Finance: Evaluating Investment Portfolio Performance and Components

This article evaluates the performance of an investment portfolio in the ASX equity market, identifies the investment components used, and recommends modifications. It also discusses the global, economic, and industry environment relevant to the equity market.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
1. Evaluating the summary of global, economic, and industry environment relevant to the
equity market:.............................................................................................................................2
2. Summarizing the profitability of the investment portfolio:...................................................2
3. Identifying the discussing the significance of the investment components used for the
investment purposes:..................................................................................................................4
4. Calculating the performance of the portfolio with the index ASX 200:................................5
5. Recommending any kind of modifications for the portfolio structure:..................................5
Reference and Bibliography:......................................................................................................6

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1. Evaluating the summary of global, economic, and industry environment relevant to
the equity market:
Current political condition of Australia is relatively adequate for investments as the
government is taking relative steps for boosting corporate progress and focusing for
maximizing the profits. The current economic condition of Australia is also viable where the
stock market is a relatively gaining more ground due to the different policies adopted by the
government. the companies are relatively growing and having a positive cash inflow due to
the Global stability in the financial market. the current Global affairs is a relatively stable
way there is no current threat to the financial sector of the world, which was present few
years back. The investment scope in the current year is a relatively high, as Global economic
and industrial environment for companies are relatively positive, which would allow them to
increase their revenues during the fiscal year. Therefore, the investment scope would
eventually help investors in generating high rate of return from their investments in the
current ASX equity market (Gray, 2014).
2. Summarizing the profitability of the investment portfolio:
Name
23-02-
2018
15-05-
2018
Shar
es Amount Amount
Profit/
loss
ARISTOCRAT
LEISURE $24.46 $28.67 3000
$73,380.0
0
$86,010.0
0
$12,630.
00
TREASURY WINE
ESTATES $17.63 $18.00 5000
$88,150.0
0
$90,000.0
0
$1,850.0
0
FLIGHT CENTRE
TRAVEL GP. $56.31 $59.72 1500
$84,465.0
0
$89,580.0
0
$5,115.0
0
SEVEN GROUP
HOLDINGS $18.52 $19.97 5000
$92,600.0
0
$99,850.0
0
$7,250.0
0
MINERAL
RESOURCES $19.50 $19.06 5000
$97,500.0
0
$95,300.0
0
($2,200.0
0)
NIB HOLDINGS $7.04 $5.75
1000
0
$70,400.0
0
$57,500.0
0
($12,900.
00)
NORTHERN STAR $6.14 $6.62
1200
0
$73,680.0
0
$79,440.0
0
$5,760.0
0

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SIMS METAL
MANAGEMENT $16.95 $16.71 6000
$101,700.
00
$100,260.
00
($1,440.0
0)
WISETECH GLOBAL $11.54 $14.16 7000
$80,780.0
0
$99,120.0
0
$18,340.
00
WORLEYPARSONS $15.39 $17.45 9000
$138,510.
00
$157,050.
00
$18,540.
00
ACONEX $7.75 $7.79
1000
0
$77,500.0
0
$77,900.0
0 $400.00
ALTIUM $20.07 $22.66 3500
$70,245.0
0
$79,310.0
0
$9,065.0
0
COSTA GROUP
HOLDINGS $6.17 $7.51
1200
0
$74,040.0
0
$90,120.0
0
$16,080.
00
NEXTDC $6.71 $7.57
1000
0
$67,100.0
0
$75,700.0
0
$8,600.0
0
SIRTEX MEDICAL $27.55 $29.75 3000
$82,650.0
0
$89,250.0
0
$6,600.0
0
TOTAL
$1,272,70
0.00
$1,366,39
0.00
$93,690.
00
Name
23-02-
2018
15-05-
2018 Shares Amount Amount
Profit/
loss
FORTESCUE
METALS GP. $5.18 $4.90
5,000.
00
$25,900.0
0
$24,500.0
0
$1,400.
00
SEVEN WEST MEDIA $0.64 $0.70
20,000
.00
$12,800.0
0
$13,900.0
0
($1,100.
00)
VOCUS GROUP $2.37 $2.59
10,000
.00
$23,700.0
0
$25,900.0
0
($2,200.
00)
HT&E $1.81 $2.42
11,000
.00
$19,910.0
0
$26,620.0
0
($6,710.
00)
FLETCHER
BUILDING (ASX) $6.07 $6.01
3,000.
00
$18,210.0
0
$18,030.0
0 $180.00
TOTAL
($100,520
.00)
($108,950
.00)
$8,430.
00
Particular Contract Value 23-02-2018 15-05-2018
Future contract@5999 8 15000 $120,000.00 $19,760.00
Cash holding $207,820.00 $207,820.00
Total portfolio value
$1,500,000.0
0
$1,602,400.0
0
The above tables relatively help in identifying the portfolio value, which has changed
during the three months period of investment. from the evaluation it could be identified that

