Its the green economy, stupid
"Increase in global assets under management by 10 per cent in 2010 to reach a record of $79.3 trillion, has made investment management critical for both individuals and organisations," said Dr. R.Seetharaman, Group CEO, Doha Bank .
He was speaking at a knowledge sharing session of European University held in Geneva and Munich recently. Students, industry experts and experienced faculty from various back grounds attended this session.
Dr. R. Seetharaman spoke on investment management where he highlighted its importance and various investment philosophies.
He said: "Globalization has urged a need for professional investment management practices across the multinational companies. The changing outlook on economic data, political situation, fiscal balances and monetary policies results in pro-active investment management practices. Institutions can improve the risk appetite by having market risk departments. Investment philosophy can be pre-determined or opportunistic based on guiding principles. The attractive valuations of Qatari markets offer an opportunity for the investors to enter at the current levels coupled with an expected dividend yield of 5.2 per cent for financial year 2013."
Dr. R.Seetharaman spoke on various asset classes. He said: "Hedge funds and Sovereign wealth funds have also become a key institutional investor in markets apart from Banks, Pension funds and Insurance Companies. Hedge funds follow global macro, directional and event driven strategies. Private equity firms receive their return on investments through Initial Public Offerings (IPO), sale, merger or recapitalization"
Dr. R.Seetharaman explained the current scenario prevailing in the global economy. He stated that "Global economy is expected to grow at 3.3 per cent in 2012. Advanced economies are expected to grow at 1.3 per cent for 2012. US economy growth is expected grow at 2.2 per cent for 2012. Euro Zone is expected to contract by 0.4 per cent for 2012. Emerging economies are expected to expand by 5.3 per cent in 2012. Growth will slow in several large developing countries, mostly because they will export less to Europe and the United States. China's economy will likely expand by 7.8 per cent this year. India's economy will grow by 4.9 per cent in 2012. Spillovers from advanced economies and domestic issues prevailing in emerging and developing economies have held-back activity in emerging market and developing economies. Delayed or insufficient policy action may further escalate the euro area crisis. Delays in raising the federal debt ceiling in U.S could increase risks of financial market disruptions and a loss in consumer and business confidence."
Dr. R.Seetharaman explained the importance of green economies and sustainable development.
He stated: "Environmental protection, economic development and social development are required for sustainable development of green economies. A key element for establishing a successful global green economy was guaranteeing the availability of sustainable energy for all. It calls for stronger government policies, public-private partnerships, and collaboration between businesses, academia, technology providers, financial institutions and civil society to further secure the longevity of green industrial development throughout the world. Eco green investment practice will contribute to sustainable development and develop green economies."
Dr. R.Seetharaman highlighted the global financial stability scenario. He said "Global financial stability is impacted by the Eurozone crisis, US fiscal cliff and slowdown in emerging economies. The severity of recent Global financial crisis has placed focus on the growing impact on ecosystems the widening inequalities within nations as well as between world regions, and escalating social discontent. Invest in key resources and natural capital which can becomes areas for future growth. Combine market and regulatory instruments and improve governance and encourage private sector investment. The Global financial stability is contingent on green economies."
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