Investment Analysis and Portfolio Management Report

This report evaluates investment procedures for young families and retirees, focusing on a $1.5 million investment. It explores investment opportunities for 35-year-old and 65-year-old investors, analyzing portfolios with conservative growth, capital appreciation, and equity income. The research includes idea generation, researching investment options, assessing portfolio needs, and portfolio management. The report examines aggressive growth equities, long-term growth equities, foreign equities, foreign bonds, and income securities. It provides detailed analyses for both age groups, offering specific portfolio allocations and recommendations. The report aims to help investors generate higher income and achieve their financial goals, offering insights into different fund types and their associated risks and returns.

Running head: INVESTMENT MANAGEMENT
INVESTMENT MANAGEMENT
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................3
Research...........................................................................................................................................3
Generation of idea for investment...............................................................................................4
Researching different options of investment...............................................................................4
Assessing the portfolio that is required for investment...............................................................5
Conducting management of portfolio..........................................................................................5
Aggressive growth equities..........................................................................................................6
Long term growth equities...........................................................................................................6
Growth as well as income equities..............................................................................................7
Foreign equities...........................................................................................................................7
Foreign Bond...............................................................................................................................7
Income securities.........................................................................................................................8
Analysis...........................................................................................................................................8
Analysis for the 35 year old professional....................................................................................8
Analysis for the 65-year-old retiree...........................................................................................10
Recommendation and Conclusion.................................................................................................11
Reference.......................................................................................................................................13

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Introduction
The report mainly aims to evaluate the investment procedure of young families as well as
retirees. Ample research has been conducted in this report for recognizing the opportunities of
investment that could be required by 65- year old and 35- year old investor. The scope of
investment of $1.5 million is required to be assessed for these two investors that could facilitate
to generate higher revenue from the investment. In addition, the report also assesses diverse
investment portfolios that have conservative growth, capital appreciation, growth of income and
equity income. These pertinent measures will be utilized for identifying the best possible option
of investment for the companies that might produce higher revenue from the investment (Bodie,
Kane and Marcus 2014). Moreover, two portfolios are basically prepared in this report that
could aid both the 35 –year old and 65- year old investors for generating higher income from the
investment. Furthermore, sufficient recommendation for these investors portfolio is also
conducted in this report, which could also facilitate them to create wealth as well as support in
their financial obligations.
Research
The research is basically conducted on the process of investment and different kinds of
funds that could be utilized in forming sufficient portfolio of the companies. In addition, the
assessment of the investment procedure could also facilitate in structuring the portfolio for these
two clients, which might aid in supporting their future expenditure. There are various levels of
the investment procedure that is required to be conducted before investment in order to identify

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relevant procedure for producing higher return. In addition, evaluation of different kinds of funds
has also been conducted for understanding the needs of these investors.
Pertinent identification as well as the investment procedure is also stated as under:
Generation of idea for investment
Idea generation refers to the starting procedure of investment in which the investment
need of these investors is assessed for drafting the correct portfolio. Furthermore, the
organization should conduct adequate qualitative as well as quantitative screening, which could
help to identify opportunities of investment. Additionally, the screening procedure is also helpful
to detect risk as well as return, which might be provided from the investment (Al-Hassan et al.
2013). Pertinent findings concerning various levels of return as well as risk generated from stock
should be conducted by the organization, which in turn might facilitate to generate higher
revenue from the investment. It has been stated by () that assessment of risk as well as return also
permits the investors to identify opportunities of investment and make higher revenue.
Researching different options of investment
After identifying various extent of the investment opportunity, the stocks selected could
be taken into account in order to generate higher level of return. In addition, identification of
balance sheet, strength of management, structure of industry and ESG revenue is usually
conducted by the organization (van Duuren, Plantinga and Scholtens 2016). Furthermore,
applicable recognition of weakness as well as strength in the investment scope could also help to
draft ample portfolio in order to support investment requirements to the investors. The evaluation
of technical as well as fundamental analysis should also be conducted for detecting return as well
as risk that is involved in the investment stock operations. In this perspective, it has been opined

