Institutional Investors

Institutional investors are the mutual funds, retirement funds, insurance companies, investment banks, endowment funds, commercial trusts, hedge funds, and some hedge fund investors, which are financially sophisticated and makes large investments, often held in large portfolios of investments. Non-institutional investors are any investors that aren’t institutional. Institutional investors account for half part of the volume of trades on the New York Stock Exchange.

Investment Management

Investment management comprises a broad spectrum of topics ranging from the workings of capital markets, to valuation of financial securities, to the construction of portfolios of assets to meet the objectives of investors. Investment itself can be considered any activity that requires the commitment of current wealth to some set of specified assets for the purpose of enhancing future wealth. These assets can be either real, such as gold, art, real estate, or financial, e.g stocks, bonds. The enhancement of future wealth can be derived from appreciation in the value of the asset itself, referred to as capital gains, or as income provided to the owner of the asset.

Portfolio of Investments

The process of investing in securities can be visualized in terms of three problems. The first problem is choice – which of the individual assets will be acquired. The second problem is allocation – how the assets will be combined into a portfolio. The final problem is one of timing – how to respond to changing market conditions. This description is helpful in understanding the process, but in practice all three problems are interrelated and must be solved together.

Foreign Investment

The impact of foreign investment is complex and unclear. Fears of loss of economic sovereignty are sometimes countered by noting that foreign investment, though involving large sums, is still only a very small portion of the U.S. economy. The tall levels of foreign investment (FI) led to concerns about a loss of control over “economic sovereignty”, or domestic economic activity, and the effect of foreign ownership on national security. On a global basis, and over a long time, a free flow of capital is beneficial since it promotes an efficient allocation of resources. For shorter periods, and within a given country or region, the impact is mixed.

Foreign Direct Investment (FDI)

Foreign direct investment (FDI) is characterized as a long-range investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The Foreign Direct Investment interrelation, consists of a parent enterprise and a foreign affiliate which together form a transnational corporation (TNC). In order to qualify as Foreign Direct Investment the investment must afford the parent enterprise control over its foreign affiliate. Different kinds of fdi: Greenfield Investments, Brownfield Investments, Mergers and Acquisitions.

Multinational Corporation(MNC)

Multinational corporation (MNC) – a large company with plants or other direct investment in one or more foreign countries. It is also called an international corporation or a transnational corporation. Typically, the multinationals have operated in developing countries, where they provide technology, finance capital, and marketing skills in return for a profitable market. But even advanced industrial nations may be the scenes of investment by multinational companies. The power that multinationals can exert over foreign governments has been the target of criticism, but many host countries have imposed regulations that have given them a larger share of profits, jobs, and markets.

www.investmentsandincome.com/investments…

Текст 8.

Задание 1. Прочитайте исходный текст в ускоренном темпе. Выполните перевод с листа исходного текста, сохраняя темп чтения оригинала.

Задание 2. Передайте как можно ближе к оригиналу содержание текста на английском языке, воспроизведя по памяти как можно больший объем прецизионной информации, заключенной в тексте (без опоры на письменный текст).

ИНВЕСТИЦИИ: КРАСНОЯРСКИЙ КРАЙ

Инвестиционная активность в крае связана, в первую очередь, с реализацией крупных проектов, а также с вложениями в инфраструктурное обеспечение этих проектов.

Крупнейшим из них является инвестиционный проект «Комплексное развитие Нижнего Приангарья».

Проект реализуется в рамках государственно-частного партнерства и включает в себя несколько составляющих:

• реконструкция и строительство участков автодороги Канск-Абан-Богучаны-Кодинск, строительство мостового перехода через р.Ангару. В течение 2008 года фактически введено в эксплуатацию 77,3 км. дороги, обеспечен сквозной проезд по автомобильной дороге Богучаны – Кодинск;

• строительство железнодорожной линии Карабула – Ярки в Богучанском районе;

• строительство схемы выдачи мощности Богучанской ГЭС;

• строительство алюминиевого завода;

• строительство лесопромышленного комплекса;

• достройка Богучанской ГЭС;

• подготовка водохранилища Богучанской ГЭС.

