As part of JS investment, Global Investment Company (GIC) is established and registered with SECP. It's a specialized investment consultation firm involved in just managing portfolios with international securities. Their new project involves inclusion of a developing economy of Levu in their Emerging Market Portfolio Fund (EMPF). Their research shows that this emerging country's economy is fairly diversified across manufacturing and natural resources (including agriculture), also, it has a growing financial sector. The accounting information about the financial information of the companies is also publically available. Although, the transaction cost is a little higher in their capital market and taxes are also higher. However, they are opening their capital markets and encourage capital inflows/outflows under government's strict surveillance. Now, GIC wants you to assist them in analyzing 2 aspects of Levu's environment that favor investing actively in its stock market. And finally recommending if this strategy of Equity Portfolio management is most appropriate in Levu's case.

part b)

. In January 2020, you have constructed a fixed income portfolio for your client (according to his needs) with two bond investment funds:

Orix Global Bond Funds (OGBF), is a passively managed fund tracking International Bonds Index (IBI). Sonari Index Fund (SIF), is an actively managed bond portfolio and its designed to beat the IBI.

The performance review of your client's bond portfolio shows that six months return for IBI, OGBF and SIF are 3.25%, 3.55% and 3.10%. He made the following two statements:

i."OGBF is a well-managed fund."

ii."Although, I expected that SIF to outperform IBI, Alas! The fund should be divested."

State if you agree or disagree with each of your client's statements and provide one reason for each of your answer in accordance with the bond portfolio management strategies.