Investment and Portfolio Management Analysis - Desklib

This Investment and Portfolio Management Analysis for MAF707 Trimester 2, 2018, provides insights into stock selection criteria, equity investments, and more. The analysis includes a personal reflection of investments made in S & P 500 Index in the Australian stock exchange. The investment was conducted with an in-depth understanding of financial knowledge. The stocks were purchased in relatively lower prices compared to the prices at which they were sold. The S & P Index closing was at 6286 and currently it is at 6298. My portfolio has been capable of generating a return of 5.93% from above the comparison index that I had undertaken. Download now on Desklib.

Simulated Investment and Portfolio
Assessment 1
Trimester 2, 2018
STUDENT NAME:
STUDENT CODE:
SUBJECT NAME: Investment and Portfolio Management
SUBJECT CODE: MAF707
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ABSTRACT
Investment in the market requires making decisions prior to constructing a portfolio,
which can yield returns. The scope of the current analysis includes a personal reflection of
investments made in S & P 500 Index in Australian stock exchange. There has been investment
made into equities in the market only and debt investments have not been considered. The
reflection reveals detailed insights into the criteria’s for stock selection.
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Table of Contents
ABSTRACT....................................................................................................................................2
Table of Figures...............................................................................................................................3
INTRODUCTION...........................................................................................................................4
ANALYSIS......................................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCE LISTS.......................................................................................................................9
APPENDIX....................................................................................................................................10
Appendix: Trade Done..................................................................................................................10
Table of Figures
Figure 1: Investment Portfolio As off Date.................................................................................................5
Figure 2: Brief Review of Position..............................................................................................................5
Figure 3: S & P Performance.......................................................................................................................7
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INTRODUCTION
Undertaking investment in the stock market requires understanding of various parameters
of the equity determinants (Levišauskait, 2010). Managing a portfolio requires arriving at the
right balance between debt and equity investments, keeping in liquidity to ensure probability of
profits. In the current investment analysis an initial portfolio amount of $1,000,000.00 was
allotted, which was the sum total of buying power and available cash (Datu Bua, 2018). The
investment was conducted with in-depth understanding of financial knowledge as given below.
ANALYSIS
The investment was done taking into view aggressive market position in order that
maximum returns can be made. There have been no investments done in debt or debt related
securities and only equity investments have been considered (Reilly & Brown, 2011). Apart from
making investment into equity securities there has been cash balance left on which interest was
earned at the rate of 3%. I began trading at stocktrack.com on 20th July, 2018 and till date my
investment position has been reflected upon.
Figure 1: Investment Portfolio As off Date
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Figure 2: Brief Review of Position
The investment was undertaken in Australian Dollars Currency and benchmark for
comparing of stock returns was assumed to be S & P 500 Index. The index was used for
comparing returns from the Company against market average returns. I had purposely made
investment into well-known companies in the market to maintain constant liquid position. The
Companies in which I invested constitutes of;
1. Afterpay Holdings Ltd
2. ANZ Bank FPO
3. BHP BLT FPO
4. CABCHARGE FPO
5. CALTEX FPO
6. CWLTH BANK FPO
7. Evolution Mining Ltd
8. Experience Co Ltd
9. Flight Centre Ltd
10. Northern Star Resources Ltd
11. NRW Holdings Ltd
12. Propertylink Group
13. QANTAS FPO
14. RAMSAY FPO
15. TELSTRA FPO
16. The a2Milk Company Ltd
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17. WOOLWORTHS FPO
The basis for investment undertaken in this current study was primarily liquidity, post
which the Company’s individual revenue analysis, dividend payout, EPS earnings have been
analysed (DeFusco, McLeavey, Pinto, Anson & Runkle, 2015). The stocks were purchased in
relatively lower price compared to the prices at which they were sold. Identification of stocks
was primarily on past performance which they delivered in the equity market. The S & P Index
closing was at 6286 and currently it is at 6298. Meaning the index has given a total return of
0.19% from 20th July 2018 till date. My portfolio has been capable of generating a return of
5.93% from above the comparison index that I had undertaken. It means that my stock selection
had been effective and I have been successful in developing a profitable portfolio and will be
able to undertake such decisions in the future for the client as well.
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Figure 3: S & P Performance
The guidelines which have been followed by me while investing was to identify top
gainers and losers in the pat period in the market. I selected large capital stocks, which has stable
business objectives and have orders. As the mining companies which I have selected, gets
regular export orders from its clients. So, stock pickers while making their selection needs to not
only follow top gainers and losers but also look at the company vitals for making their
investments. This will allow them to gain substantial returns. However, I would like to add that
in certain investments I have acted impatiently and have sold stocks inspite of them making loses
for me. I need to stick to my patience so that in future I am able to sell my stocks at prices higher
compared to prices at which I have purchased them.
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After undertaking this exercise I felt that I should have also taken an analysis of revenue
statement and other financial statements for the companies. A brief analysis of financial
statements would have given me capabilities to undertake my investment in a detailed manner
and make more concrete decisions for them. I could have also identified some small capital
stocks and added to my portfolio to be able to generate abnormal returns for my portfolio.
