Report On Portfolio Analysis & Portfolio Theories
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Added on 2020-02-05
Report On Portfolio Analysis & Portfolio Theories
Added on 2020-02-05
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INVESTMENT AND FUNDMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Main body........................................................................................................................................3Explanation on the performance statement received by Steve Quinn and Peter Walker............3Comparison of the performance of the portfolio and difficulties in measuring same.................6Analysis of content of portfolio in terms of diversification and explanation on theory andpractice of diversification and its relation to risk as well as techniques to optimize the riskreturn relationship in investment portfolios.................................................................................74 Explanation on features and attributes of alternative investment.............................................8Quality of services provided to the Steve and Peter and improvents they must demand fromadvisors......................................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONCorporate finance is the vast field that encompass lots of things. In the current reportportfolio are evaluated in terms of their performance. Percentage return that is earned on eachsecurity is computed and same is used to evaluate the performance of the portfolio. In the middlepart of the report, difficulty that one face in measuring performance of the portfolio is identifiedand probable solution of same is identified. At end of the report, portfolio theories are explainedin terms of diversification. Along with this, features and attributes of investment alternatives arealso explained in the report. Main bodyExplanation on the performance statement received by Steve Quinn and Peter WalkerTable 1Steve Quinn return earning on individual securitiesInvestmentAmountMarket ValueatAverage BetaInvested31/12/16££Blackmore BondPLC100,000117,20017%1.6Artemis IncomeFund100,000107,1007%0.8UK GovernmentBonds100,00094,915-5%N/ACash200,000214,3007%N/ATotal500,000533,5157%Less:Fees & Charges5,335Current Value ofPortfolio528,180Table 2Peter Walker percentage return on portfolioInvestmentAmountMarket ValueatPercentagereturnAverage Beta
Invested31/12/16££Funding Circle150,000157,3505%0.7HL Select UKShares100,000108,1308%0.8Baring StrategicBond200,000193,720-3%N/ACash50,00052,5005%N/ATotal500,000511,7002%Less:Fees & Charges5,117Current Value ofPortfolio506,583Table 3Portfolio performance of Steve Quinn%Portfolio Over / (Under) Performance4.24Made up of:Asset Allocation0.85Sector Allocation3.39Security SelectionNot ApplicableExcess Return on BondsNegligibleTable 4Portfolio performance of Peter Walker%Portfolio Over / (Under) Performance(0.12)Made up of:Asset Allocation(0.31)Sector Allocation1.5Security SelectionNot ApplicableExcess Return on Bonds(1.31)Results indicate that in the portfolio of the Steve Quinn portfolio return is 4.24% and same forthe Peter Walker is -0.12%. Results are clearly indicating that high amount of return is earned inthe portfolio of the mentioned person relative to other one. Minor difference exist in the portfolioof both entities. In the portfolio of Steve Quinn basically securities are bond and mutual funds.On other hand, in case of Peter Walker there is shares of single company and junk bonds which
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