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by Hull (2014) that the investors could identify various stocks through research options, which
have less risk and hence enhance their return.
Assessing the portfolio that is required for investment
The third process of investment is basically the portfolio creation that is based on the
needs of the investors. In addition, this portfolio creation directly helps to detect risk as well as
return, which might be generated from the investment. However, through this process the
investors could assess the ability of the portfolio in order to match their return as well as risk
level. The evaluation that has been conducted on the portfolio could also help to detect the
investment style that includes equity income, income growth, conservative growth and
appreciation of capital (HA Davis and Lleo 2015). In addition, proper identification of this
investment style could also aid to select proper portfolio for these two investors and thereby
support their investment need.
Conducting management of portfolio
The last phase of investment procedure is the portfolio management that helps to assess
the portfolio performance according to the needs of investors. Furthermore, this portfolio
management in turn could ultimately aid to detect the nature of portfolio in order to support the
investment needs of the investors. Moreover, the detection of target as well as return could also
be recognized in the procedure, where the portfolio managers have the ability to understand the
financial needs of the investors for managing their portfolio (Chandra 2017). This phase is
basically the monitoring process, which is required to be conducted by the investors in order to
maintain extent of probable return from the investment.

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Different kinds of funds that is available for investment while assessing returns as well as risk
from investment are portrayed as under-
Aggressive growth equities
Aggressive growth equities refer to stocks that have higher risk as well as return from the
investment. These kinds of stocks are mainly affected by the capital market volatility and this in
turn also aids to enhance the returns of the investors. In addition, these growth equities basically
comprises of the stocks that are mainly focused on giving higher returns to the investors. The
utilization of both fundamental as well as technical indicator also permits the investors to detect
those stocks that have high growth rate in the market on annual basis. This aggressive growth
equity has been basically used by the investors for increasing the return level in their portfolio. It
has been opined by Damodaran (2012) that, the investors also uses these stock for increasing
their return level that might be generated from the portfolio investment.
Long term growth equities
The second kind of the investment fund is the long term growth equities that are utilized
by the investors for growing their return as well as investment capital. This in turn also permits
the investors in generating returns for longer term from their investment (McGuire, Omer and
Wilde 2013). In addition, this kind of investment basically has less risk as well as stable return
since the investor’s aims to increase their wealth from this investment. Moreover, the financial
institutions and the fundamental investors usually use this kind of equity funding in order to
maximize profitability level. On the other hand, the conservative investors might utilize this fund
in order to increase their profit margin and generate growth.

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Growth as well as income equities
The income as well as growth equity funds generate higher returns from the investment,
which in turn could aid to generate adequate profitability level from their investment. This fund
basically aims to increase their portfolio value as well as produce dividend from the investment.
This kind of stock also generates good reward from the investment since it is directly influenced
from the capital market. In addition, the investment banker also utilizes this fund as they wanted
to raise their investment in capital and acquire sufficient dividends for paying their investors.
The stocks that have huge growth prospects as well as dividend payments has been selected for
this kind of investment in which the risk is moderately high. It has been mentioned by () that, the
investors that have huge prospects of income and growth mainly requires to use risky stocks for
supporting their investment need.
Foreign equities
The investments in foreign equity directly permit the investors to raise the returns owing
to rise in growth rate in the emerging markets. Investments in Malaysia, Indonesia and other
emerging nations could relatively permit the foreign investors in generating larger revenue from
investment (Qian and Steiner 2014). These investments in the foreign equities are basically
conducted on the organization that have higher potential to generate returns and is thus analyzed
by assessing its performance. On the other hand, the rules of investment in the domestic market
are eventually different, which in turn limits the investors to take benefit from unpredictable
capital market of the emerging markets.
Foreign Bond
Foreign bonds could be used by the investors in order to increase relevant returns since it
gives fixed payment as well as coupon payment for specific period of time. In addition, the