However, this has been my first experience in the equity market and despite that I have been able
to make substantial returns on my investment. Moreover, I would like to add that I always kept
some amounts of cash as liquid so that in any case I see a stock capable of giving returns I could
invest in it. I have earned interests on my cash holding as well apart from the regular
investments. Such cash holding is necessary to allow me flexibility to undertake decisions
pertaining to varied investment alternative.
Looking back now I feel that some portions of my investment I could have done into debt
market as well. However, due to lack of detailed knowledge regarding debt market I had not
undertaken any risks regarding it. Debt markets are highly capable of generating above average
returns over a shorter time spans. But I need to know the ways in which debt market performs,
meaning I need to analyse rating of debt papers available for judging their credibility and
understanding their returns. In my future investment I have identified a few journals and books
from where I can learn regarding the ways to undertake debt related investments.
CONCLUSION
This scope of undertaking investment provided extreme excitement as well as pleasure.
Since the start of my college days I was always thrilled at the thought of making m y investment.
Through this endeavor I have been able to perform my wishes. This endeavor has enormous
learning experience for me as well as for my future. It will guide me to undertake more
investments in the future.
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REFERENCE LISTS
Datu Bua, M., 2018. Investment Analysis and Portfolio Management.
DeFusco, R.A., McLeavey, D.W., Pinto, J.E., Anson, M.J. and Runkle, D.E., 2015. Quantitative
investment analysis. John Wiley & Sons.
Levišauskait, K., 2010. Investment analysis and portfolio management. Leonardo da Vinci
programme project.
Reilly, F.K. and Brown, K.C., 2011. Investment analysis and portfolio management. Cengage
Learning.
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APPENDIX
Appendix: Trade Done
Trade
Date
Transacti
on Type Security
Symb
ol
Company
Name QTY
PRIC
E
Com
m. Amount
Curr./
Exch
7/22/20
18
Stop -
Buy
EQUITI
ES QAN QANTAS
FPO 1000 $6.68 -10 -6,680.00 AUD /
1.35
7/22/20
18
Limit -
Buy
EQUITI
ES QAN QANTAS
FPO 3500 $6.68 -10 -
23,380.00
AUD /
1.35
7/22/20
18
Market -
Buy
EQUITI
ES QAN QANTAS
FPO 5000 $6.68 -10 -
33,400.00
AUD /
1.35
7/22/20
18
Market -
Buy
EQUITI
ES ANZ ANZ BANK
FPO 7500 $29.1
4 -10
-
218,550.0
0
AUD /
1.35
7/22/20
18
Market -
Buy
EQUITI
ES A2M The a2 Milk
Company Ltd 2000 $9.63 -10 -
19,260.00
AUD /
1.35
7/22/20
18
Market -
Buy
EQUITI
ES CBA CWLTH
BANK FPO 2000 $75.1
8 -10
-
150,360.0
0
AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES NWH NRW
Holdings Ltd
-
50000 $1.76 -10 88,000.00 AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES FLT Flight Centre
Ltd -1000 $69.9
8 -10 69,980.00 AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES ANZ ANZ BANK
FPO -5000 $30.5
7 -10 152,850.0
0
AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES RHC RAMSAY
FPO -2000 $58.0
7 -10 116,140.0
0
AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES FLT Flight Centre
Ltd -1500 $67.8
3 -10 101,745.0
0
AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES AFY Afterpay
Holdings Ltd -2000 $16.0
0 -10 32,000.00 AUD /
1.35
7/23/20
18
Limit -
Sell
EQUITI
ES A2M The a2 Milk
Company Ltd -1000 $10.0
0 -10 10,000.00 AUD /
1.35
7/23/20
18 Stop - Sell EQUITI
ES AFY Afterpay
Holdings Ltd -2000 $15.0
0 -10 30,000.00 AUD /
1.35
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7/23/20
18
Market -
Buy
EQUITI
ES EXP Experience Co
Ltd
10000
0 $0.58 -10 -
58,000.00