Другим примером государственно-частного партнерства является реализация инвестиционного проекта «Освоение Ванкорского нефтегазового месторождения».

Помимо крупных инвестиционных проектов, в Красноярском крае в 2008 году осуществлялась реализация 24-х федеральных целевых программ, в том числе 14-х подпрограмм, а также финансирование объектов федеральной собственности на территории края из федерального бюджета по непрограммной части федеральной адресной инвестиционной программы.

www.krskstate.ru

Текст 9.

Задание 1. Прочитайте однократно оригинальный текст и передайте устно на английском языке его основное содержание.

Задание 2. Выполните устный перевод с листа.

KRASNOYARSK KRAI RATIONALE

Peer Comparison

Concentration of the tax base in Krasnoyarsk Krai is one of the highest among Russian peers. Industrial concentration is similar to the Khanty-Mansiysk Autonomous Okrug (BBB-/Stable/-; Russia national scale ‘ruAAA’), but unlike the okrug, which is dependent on oil, Krasnoyarsk’s major revenue contribution is from mining and metal production. This production comprises different metals, the prices of which are not perfectly correlated, thus the volatility of commodity prices is somewhat mitigated.

Improved budgetary performance over the past five years means Krasnoyarsk Krai is now at the level of high-performing peers such as the Republic of Bashkortostan, Khanty-Mansiysk Okrug, and Sverdlovsk Oblast. Looking forward, we expect budgetary performance to be less volatile, maintaining at least the average operating surplus achieved in 2004-2006 (at slightly above 10% of operating revenues), and a 7% deficit after capital expenditure at 7% of total revenues, which is good by international standards.

The krai’s current management compares well with those of peers in terms of transparency, disclosure, and commitment to control the deficit and keep debt burden at a low level. Long-term planning, however, needs more sophistication, as with most Russian peers.

System Support And Predictability

The Russian local and regional government (LRG) system remains centralized, with federal government control over major taxes and LRG borrowings. Following recent reforms, there has been a notable improvement in the stability and predictability of the system of intergovernmental relations in Russia. System improvements are in place after the completion of major tax reforms, and there is a clearer distribution of revenue and expenditure responsibilities between the different levels of government under the framework of inter-budgetary reforms.

System risks, however, remain high by international standards because of weak revenue and expenditure equalization, a nontransparent system of checks and balances, and low LRG accountability. The system continues to evolve, with reforms still affecting all major areas of LRGs’ day-to-day operations and strategic planning, including tax revenues, debt, equalization mechanisms, responsibilities, and accounting and reporting. These changes create uncertainty in the LRG operating environment, and make planning and budgeting difficult.

Good transparency and professional financial management

The krai’s financial management compares well with its Russian and international peers. Its transparency and disclosure of public finance and debt, including the municipal level, is high. As in all other Russian regions, budgeting is incremental and on an annual basis. In 2007, the krai elaborated 28 programs for the main branches of the economy and public sector, in which it outlined its expenditure needs for the next three years. These needs were incorporated in the financial plan of 2008-2010.

Budgeting of revenues remains very conservative, and like other Russian regions is based on the modest forecasts by core enterprises. This is the main reason for deviations of the actual figures away from the initial approved budget figures.

Relations with municipal elites are formalized and have improved since interbudgetary parameters were fixed by the krai interbudgetary legislation in 2003. The coordination of plans between companies and the krai is extremely important and implemented through cooperation agreements, as in other heavily industrialized Russian regions.

The management of reserves and liquidity has also improved following the introduction of the treasury system, with daily liquidity control proving its efficiency. The krai successfully implemented a special five–year restructuring program for payables accumulated since the 1990s, initially adopted in 2002.

Debt management is prudent. Past experience shows that the krai has always fulfilled its debt obligations, even in times of political change and fluctuating performance.

The management of government-related entities (GREs) requires more sophistication, however, compared with East and West European peers. That said, the krai has become more transparent in reporting its GREs’ financial performance.