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utilization of foreign bonds is enormously high because the conservative investors basically
utilize options of investment in their portfolio (Batten, Hogan and Szilagyi 2012). The
developing nations usually have high interest rate payment on the bonds since they require FDI
( foreign direct investment). However, this might relatively permit their investors in generating
high income in their bonds as compared to the bond payments that is provided in advanced
nations. The conservative investors that focus on higher returns with less risk have the ability to
increase the returns from their portfolio.
Income securities
Income securities are basically recognized as one type of mutual funds and investment
criteria that is conducted by the investors in order to generate higher returns. Moreover, selection
of applicable securities as well as mutual funds is essential for these investors since they
provides conservative as well as high risk investment opportunities. Furthermore, conservative as
well as aggressive investors tend to invest in these income securities since it gives adequate
opportunities of investment. Return as well as risk profile of these income securities are
basically connected with huge scope of investment that is used by the investors. Furthermore,
Gross, W.H. and Toloui (2012) portrays that the investors usually selects mutual funds after
assessing the total returns from the specific security over particular time of existence.
Analysis
Analysis for the 35 year old professional
For 35 year old professional
Particulars
Percentag
e % Amount Securities
Share
returns
Yield
%
Investment fund 100%
$
1,500,000

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Long-term growth
equities 10%
$
150,000 Goodman Group 18.83%
3.31
%
Growth & Income
Equities 40%
$
600,000 CSL Limited 30.16%
1.01
%
International
Equities 8%
$
120,000
Bank Rakyat Indonesia
(Persero) Tbk PT 65.75%
2.91
%
International income 8%
$
120,000 GL07/23 4.39%
4.22
%
Income Securities 5%
$
75,000 GSBI21 5.75%
2.24
%
Aggressive growth
equities 29%
$
435,000 Computershare Limited 32.02%
1.81
%
The above table that has been constructed depicts the total returns that could be derived
from the portfolio that has been created for the 35-year-old professional. The portfolio that has
been constructed constitute of the stocks that facilitate the essential features like the higher
income capacity and higher growth. This has been helpful in deriving the relevant outcomes. In
addition to it, the portfolio facilitates the providence of higher returns from the particular
investments as the stocks that yield higher returns have been utilized for drafting the overall
portfolio. The companies that have been utilized for drafting the portfolio are of the names
Goodman Group and CSL Limited. The companies have been used for the purpose of generating
the desired revenue from the investments. This could be generated from the dividend yield and
stock return. The evaluation of these stocks leads to the accelerated rate of progress that
efficiently allows the investors to create wealth.
The internal equities and the securities that have been used for the purpose of drafting the
portfolio have been utilized for developing an investment stream so that the returns could be
efficiently improved from the investors. Moreover, the international equities facilitate the
providence of higher market returns and the yields from the dividends in comparison to the
securities that have been listed in the portfolio. It is evident from the table that the utilization of

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an aggressive growth equity has also been used in drafting the portfolio in order to efficiently
generate higher amounts of return both from the dividend yield and stocks. This has been one of
the most crucial criteria in relation to investment for a 35-year-old professional, who intends to
increase the amount of returns from the portfolio. This evidently will result in improving the
returns that could have been provided by the companies on a long-term basis. In case of the
international equities the growth perspective and the aggressiveness of the growth equity have
been subjectively high. This permits the investors for creating adequate wealth for supporting the
financial obligations incurred by them.
Analysis for the 65-year-old retiree
For 65 year old retiree
Particulars
Percentag
e % Amount Securities
Share
returns
Yield
%
Investment fund 100%
$
1,500,000
Long-term growth
equities 25%
$
375,000 Goodman Group 18.83%
3.31
%
Growth & Income
Equities 7%
$
105,000 CSL Limited 30.16%
1.01
%
International
Equities 8%
$
120,000
Bank Rakyat Indonesia
(Persero) Tbk PT 65.75%
2.91
%
International income 32%
$
480,000 GL07/23 4.39%
4.22
%
Income Securities 28%
$
420,000 GSBI21 5.75%
2.24
%
The portfolio that had been created for the 65-year-old retiree majorly constitutes of the
bonds and stocks that reflect a higher degree of the growth rate. The 65-year-old investor being
orthodox and conservative in nature eventually gradually could permit the international income
and the income securities to be the weighted investments that have been included in the portfolio
and is of the highest value. The portfolio has been strictly focused on the creation of wealth and

