
* Failure to achieve projected backlog.

As a result of these risks and others, actual results could vary significantly from those anticipated in this presentation, and our financial condition and results of operations could be materially adversely affected. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, the occurrence of certain events, or otherwise.