This website uses cookies to ensure you have the best experience. Learn more

Investment Plan Essay

3568 words - 15 pages

Investment plan


Table of Contents
1. Introduction 3
2. Why the Currencies 4
3. Macro-analysis 5
4.1 The political situation 8
4.2 Investment climate 9
4.3 Threats to the Colombian Market 9
5.4.1 Risks of the fluctuation of the Colombian Peso interest rate 10
5. 3 scenarios 11
5.1 Scenario 1 11
5.2 scenario 2 14
6.3 Scenario 3 15
6. Advice 16
7. Bibliografy 17

1. Introduction
The two currencies that have been chosen for this report are the Colombian peso and the US Dollar. The bank of Utrecht will consider the possible investing situations based on the 3 scenarios presented on these reports with the different hedging techniques and the ...view middle of the document...

Because the currency seems to be gaining strength and won’t trade higher than resistance of $2040.00 Colombian Peso per Dollar and the support level of $1760.00 COP/USD.

Interest Rates, 1995 - 2008 |

The reason why the bank of Utrecht will use the prime interest rate is because the bank of Utrecht is an above average credit worthy partner for other financial institutions and due to that reliability the bank of Utrecht will adhere to the given prime interest rate.

3. Macro-analysis
Indicators - 09/01/2011 |
Inflation |   |   |
Inflation Target | 2.0%-4.0% | |
Annual Inflation
December | 3.17 | |
Real Value Unit (RVU) 09/01/2011 | 190.9350 | |
Interest rates - 09/01/2011 |   |   |
Intervention Rate | 3.00% |   |
Interbank Rate | n.d. | |
Deposits to Fixed Terms (DTF) Rate | 3.50 | |
IBR |   |   |
IBR Overnight
07/01/2011 | 2.961 | |
IBR 1 Month
04/01/2011 | 2.980 | |
Market Exchange Rate - 09/01/2011 |   |   |
Exchange Rate -
09/01/2011 | 1,859.97 | |
Nominal Depreciation – Last 12 months | -5.50 | |

The Colombian economy has been growing in a fast pace the last couple of years, with an average of 4% the last couple of years, the economy and the 3rd country that is most invested in South America with an amount of $4.1 billion, behind Brazil ($17.1 billion) and Chile ($ 8 billion), and in front of Peru ($3.4 billion). With the many resources Colombia has, the economy has shown to be resilient, with a stable inflation rate of 2, 3% in the year 2010, which in the long run will mean that Colombia’s economy is steady. Based on what was said above this report will go into other aspects of what makes Colombia the right place to invest right now. Here are some key indicators of Colombia compare to the United States of America.
Country | GDP Billions US$ | GDP Growth | Interest Rate | Inflation Rate | Jobless Rate | Current Account | Exchange Rate |
Colombia | 231 | 1.00% | 3.00% | 2.62% | 12.80% | -1396 | 19.190.000 |
United States | 14256 | 2.60% | 0.25% | 1.10% | 9.40% | -127 | 803.620 |

Colombia has a growing economy as can be seen out of the figures above. The economy is quite similar to that one of Brazil. Like Brazil, Colombia has cheap work force, lot of natural resources and oil and natural gas. What makes Colombia an interesting trade partner to the United States of America in their to strive to be less dependent on rogue economies, like: Venezuala, Iran, etc.
2010 | Ene. | 53,0 | 14,6 |
  | Feb. | 54,6 | 12,6 |
  | Mar. | 54,3 | 11,8 |
  | Abr. | 55,4 | 12,2 |
  | May. | 54,9 | 12,1 |
  | Jun. | 55,2 | 11,6 |
  | Jul. | 54,7 | 12,6 |
  | Ago. | 55,5 | 11,2 |
  | Sep. | 56,6 | 10,6 |
  | Oct. | 57,3 | 10,2 |
  | Nov. | 56,8 | 10,8 |
The Unemployement rate at Colombia has been decreasing steadily in the past decades, coming from 20%! The Colombian economy has shown to be resilient in the economic crisis times and due...

Other Papers Like Investment Plan

Mcs 2100 – Personal Finance Management: Case Study

1862 words - 8 pages for a future down payment on a house. Her plan is to buy a house outside of Toronto area in the next three to four years. She has a lost risk level of four out of ten as she does not want to lose the money she got from her grandmother. Moreover, she would like to obtain tax relief on her investment. At the same time, she only wants to spend about one hour per month in managing her investment. She has an adequate emergency fund on hand; therefore

Retirement Plan And Communication Proposal Essay

1239 words - 5 pages benefit and contribution limits, employers are limited to the percentage amount contributed to the defined contribution plan. Employers invest funds on behalf of the employee from an array of investment options, such as stocks, bonds, and market funds (Martocchio, 2009, p. 7). Being a newly operational and small company, investment options should be limited to employer choice based on fiduciaries reports. A popular type of defined

