finance case vanguard international growth
Issues
1. Explain why an individual investor might want to invest in an international growth fund?
2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an international funds, and those risk that would be unique to an international fund.
3. Discuss how the fact that foreign companies are not subject to the same accounting, auditing, and financial reporting standards and practices as U.S. companies poses a risk not typically encountered when investigating in the stock of U.S. companies.
4. Consider the allocation of funds assets by region. Speculate as to why the portions of fund assets are distributed in this manner.
5. Consider the country diversification of funds assets. Identify the countries in which the funds in most heavily invested. Speculate as to why this might be the case. Are there any countries in which you would have expected the fund to be more heavily invested than it is? Are there any countries in which you would have expected the fund to be invested and it is not?
6. Consider the sector diversification of funds assets. Identify the sectors in which the fund is most heavily invested. Speculate as to why this might be the case.
Facts
The Vanguard International Growth Fund is one of the 13 international funds that concentrate on investment in non-U.S. stocks and bonds. The target is in companies that are emerging in Europe, the Far East, and Latin America that have above average potential for growth. The fund is subject to stock market risk. This type of investment can be riskier than investing in U.S stocks, since sometimes the prices move in opposite directions.
This funds are subject to managers risk, which in cases if poor security or focus security in particular sectors, categories or groups will cause the Fund to underperformance. Also the Funds are subject to country/regional risk and currency risk, that will be affected if there is any
1. Explain why an individual investor might want to invest in an international growth fund?
2. Describe the risk associated with making an investment in an international growth fund. Identify the risks that would be common to domestic an international funds, and those risk that would be unique to an international fund.
3. Discuss how the fact that foreign companies are not subject to the same accounting, auditing, and financial reporting standards and practices as U.S. companies poses a risk not typically encountered when investigating in the stock of U.S. companies.
4. Consider the allocation of funds assets by region. Speculate as to why the portions of fund assets are distributed in this manner.
5. Consider the country diversification of funds assets. Identify the countries in which the funds in most heavily invested. Speculate as to why this might be the case. Are there any countries in which you would have expected the fund to be more heavily invested than it is? Are there any countries in which you would have expected the fund to be invested and it is not?
6. Consider the sector diversification of funds assets. Identify the sectors in which the fund is most heavily invested. Speculate as to why this might be the case.
Facts
The Vanguard International Growth Fund is one of the 13 international funds that concentrate on investment in non-U.S. stocks and bonds. The target is in companies that are emerging in Europe, the Far East, and Latin America that have above average potential for growth. The fund is subject to stock market risk. This type of investment can be riskier than investing in U.S stocks, since sometimes the prices move in opposite directions.
This funds are subject to managers risk, which in cases if poor security or focus security in particular sectors, categories or groups will cause the Fund to underperformance. Also the Funds are subject to country/regional risk and currency risk, that will be affected if there is any