Investment Analysis and Portfolio Management Report - Finance

This report analyzes investment strategies and portfolio management for Mr. W, who seeks to improve his investment returns to support his family. The assignment examines two investment proposals: one from Ms. Shelly, offering quarterly returns, and another from Mr. Trevor, suggesting investment in a GNB portfolio. The report recommends allocating SGD 1,300,000 to the GNB portfolio, diversified across local and foreign stocks, cash, and bonds, and SGD 500,000 to Ms. Shelly's proposal. The analysis includes potential outcomes, referencing relevant literature, and providing appendices with detailed financial projections. The recommendations aim to generate higher revenue and mitigate risks, supporting Mr. W's long-term financial goals. The report emphasizes the importance of portfolio diversification to maximize returns and secure financial stability.

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

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INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................2
Profiling:....................................................................................................................................2
Two investment proposals:........................................................................................................2
Recommendations:.....................................................................................................................3
Potential Outcomes:...................................................................................................................4
Reference and Bibliography:......................................................................................................5
Appendices:................................................................................................................................6

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INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Introduction:
The overall assignment mainly aims in helping Mr W for improving its overall return
from investment to support its financial obligations in near future. Furthermore, Mr W is
facing relative difficulties in securing a high paying job, which is hindering his ability to
support its family’s requirements. Therefore, Mr W is aiming to increase the overall return
from investment by saving the 1.8 million by investing. The assignment portrays the overall
investment strategy, which is recommended by Ms Shelly for increasing the overall
profitability from investment. Moreover, the second proposal was provided by Mr. Trevor,
who recommend for a different type of investments that could help generate higher returns
from investment.
Profiling:
The profiling mainly helps in understanding the overall condition of Mr W, who
needs different toes of monetary benefits, which could help in generating higher revenue
from investment. Therefore, the main concern of Mr W is to fulfil his family needs, which
could only be supported by balanced fund investments. However, there is a possibility, where
Mr W will not able to find another high paying job. Moreover, Mr W has some past
investment experience, which could hamper its family expenses. Hence, the overall portfolio
that is needed by Mr W mainly consists of secure and steady stream of income that could
support its long-term course.
Two investment proposals:
There are two different types of investment schemes, which are provided to Mr W for
supporting its overall return from investment. The first investment options were mainly
provided by Ms Shelly’s, who have depicted the investment schemes on PER for a period of

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INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
4 years. This investment scheme could mainly allow Mr W to generate the required return of
3% every quarter. This eventually allowed the organisation to generate the required return for
supporting its activities. Moreover, the investment allows investors to support its returns,
which could help in increasing its profitability. Furthermore, the investment schemes allow
the investors to support Mr W financial obligations. Therefore, the fund could allow Mr W to
adequately withdraw and increase the fund on each quarter. These measures could mainly
allow Mr W to adjust its investment according to his requirements, while increasing or
decreasing its investment objectives.
Mr Trevor’s, who mainly states that Mr W should invest of SGD 1 million to GNB,
mainly provides the second investment recommendations. The investment in GNB will
mainly be tailored, which could directly allow the organisation to generate the required
profitability from investment. This could eventually help Mr W to support its future
endeavours and activities concerning his activities. Moreover, GNB would maintain an
adequate portfolio with a weight of local stocks (45%), cash deposits and foreign currencies
(10%), bonds (10%) and foreign stocks including the US and EU (35%). Te recommendation
portfolio could mainly allow Mr W to adequately support and generate the return for
supporting his family’s operations. This recommendation could directly allow the
organisation to support its return.
Recommendations:
The overall appendix 1 mainly helps in identifying the relevant recommendation,
which could be used by Mr W for effectively improving the returns from investment. The
recommendation is mainly conducted to acquire investments in Mr Trevor’s suggestion and
Ms Shelly’s. The investments of SGD 1,300,000 could be conducted in GNB portfolio,
which will segregate the interments in different weights consisting of local stocks (45%),

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INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
cash deposits and foreign currencies (10%), bonds (10%) and foreign stocks including the US
and EU (35%). Furthermore, the investments in the GNB controlled portfolio could
eventually allow Mr W to support its future endeavours. This could eventually help the
activities and generate the required return from investment. Furthermore, Mr W could
adequately utilise the other SGD 500,000, which might be invested in Ms Shelly’s proposal.
This segregation of the investment could eventually allow Mr W to generate the required
return to support its activities. Thus, the segregation could eventually allow Mr. W could
adequately support its activities and reduce the overall risk from investment. In this context,
Bodie, Kane & Marcus (2014) mentioned that segregation of portfolio mainly allows
investors to increase their return from investment and generate higher revenue. Therefore,
returns provided by the recommended investment could eventually allow the organisation for
generating higher revenue from investment.
Potential Outcomes:
Moreover, with the help of appendix 1, relevant outcomes from the recommended
investment could be identified. Therefore, the investment could provide mainly a return of
9.68% from the investments within 4 years. Hence, the use of recommended investment
criteria could allow Mr W to hedge its current exposure and generate the required
profitability that could support its activities. The investment opportunities are provided a
minimum of 5% and 4% retune, which could mainly allow Mr W to acquire the required
retune for supporting his family’s expenses in near future. Thus, a long-term investment
could be provided on the recommended investment scheme for supporting its superannuation
requirements.

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INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Reference and Bibliography:
Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments, 10e. McGraw-Hill Education.
Colapinto, C., & La Torre, D. (2015). Multiple Criteria Decision Making and Goal
Programming for Optimal Venture Capital Investments and Portfolio Management.
In Multiple Criteria Decision Making in Finance, Insurance and Investment (pp. 9-30).
Springer International Publishing.
De, S., & Chakraborty, T. (2015). Foreign portfolio investment and stock market volatility in
India. Indian Journal of Finance, 9(1), 49-59.
Hummel, J. M., Oliveira, M. D., e Costa, C. A. B., & IJzerman, M. J. (2017). Supporting the
Project Portfolio Selection Decision of Research and Development Investments by Means of
Multi-Criteria Resource Allocation Modelling. In Multi-Criteria Decision Analysis to
Support Healthcare Decisions (pp. 89-103). Springer International Publishing.
Jordan, B. (2014). Fundamentals of investments. McGraw-Hill Higher Education.
Kargi, B. (2014). Portfolio in Turkish economy, and a long termed relation between foreign
direct investments and the growth, and the structural breakage analysis (1980-2012).
Lahr, H., & Mina, A. (2016). Venture capital investments and the technological performance
of portfolio firms. Research Policy, 45(1), 303-318.
Yang, Y., Narayanan, V. K., & De Carolis, D. M. (2014). The relationship between portfolio
diversification and firm value: The evidence from corporate venture capital activity. Strategic
Management Journal, 35(13), 1993-2011.

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INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Appendices:
Ms. Shelly’s proposal
Investment amount SGD 1,800,000
Shelly investment SGD 500,000
Years 4
return every quarter 4%
Total return after 4 years SGD 936,491
Total income SGD 436,491
Mr. Trevor’s proposal
Investment amount SGD 1,800,000
Shelly investment SGD 1,300,000
Years 4
return every quarter 5%
Total return after 4 years SGD 2,837,737
Total income SGD 1,537,737
Total profit after 4 years SGD 1,974,228