Mr. John Investment Analysis Project 2022

Running head: INVESTMENT ANALYSIS PROJECT
Investment Analysis Project
Name of the Student:
Name of the University:
Author’s Note:

INVESTMENT ANALYSIS PROJECT1
Table of Contents
Portfolio Overview..........................................................................................................................2
Profile based Investment Strategy...................................................................................................3
Investment Portfolio Statement.......................................................................................................4
Comprehensive Analysis.................................................................................................................6
Government Bond........................................................................................................................6
Irland 2045 Bond.....................................................................................................................6
IrlandEO-Treasury Bonds 2019(50)........................................................................................8
Corporate Bonds..........................................................................................................................9
Current and Future Market Scenario.........................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................14

INVESTMENT ANALYSIS PROJECT2
Portfolio Overview
The portfolio analysis has been well done for the Mr John who is currently at the age of
65 and would be retiring soon. The portfolio for Mr John has been well prepared based in the
current market conditions and the marker factors which would be well affecting the performance
of the investment. Investment key factors like investment objectives, goals, risk and return
objectives would be some of the key basis upon which the investment would be decided and the
assets would be allocated accordingly for the client. The asset would be comprising of the three
key assets and that would be particularly in the field of the bonds, assets and cash & cash
equivalents. The amount that would be well invested into the wide range of assets would be
around €1,000,000 and of which we do expect that the majority of the amount would be invested
into bonds. Investment into bonds would be done accordingly in the government and corporate
bonds depending upon the investment goals and objective. From a proportion and weightage
basis it is well analysed that around 70% of the amount would be invested into corporate and
government bonds, 15% in Equity Stock Market and another 15% would be kept as cash and
cash equivalents for the client. The list of stocks and bonds that would be well selected for the
purpose of investment would be from Ireland. Analysis of assets such as stocks and bonds would
be well done after well analysing the historical performance of the assets and future performance
of the assets class. Key economic factors like interest rate, inflation rate and the market growth
rates are some of the key factors which have been well considered for the purpose of analysis
and would be well considered for the analysis purpose for the client. Now, based on the client
profile, risk and return estimates we well suggest that the client takes a low amount of risk and
investment allocation would be done accordingly for the purpose of investment. So a major
portion that is 15% of amount would be well kept in cash so that in these hard investing time
“cash acts as a king” for the client. The proposed asset allocation for Mr John our client would
be as follows:
Investment Portfolio
Asset Class
Weightage
(%)
Amount
(€)
Bonds 70%
€
700,000
Equity 15% €

INVESTMENT ANALYSIS PROJECT3
150,000
Cash & Cash
Equivalent 15%
€
150,000
Total 100%
€
1,000,000
Profile based Investment Strategy
The profile of the client for Mr John, has been well done by taking the return objectives,
risk constraints, time horizon and liquidity constraints for Mr John. The current age for Mr John
is around 65, and he is currently having more approach towards safer investment. Investment in
bonds would be considered for Mr John, and he would be well investing based on a time horizon
for 10-Years in which he expects to allocate the amount in a well-diversified manner. Given the
current situation that is Outbreak of pandemic disease COVID-19 has affected majorly all sectors
of the economies and the global economy has moved towards recession. Major actions are being
taken at the government side by quantitative easing that is by injecting money into the money.
On the other hand, the Central Banks have also taken measures (Ireland Stock Market (ISEQ) |
1989-2020 Data | 2021-2022 Forecast | Quote | Chart 2020). Now these key set of factors needs
to be well aligned with that of the client so that a right set of strategy is built up. Considering the
fact bond investment would be given a prior importance a set of bonds have been well selected
for the client. There are two government bonds which are Irland 2045 Bond and Irland 19/50
Bond selected. On the other hand, the corporate bond that has been well selected for the purpose
of analysis is the UNICR.BK IR. 16/23 MTN Bond (Ireland Government Bond 10Y | 1985-2020
Data | 2021-2022 Forecast | Quote | Chart 2020). The four key equity stocks in which our
investment would be done will be CRH PLC, Grafton Group PLC, Johnson Controls
International PLC and Ryanair Holdings PLC. Further the investment in the cash and cash
equivalent is estimated to be well kept at the prevailing risk free rate of about 1.4% and which
would be safest bet given the current economic and social factors. Now since, the client would be
well making his living out from the investment we got to consider asset classes and instruments
which not only generates a steady income, but also preserves the invested capital (Ireland
Government Bonds - Investing.com 2020). Now well considering the given facts and
considerations about the asset class the proportionate weight that would be placed in bond will
be 70%, Cash and Equity 15% respectively. Now these set of investment has been well designed