Portfolio Creation for MS. B

The assignment creates a portfolio for MS. B consisting of shares, REIT, and real-estate investments. It evaluates the financial performance of various investment options, including P-REIT, F-REIT, commercial office, Crystal World Ltd, and other companies. The portfolio aims to nullify the impact of inflation rates and protect investment capital and returns.

Running head: INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Investment Analysis and Portfolio Management
Name of the Student:
Name of the University:
Authors Note:

INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
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Table of Contents
Introduction:...............................................................................................................................2
1. Identifying opportunities for MS. B:......................................................................................2
2. Recommendations that is provided to MS. B:.......................................................................3
Conclusion:................................................................................................................................6
Reference and Bibliography:......................................................................................................8

INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
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Introduction:
The assessment mainly aims in formulating adequate portfolio, which could help in
producing return to MS B, who is ultra-high net worth individual investing in Singapore. In
addition, the portfolio could help in supporting the financial requirement of MS B, where it
might generate high rate of return from investment. The portfolio mainly focuses on
developing high return from investment, which reduces the negative impact of inflation on
investment capital.
1. Identifying opportunities for MS. B:
The above figure mainly depicts the investment opportunity, which is presented to
MS B, who intends in investing in property market of Singapore. In addition, financial
performance of the company and REIT is mainly identified from the above values. Moreover,
from the valuation investment opportunity in stocks and REIT can be detected, which might
be included in the portfolio. This relevantly indicates that the detection of financial
performance could help in selecting the adequate investment opportunity to improve portfolio
returns (Baum & Crosby, 2014). The use of dividend yield, price earnings ratio, net book
value is mainly used in identifying investment opportunity. Furthermore, the financial
performance of REIT and shares is used in identifying the investment opportunities, which
could be used in formulating the portfolio.

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The above figure helps in depicting the overall real property, which could be used in
the portfolio formulation process. This helps in detecting the minimum and maximum
returns, which could be provided from investment. The use of mortgage can also be
conducted to accommodate real property in portfolio, where 2.5% of the mortgage rate will
be used to increase return from investment (Kim et al., 2015). This accommodation of real
property could allow investors to gain from annual rent and rising property price in
Singapore. Both the investment option has adequately, as prices and demand for commercial
and residential property has exponentially increased in Singapore.
2. Recommendations that is provided to MS. B:
Particulars Per sqft Price per
sqft
Amount Return
Commercial Office 1200 SGD
2,800
SGD
3,360,000
SGD
114,000
Residential Condominium 1200 2800 SGD
3,360,000
SGD
33,600
Mortgage loan SGD
(1,720,000)
SGD
(43,000)
Total SGD
5,000,000
SGD
104,600
Return 2.09%

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Inflation rate 3.00%
Actual return from
investment %
-0.91%
The above table mainly represents the overall investment, which needs to be
conducted in property market for generating the required rate of return for MS B. However,
the evaluation indicates that retune from the real estate investment is not adequate, where the
investment would not be conducted by the investor. The financial performance of the
portfolio is not adequate, where inflation present in Singapore nullifies the gains, which is
been made from property rent. The utilisation of mortgage method could help in
accommodating both the property, where returns does not compensate the rising inflation.
Hence investment solely in the property market is not adequate, where return does not
compensate the loss from inflation (Haila, 2015).
Particulars Share price No of
Shares
Amount Return
Crystal World Ltd 12.8 4
9,888
SGD
638,566
SGD
9,578.50
Jade Inter- National Ltd 1.8 2,42
3,019
SGD
4,361,433
SGD
152,650.17
Total SGD
5,000,000
SGD
162,229
Return from investment 3.24%
Inflation rate 3.00%
Actual return from 0.24%

INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
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investment %
Actual return from
investment amount
SGD
12,229
The evaluation of share in the property market mainly helps in generating adequate
return, when both the investment option is utilised. The investment in Crystal World Ltd and
Jade Inter-National Ltd could help in generating adequate return of 3.24% in dividend over
the period of one year. This could allow MS. B to compensate for the rinsing inflation in
Singapore and generate adequate returns. Moreover, the actual return that will be generate by
the investment is 0.24% after deducting the inflation rate, which amount to SGD 12,229.
However, the investment in shares would result in high risk, as both companies have high
gearing ratio (Hutchinson, 2015). This indicates that debt in the companies are high, which
increases investment risk for MS. B.
Particulars Share price No of
Shares
Amount Return
F-REIT 2.9 10
0,000
SGD
290,000
SGD
13,050
P-REIT 1.5 90
0,000
SGD
1,350,000
SGD
91,125
Total Investment SGD
5,000,000
SGD
104,175
Return from investment 2.08%
Inflation rate 3.00%
Actual return from -0.92%

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investment %
Actual return from
investment amount
SGD
(45,825)
The last investment scope is presented in REIT, which could allow MS. B to increase
the level of returns from investment. In addition, the investment in REIT is also risky, as
gearing ratio of the investment is relatively high for both P-REIT and F-REIT. Moreover, the
investment in REIT would portray a loss for MS. B, as actual return from investment is at the
levels of -0.92% after deducting the inflation rate. Therefore, inflation in Singapore would
nullify the gains, which will be presented from the investment in REIT. Therefore,
investment solely in REIT would result I loss for MS. B and could reduce the valuation of
investment capital (Lee et al., 2017).
Hence, after the evaluation of all the three investment criteria it could be assumed that
relevant portfolio comprising of REIT, shares and real-estate could be drafted for MS B,
which might help in nullifying the negative impact of inflation. This portfolio could allow
MS. B to increase the relevant returns from investment and tap into the rising property market
of Singapore. The concentration of the portfolio needs to the conducted-on shares, as it
provides the highest return and has low debt (Newell et al., 2015). Therefore, investment in
commercial office, Crystal World Ltd and F-REIT could allow MS. B to accommodate low
risk in her portfolio and generate adequate return from investment.
Conclusion:
The above created portfolio could allow MS B to tap into the rising returns, which is
been provided by the property market of Singapore. In addition, the financial performance of
the REIT and companies is being evaluated to formulate the portfolio, which might help in

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generating high-end profits from investment. Moreover, the detection of financial
performance helps in pinpointing the investment opportunity, which could be listed in the
portfolio. The drafted portfolio could nullify the impact of inflation rate and protect the
investment capital and returns.