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the overall portfolio value of 1.5 million has a relatively change to 1.602 million in the period
of 3 months. this was mainly achieved by conducting adequate investments on equity market
of the Australian index. the portfolio relatively consists of Equity stocks where it was bought
and sold simultaneously, while the use of futures contract also conducted to hedge the
negative impact from capital market. Therefore, from the evaluation it could be identified that
the portfolio created for investment purposes was adequate, which and effectively helps in
generating higher rate of returns from investment. This could be seen from the increased
value of portfolio during the investment period of 3 months (Johannes, Korteweg & Polson,
2014).
3. Identifying the discussing the significance of the investment components used for the
investment purposes:
The adequate investment scope that was used for creating the portfolio was the return
from previous one year. the calculation was relatively conducted on the basis of the early
progressive that was made by the organisation during the previous fiscal year. The technical
analysis was used where the returns was calculated for a particular stock, which has a
relatively help in detecting the investment opportunity which would generate higher rate of
returns from investment. Therefore, the identified investment components relatively accurate
and was able to generate adequate returns from investment which led to the increment in the
portfolio value within the investment period of 3 months. In this context Ling, Naranjo &
Scheick (2018), stated that investors with the help of technical analysis is able to identify
investment opportunities, which could generate higher rate of returns from investment while
reducing the risk. Hence, it could be understood that the components used for investment
purposes was adequate in drafting the portfolio, which generated high rate of returns during
the period of 3 months.

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4. Calculating the performance of the portfolio with the index ASX 200:
Particular Amount Return
Portfolio
$1,500,000.0
0
$1,602,400.0
0 6.83%
ASX 200 index $5,999.00
$6,097.80 1.65%
The above table compares the performance of ASX 200 index with the portfolio,
which helps in identifying the efficiency and performance of the investment conducted during
the three-month period. From the evaluation, it could be identified that the overall portfolio
value relatively increased during the three-month period and provided the return of 6.83%.
However, during the same period the ASX 200 only provided a return of 1.65%, which
mainly indicated the efficiency of the portfolio in generating high rate of returns from
investment (Au.finance.yahoo.com, 2018). During the three-month investment period the
overall portfolio was able to generate 6.83% return, which indicates the high possibility
Higher returns that could be generated from the portfolio.
5. Recommending any kind of modifications for the portfolio structure:
After evaluating the returns and the components of the portfolio it could be identified
that no further changes are needed for increasing the portfolio Returns. The evaluation of the
calculation relatively indicated the positive attributes that will be provided by the investment
scope from the created portfolio. Therefore, the portfolio will eventually provide higher rate
of returns due to the measures taken when segregating the different investments conducted in
Equity stocks, futures and shorting. The portfolio has outperformed the ASX index 200,
which a relatively indicates that there is adequate opportunity in obtaining a higher income
from investment.

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Reference and Bibliography:
Au.finance.yahoo.com. (2018). Au.finance.yahoo.com. Retrieved 8 June 2018, from
https://au.finance.yahoo.com/
Chaouch, M., Gannoun, A., De Peretti, C., & Trabelsi, A. (2015). Mean and median-based
nonparametric estimation of returns in mean-downside risk portfolio frontier.
Gray, P. (2014). Stock weighting and nontrading bias in estimated portfolio
returns. Accounting & Finance, 54(2), 467-503.
Johannes, M., Korteweg, A., & Polson, N. (2014). Sequential learning, predictability, and
optimal portfolio returns. The Journal of Finance, 69(2), 611-644.
Ling, D. C., Naranjo, A., & Scheick, B. (2018). There's No Place Like Home: Information
Asymmetries, Local Asset Concentration, and Portfolio Returns.
Misra, A. K., & Mohapatra, S. (2017). Does investment style effect portfolio returns: a study
on Indian markets. Global Business and Economics Review, 19(3), 339-355.