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core value investment process

English translation: investment focused on "core value"

20:00 Jan 5, 2003
English language (monolingual) [PRO]
Bus/Financial
English term or phrase: core value investment process
Our US core value investment process and philosophy
(subject: fixed income portfolios management)
Can't figure out the meaning of the phrase.
Thanks!
Laura
Laura Vinti
United States
Local time: 10:01
Selected answer:investment focused on "core value"
Explanation:
"Core value investment" is more frequently used in conjunction with equity investment - here's a definition by JP Morgan's ADR site (URL below):

"Core Value

The focus of these investors is on buying securities at relatively low valuations on an absolute basis or in relation to the market or historical levels. Value portfolios typically exhibit below-average price-to-earnings, price-to-book and price-to-cash flow multiples. In addition, growth and profitability characteristics are frequently below market averages, but with an expectation for improved future performance. Similar to Core Growth, these investors focus on blue chip stocks and employ a buy-and-hold strategy. To have this dominant style, the following portions of the portfolio must be above the weighted average of the S&P 500:

45 percent or less for price-to-earnings ratio and price-to-book ratio
60 percent or less for dividend yield
50 percent or less for five year estimated EPS growth, and
not in the Deep Value, Income Value or Yield categories"

Adapting this concept to fixed-income investing, I would associate it with an investment strategy concentrating on "pure" value (as opposed to "relative value" - see my answer to your previous question), i.e. on the best value available in a straight US bond investment (without any spreads, hedges or other enhancements).

To be certain about it, I would need to see the description of the process, though.
Selected response from:

Ralf Lemster
Germany
Local time: 16:01
Grading comment
Again, thank you very much. One (small) question though: what is 'pure' value?
Ciao, L
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
5proceso de inversiones de valores de base
cruzacalles
2investment focused on "core value"
Ralf Lemster


Discussion entries: 1





  

Answers


43 mins   confidence: Answerer confidence 2/5Answerer confidence 2/5
investment focused on "core value"


Explanation:
"Core value investment" is more frequently used in conjunction with equity investment - here's a definition by JP Morgan's ADR site (URL below):

"Core Value

The focus of these investors is on buying securities at relatively low valuations on an absolute basis or in relation to the market or historical levels. Value portfolios typically exhibit below-average price-to-earnings, price-to-book and price-to-cash flow multiples. In addition, growth and profitability characteristics are frequently below market averages, but with an expectation for improved future performance. Similar to Core Growth, these investors focus on blue chip stocks and employ a buy-and-hold strategy. To have this dominant style, the following portions of the portfolio must be above the weighted average of the S&P 500:

45 percent or less for price-to-earnings ratio and price-to-book ratio
60 percent or less for dividend yield
50 percent or less for five year estimated EPS growth, and
not in the Deep Value, Income Value or Yield categories"

Adapting this concept to fixed-income investing, I would associate it with an investment strategy concentrating on "pure" value (as opposed to "relative value" - see my answer to your previous question), i.e. on the best value available in a straight US bond investment (without any spreads, hedges or other enhancements).

To be certain about it, I would need to see the description of the process, though.


    Reference: http://www.adr.com/
Ralf Lemster
Germany
Local time: 16:01
Native speaker of: German
PRO pts in pair: 377
Grading comment
Again, thank you very much. One (small) question though: what is 'pure' value?
Ciao, L
Login to enter a peer comment (or grade)

6 hrs   confidence: Answerer confidence 5/5
proceso de inversiones de valores de base


Explanation:
core value investment process > proceso de inversiones de valores de base
*******
>
Nuestra filosofía y procedimiento de inversiones de valores de base estadounidense (tema: administración de lista de ingresos fijos)
*******

cruzacalles
United States
Local time: 10:01

Peer comments on this answer (and responses from the answerer)
neutral  Steffen Walter: This is an English monolingual question IMHO.
7 hrs
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