Reporting Pension Plans

766 words - 4 pages composition of plan assets, plan liabilities, and plan net assets (b) A statement of changes in plan net assets that provides information about the year-to-year changes in plan net assets The notes requirement should address the following: * Brief plan description * Summary of significant accounting policies * Information about contributions, legally required reserves, and investment concentrations Category 2: Information should be


547 words - 3 pages 1million to go abroad for further study. His annual expenditure is 5000$ per month, it is recommended to 7% of the premium expenditure. 2.investment product configuration plan According to the separation theorem, the rational allocation of assets is considered, the customers are conservative investors, the proposed fund 50%, bond 30% and 20% of the investment portfolio, the expected return rate of investment 9%. Original demand deposits

Defined-Contribution Plan; Types

636 words - 3 pages Yini Xu Wealth Management 3/2/2016 Defined-Contribution Plan; Types A defined-contribution plan is a type of retirement plan for employee’s benefits during retirement. Every employee has an individual account. It depends on the contributions made by employers, employee or both and the investment performance of the account. The amount contained in the account is equal to the market value of the assets accumulated. It is not based on the

Asset Classes Paper

662 words - 3 pages expansion or growth plans for emerging markets such as India and China. In June 2008, as part of its strategic plan to increase its manufacturing footprint in the rapidly growing Asia-Pacific region, Caterpillar announced a four-year, $200 million investment to increase manufacturing capacity in India. In terms of investments, the company's investment portfolio comprises of government debt, corporate bonds and equity securities. Cat Insurance

F & C International

420 words - 2 pages business plan for a non-profit might discuss the fit between the business plan and the organization’s mission. Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization’s ability to repay the loan. Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain

Personal Financial Advisor

1308 words - 6 pages rate of return that you expect for your investment?Which risk level is sustainable to you?When Brook is in college, do you plan to buy a car for him?Is it convenient for your family to have only one car?Is there anything other than inflation that will make your expenses increase in the coming years?Are your jobs stable? Do you plan to have another job?What is Emily's birthday? I would like to know exactly which year she will go to college to

Precautionary Measures for Investment Opportunities

700 words - 3 pages against market loss and there is no guarantee that a diversified portfolio will outperform and undiversified one. NOT HAVING A PLAN: You may have heard the old saying....if you don't know where you're going, any road will take you there. You must have a personal investment plan with specific goals and objectives. Whether it's retiring at age 60 or saving enough money for your children's college you need a plan. A plan will help you adhere to a

Intersect Investment

571 words - 3 pages Every company must evaluate the effectiveness of their business practices, and make adjustments when necessary. Intersect Investment Company has struggled since September 11, 2001. In the search for a solution to their problem, it is important for Intersect Investment to conduct benchmarking research. The decisions for company restructuring is done by a process called benchmarking. In the case of Intersect Investments, both competitive and

Protect Your Money

1249 words - 5 pages Protect Your Money: Check Out Brokers and Investment Advisers Tips for Checking Out Brokers and Investment Federal or state securities laws require brokers, investment advisers, and their firms to be licensed or registered, and to make important information public. But it's up to you to find that information and use it to protect your investment dollars. The good news is that this information is easy to get, and one phone call or web

Related Essays

Foreign Subsidiary Investment Plan Case: Multinational Capital Budgeting China & Australia

5529 words - 23 pages Foreign Subsidiary Investment Plan Case: Multinational Capital Budgeting China & Australia Hypothetical Incorporated MBA AF 626 Fall 2011 International Financial Management Professor XX XX XX XX XX Table of Contents PART I – Analysis: Australia vs. China A. Country Analysis 1. Economic Environment 3 2. Social Environment 10 3. Political Environment 12 B. Industry Analysis 1. Aluminum Industry in

Retiree's Problem Essay

1198 words - 5 pages Financial Portfolio Name Institution Financial Portfolio To achieve successful financial objectives, integration of strategies of proper financial investment is integral in any financial plan. An all-weather portfolio is a financial plan that put in consideration the concept of risk parity. Risk parity is an investment approach that allocates funds to wider range of categories that include the government, bonds, stocks, and equities

Contribution Plans Essay

627 words - 3 pages With a defined-contribution plan (DCP), your employer contributes a specific amount to your retirement plan while you are working; then, when you retire, your employer is absolved of any further responsibilities. In a defined-contribution plan, both you and your employer generally contribute to the fund. Your pension is determined by how much both you and your employer invest each year, how fast the investment grows, and how many years your

Marketing Essay

963 words - 4 pages this specific Balance Sheet date, the company is in a reasonable position. However, it is always important to keep in mind that liquidity is a volatile statistic that can move from good to poor very quickly…” ( ) In summary, I know that be a successful investment banker working in client relations, I will have to complete my undergraduate program in marketing at Claflin with a strong GPA and then earn an MBA. In the process, I will have to ensure that my ability to communicate in general is superior, with exemplary analytical writing skills in particular. To this end, I plan to make every possible effort. .