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES NWH NRW
Holdings Ltd
10000
0 $1.64 -10
-
163,500.0
0
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES RHC RAMSAY
FPO 3000 $56.9
0 -10
-
170,700.0
0
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES PLG Propertylink
Group 5000 $1.06 -10 -5,300.00 AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES CAB CABCHARG
E FPO 10000 $2.35 -10 -
23,500.00
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES AFY Afterpay
Holdings Ltd 5000 $15.5
3 -10 -
77,650.00
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES FLT Flight Centre
Ltd 1500 $66.8
1 -10
-
100,215.0
0
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES AFY Afterpay
Holdings Ltd 10000 $15.5
0 -10
-
155,000.0
0
AUD /
1.35
7/23/20
18
Market -
Buy
EQUITI
ES FLT Flight Centre
Ltd 2000 $66.8
1 -10
-
133,620.0
0
AUD /
1.35
7/23/20
18
Market -
Sell
EQUITI
ES QAN QANTAS
FPO -2000 $6.67 -10 13,340.00 AUD /
1.35
7/24/20
18 Stop - Sell EQUITI
ES CBA CWLTH
BANK FPO -1500 $74.6
9 -10 112,035.0
0
AUD /
1.35
7/24/20
18
Limit -
Sell
EQUITI
ES CAB CABCHARG
E FPO
-
10000 $2.42 -10 24,200.00 AUD /
1.35
7/24/20
18
Market -
Buy
EQUITI
ES EXP Experience Co
Ltd
10000
0 $0.58 -10 -
58,000.00
AUD /
1.35
7/25/20
18
Limit -
Sell
EQUITI
ES NST Northern Star
Resources Ltd -5000 $7.30 -10 36,500.00 AUD /
1.35
7/25/20
18
Market -
Buy
EQUITI
ES TLS TELSTRA
FPO 5000 $2.74 -10 -
13,700.00
AUD /
1.35
7/25/20
18
Market -
Buy
EQUITI
ES A2M The a2 Milk
Company Ltd 20000 $9.99 -10
-
199,800.0
0
AUD /
1.35
7/25/20
18
Market -
Buy
EQUITI
ES WOW WOOLWORT
HS FPO 5000 $30.4
1 -10
-
152,050.0
0
AUD /
1.35
7/25/20
18
Market -
Buy
EQUITI
ES NST Northern Star
Resources Ltd 10000 $7.26 -10 -
72,600.00
AUD /
1.35
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7/25/20
18
Market -
Buy
EQUITI
ES BHP BHP BLT
FPO 5000 $33.6
3 -10
-
168,150.0
0
AUD /
1.35
7/25/20
18
Limit -
Buy
EQUITI
ES CTX CALTEX FPO 2500 $31.3
2 -10 -
78,300.00
AUD /
1.35
7/25/20
18
Market -
Buy
EQUITI
ES CTX CALTEX FPO 5000 $31.3
2 -10
-
156,600.0
0
AUD /
1.35
7/25/20
18
Market -
Sell
EQUITI
ES ANZ ANZ BANK
FPO -2500 $28.8
5 -10 72,125.00 AUD /
1.35
7/25/20
18
Market -
Sell
EQUITI
ES NWH NRW
Holdings Ltd
-
50000 $1.65 -10 82,250.00 AUD /
1.35
7/25/20
18
Market -
Sell
EQUITI
ES AFY Afterpay
Holdings Ltd -5000 $14.5
9 -10 72,950.00 AUD /
1.35
7/25/20
18
Market -
Sell
EQUITI
ES CBA CWLTH
BANK FPO -500 $74.5
2 -10 37,260.00 AUD /
1.35
7/25/20
18
Market -
Sell
EQUITI
ES QAN QANTAS
FPO -7500 $6.61 -10 49,575.00 AUD /
1.35
7/25/20
18
Limit -
Sell
EQUITI
ES A2M The a2 Milk
Company Ltd -7500 $10.0
0 -10 75,000.00 AUD /
1.35
7/25/20
18
Market -
Buy
EQUITI
ES A2M The a2 Milk
Company Ltd 10000 $9.97 -10 -
99,700.00
AUD /
1.35
7/26/20
18
Limit -
Sell
EQUITI
ES WOW WOOLWORT
HS FPO -3000 $31.6
9 -10 95,070.00 AUD /
1.35
7/30/20
18
Limit -
Sell
EQUITI
ES ANZ ANZ BANK
FPO -8000 $31.0
0 -10 248,000.0
0
AUD /
1.35
7/30/20
18
Market -
Buy
EQUITI
ES ANZ ANZ BANK
FPO 8000 $28.0
0 -10
-
224,000.0
0
AUD /
1.35
7/30/20
18
Limit -
Sell
EQUITI
ES EVN Evolution
Mining Ltd
-
80000 $3.08 -10 246,400.0
0
AUD /
1.35
7/30/20
18
Market -
Buy
EQUITI
ES EVN Evolution
Mining Ltd 80000 $2.64 -10
-
211,200.0
0
AUD /
1.35
7/31/20
18 Stop - Sell EQUITI
ES A2M The a2 Milk
Company Ltd -1000 $9.43 -10 9,430.00 AUD /
1.35
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8/9/201
8
Market -
Sell
EQUITI
ES TLS TELSTRA
FPO -5000 $2.82 -10 14,100.00 AUD /
1.35
8/9/201
8
Market -
Sell
EQUITI
ES NST Northern Star
Resources Ltd -5000 $7.54 -10 37,700.00 AUD /
1.35
8/9/201
8
Market -
Sell
EQUITI
ES BHP BHP BLT
FPO -5000 $34.0
7 -10 170,350.0
0
AUD /
1.35
8/9/201
8
Market -
Sell
EQUITI
ES CTX CALTEX FPO -7500 $33.4
8 -10 251,100.0
0
AUD /
1.35
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