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reduces the amounts of risks in relation to the investments. This could result in the generation of
a constant source of income via the portfolio. The portfolio that has been drafted strictly
concentrates on the investments in relation to the low risks, where income equities and growth
holds up to a 5% of the portfolio value. This has been conducted mainly in order to ensure the
constant flow of returns that will be received by the 65 year-old-retiree post his retirement.
The portfolio has been further focused on the bonds and other equities with high growth
would result in the reduction of the actual risk associated with the investment and ensure the
providence of the constant returns. The utilization of the international income and the income
securities could result in the old retiree receiving the payments in relation to the annual coupons
by which he can support the financial obligations incurred by him. Moreover, the portfolio has
been drafted by keeping in mind the growth equities that have been incurred on a long term
basis. This evidently increases the value of the portfolio and ensures obtaining higher returns
from the investment. It should be noted here that the portfolio has been created for a conservative
investor who is against the accumulation of a high degree of risk in the portfolio.
Recommendation and Conclusion
The complete evaluation process that has been conducted is majorly focused on the
providence of enough opportunities in relation to the investment for a 35 year old professional
and 65 year old retiree. The portfolio that has been created and drafted reflect the requirements in
terms of the investments and expenditures that have been incurred on a daily basis. The
particular investment process and the categories of funds that have been required for the creation
of the portfolios have been mentioned in this particular report. This has adequately resulted in the
proper drafting of the portfolio for the investors. The preparation of the portfolio is strictly

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focused on the criteria of investment that has been provided by each of the investors in which the
portfolio weights have been properly adjusted to support the requirements of the returns. The
portfolio that has been created in the particular report properly acknowledges all the
requirements of the investors so that the investors can meet their financial obligations. The 35-
year-old-professional has mainly focused on the accumulation of greater amounts of return by
the accumulation of risks in his portfolio. However, the 65-year-old-retiree focuses on the
constant flow of income as returns from the investments with lower amounts of accumulated
risks.

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Reference
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Al-Hassan, A., Papaioannou, M.M.G., Skancke, M. and Sung, C.C., 2013. Sovereign wealth
funds: Aspects of governance structures and investment management(No. 13-231). International
Monetary Fund.
van Duuren, E., Plantinga, A. and Scholtens, B., 2016. ESG integration and the investment
management process: fundamental investing reinvented. Journal of Business Ethics, 138(3),
pp.525-533.
HA Davis, M. and Lleo, S., 2015. Risk-Sensitive Investment Management.
Chandra, P., 2017. Investment analysis and portfolio management. McGraw-Hill Education.
Brodsky, W. and Speth, W., Chicago Board Options Exchange, 2012. Method and system for
creating and trading derivative investment instruments based on an index of investment
management companies. U.S. Patent 8,204,816.
Batten, J.A., Hogan, W.P. and Szilagyi, P.G., 2012. 12. Foreign bond markets and financial
market development: international perspectives. Implications of the global financial crisis for
financial reform and regulation in Asia, p.248.
Qian, X. and Steiner, A., 2014. International reserves and the composition of foreign equity
investment. Review of International Economics, 22(2), pp.379-409.

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McGuire, S.T., Omer, T.C. and Wilde, J.H., 2013. Investment opportunity sets, operating
uncertainty, and capital market pressure: Determinants of investments in tax shelter
activities?. The Journal of the American Taxation Association, 36(1), pp.1-26.
Hull, J.C., 2014. The evaluation of risk in business investment. Elsevier.
Damodaran, A., 2012. Investment valuation: Tools and techniques for determining the value of
any asset (Vol. 666). John Wiley & Sons.
Gross, W.H. and Toloui, R., Pacific Investment Management Company LLC, 2012. Fixed
income securities index. U.S. Patent 8,306,892.