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Windstream Holdings, a communications company formed in 2006 by the merger of Alltell and Valor Communications, acquired 9 companies within 8 years. This rapid growth led to a substantial rise in debt which, together with increasing competition from other telecommunications companies, impacted their ability to service their obligations. It became apparent that something significant had to be done.
The home country bias The International Journal of Economics and Finance states that “in order to reduce portfolio risk, investors should hold nationally and internationally well diversified portfolios.” The same source also cites international portfolio theory that in terms of portfolio construction, international diversification should take higher precedence over diversification within respective national markets. However, investors persistently overweight their allocations towards domestic assets. This is known as the “equity home bias.”
Franklin D. Roosevelt observed that real estate cannot be lost or stolen, nor can it be taken away. He also noted that real estate purchased with common sense, paid for in full, and managed with reasonable care, is the safest investment in the world. Commercial property is often targeted as a means of accumulating wealth and generating a secondary income. However, “paid for in full” is not something we necessarily agree on, as FDR is missing a key advantage of owning property in his statement, that being the use of debt to leverage returns. {phocadownload view=file|id=98|text=Click here to download the…
Is not staying invested... Over the past 20 years, the JSE has returned around 15% per annum. However, if an investor had missed just the best 75 out of the 5 264 trading days in this period, their return would have been zero. click here to read the article on Moneyweb (Source: Moneyweb)  
REITs have gained a reputation as bond substitutes that are highly interest-rate sensitive. While many REITs are indeed bond-like, it actually is possible to buy REITs without significant interest rate risk and without sacrificing dividend yield. This article looks at the least interest-rate sensitive REITs. These REITs respond more to economic data and company-specific news flow. Click here to read the article on Seeking Alpha (Source: Seeking Alpha)
Some REIT sectors and individual REITs are highly sensitive to changes in yields, while others actually move inverse to rising yields Click here to read the article on Seeking Alpha (Source: Seeking Alpha)
SA Editor Robyn Conti and SA Pro Editor John Leonard discuss evaluating real estate investment trusts, with a focus on REITs with specific niches. They delve into key metrics investors should consider when looking at different types of REITs, i.e., apartment, retail, hotel, etc. Click here to read the article on Seeking Alpha (Source: Seeking Alpha)
Low interest rates and an improving job market have created a wave of prospective first-time home buyers, but they're being stymied by a dearth of available starter homes. REITs positioned in this space have performed well in recent years and a lack of new supply suggests a continuation of the trend… click here to read the article on nbc news (Source: NBC News)
Due Diligence is a term that is being heard more and more in Financial Planning circles and which could well turn out to be a really important function and process in our interactions with Clients.