Mar 9, 2006 19:56
18 yrs ago
English term
United States
Top Quality Financial Translations
Native in: Italian 
Works in: German to Italian, English to Italian
on an unleveraged basis
English
Bus/Financial
Investment / Securities
investor review
When we construct portfolios, we tend to allocate some of our risk capital to higher-returning investments designed to generate double-digit returns. Single-strategy hedge funds, emerging market equities and private equity usually dominate this category (although recently, income-based real property has been an unexpected addition). In addition to these investments, which are typically purchased ***on an unleveraged basis***, investors might consider leverage applied to moderate risk investments to end up with the same double-digit returns.
Does it mean that the investor doesn't use any leverage to buy these asset classes, or does it mean that the classes themselves don't use any leverage?
Thank you!
Laura
Does it mean that the investor doesn't use any leverage to buy these asset classes, or does it mean that the classes themselves don't use any leverage?
Thank you!
Laura
Responses
10 mins
Marian Greenfield
Native in English
&
English
Specializes in field
Over 30 years in financial translation
Native in: English
Works in: Spanish to English, Portuguese to English, English
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investor doesn't use leverage to buy these asset classes
Hi Laura!!! long time no see!!! Hope all is well and you're liking the new digs....
4 KudoZ points awarded for this answer.
Comment: "Thank you, Marian!
Yes, I like it here, but I am sure I would like it even more if I could work a little less!
Thank you to Victor too, you all have a great day,
Laura
"
12 mins
Victor Potapov
Russian Federation
Russian Federation
Specializes in field
Russian Federation
Financial, Legal, Oil&Gas and Technical
Native in: Russian 
Works in: English to Russian, Russian, Russian to English, and 1 more.
shares etc. purchased without leverage = 100% down
Of course these investments may be made in a number of "asset classes" - bonds, commodities or even real estate.
In summary: this fund promotes it as "looking out" double-digit returns available to it through investments in various instruments (see above). Usually to get double-digit returns you need leverage (the higher - the riskier). This fund effectively says: "We know how to invest without incurring a lot of risk - and how to get over 10% p.a.!"
Doesn't sound right to me. But linguistically - yes, unleveraged means they pay full price, not just x% down (and lose their sleep at night over potential margin calls).
Good luck!
In summary: this fund promotes it as "looking out" double-digit returns available to it through investments in various instruments (see above). Usually to get double-digit returns you need leverage (the higher - the riskier). This fund effectively says: "We know how to invest without incurring a lot of risk - and how to get over 10% p.a.!"
Doesn't sound right to me. But linguistically - yes, unleveraged means they pay full price, not just x% down (and lose their sleep at night over potential margin calls).
Good luck!
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