Comprehensive Investment Analysis and Portfolio Management Report

This report provides a comprehensive overview of investment analysis and portfolio management. It begins by defining investment management and detailing how to set investment objectives, emphasizing the importance of balancing return objectives with risk tolerance. The report then distinguishes between financial assets (stocks, bonds) and real assets (property, commodities), providing examples of each. It discusses the regulations of the financial market, highlighting the impact of regulations like Dodd-Frank and EMIR in preventing unethical practices and protecting investors. The report then delves into measuring and evaluating investment performance, detailing techniques like arithmetic average, time-weighted, dollar-weighted, and annualized rates of return. It describes different types of investment classes, including equities, commodities, and real estate. Finally, it outlines the two primary types of investment companies: closed-end and open-end (mutual funds), explaining their key characteristics and differences.

Running head: INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Investment Analysis and Portfolio Management
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Table of Contents
1. Defining investment management and explaining how to set investment objectives:...........2
2. Describing financial assets and real assets and providing example of each:.........................2
3. Discussing regulations of financial market:...........................................................................3
4. Measuring and evaluating investment performance:.............................................................4
5. Describing different types of investment classes:..................................................................5
6. Detecting the two primary types of investment companies:..................................................6
References and Bibliography:....................................................................................................8

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1. Defining investment management and explaining how to set investment objectives:
The professional assets management conducted by individuals for selected persons is
considered investment management. The individuals holding the advisor position is mainly
considered as the investment managers, who alter the investment for reducing the total risk
and raising the level of returns from investment. The investment management relevant
evaluates shares, bonds, and other securities in a particular portfolio for generating high level
of income from investment. Akimova, Stein and Prokhorova (2015) indicated that investment
management is conducted both ways where investors can manage their own funds or higher
experienced individuals for managing their funds.
The investment objectives are relevantly set with the implementation of adequate
analysis that depicts the requirements of the individual. In addition, the evaluations relevantly
help in detecting the investment criteria, where it is classified as individual investors and
institutional investors. This classification relevantly helps in setting the adequate level of
investment objectives. Moreover, the derivation of the investment objectives mainly helps in
balancing returns objectives with the risk tolerance of the individual. The investment
objectives is also established by analyst on the basis of personal preference, where the
identification process might eventually help in detecting whether the individual is
conservative investor, passive investor or high growth investor.
2. Describing financial assets and real assets and providing example of each:
Financial assets are considered as an investment options, which is conducted in
tangible liquid assets that directly gets its value from contractual claim. The financial assets
can be further subdivided into two sections comprises of primary assets and derivative assets.
There are relevant examples of financial assets, which are cash, stocks, bonds, and bank

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deposits that are used by the investors while creating the portfolio for generating high level of
returns from investment. The financial asses such as bonds and stocks are relevantly backed
with the performance of the organisation issuing the bonds. However, the main component of
the financial assets is the contractual obligations of the individuals issuing the instruments to
repay the amount for the contract.
The real assets mainly comprise of tangible elements such as property, which has a
physical substance that has its own values in the market. Real assets can be identified as
property, precious metals, commodities, agricultural land, machinery, oil and real estate. The
price valuation of the above commodity is mainly conducted in market data, where the assets
is backed by the substance, which is demanded in the market. The value of real assets is
relevantly determined by the demand and supply of the components, where higher demand
and low supply results in inflated prices. Chandra (2017) indicated that due to the excessive
supply of oil during the period of 2015 the prices of the commodity relevantly fell from the
high of $110 to $45 within the time period of one year.
3. Discussing regulations of financial market:
Regulations in the financial market is an essential measure that needs to be taken into
consideration by the appropriate regulators for reducing the occurrence of unethical measure
conducted by companies and investors. Furthermore, the implementation of the regulation in
the financial market ensures that the functions are steered efficiently and effectively. The
problems in the financial market was mainly highlighted during the financial crisis of 2008,
which relevantly forced the regulators to impose significant regulations. Additionally, the
regulators have relevantly allowed the financial market to prevent money laundering and
corruption, while increasing the investors protection. There have been relevant regulations
such as Dodd–Frank Wall Street Reform, Consumer Protection Act (DFA), European

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Markets and Infrastructure Regulation (EMIR), Over the Counter (OTC) Derivatives Market,
and Markets in Financial Instruments Directive (MiFID). The relevant regulation has mainly
allowed the financial markets to regulate the investors and organisation conducting
operations in the market.
The financial market regulations are evaluated by UK Listing Authority and London
Stock Exchange, which regulates different level of operations by investors and over the
period of time. The identified regulations have adequately helped in minimising the
occurrence of unethical measures that might hamper operations of the financial market.
Gaudard (2015) mentioned that with the use of regulations the interest of investors is
protected, as it minimises the occurrence of unethical measure and promote fair trade.
4. Measuring and evaluating investment performance:
The investment performance can be measured with adequate calculations, which
eventually help in understanding the performance of the portfolio. The performance
measurement directly allows the investors to understand capability of the portfolio managers
for detecting its capability to generate high level of returns from investment. The
performance is relevantly evaluated with the help of measuring techniques such as arithmetic
average rate of returns, time-weighted rate of return, dollar weighted rate of return and
annualised rate of return. The identified techniques used for analysing the investment
performance directly allows the investor to detect capability of the portfolio managers in past
to accumulate the adequate level of returns from investment. Mauleon and Hamoudi (2017)
mentioned that investors use the method for adequately measuring the financial performance
of portfolio, which help them make investment decisions. On the other hand, Chen et al.
(2017) criticises that created portfolio of the investor can have high level of risk involved
with investment, which relevantly hinders investment capital and raises concern for the

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investors. relevantly reduces the level of income from investment, which can be used for
generating high level of returns from investment.
The arithmetic average rate of return relevantly uses average rate of return from
investment, which is evaluated within a stipulated period.
The time-weighted rate of return mainly measures the compounded rate of growth,
where the initial market value during the period, which helps in sussing the cash distribution
in determining the returns of the investment. The method relevantly uses geometric mean
method for analysing the risk and return attributes of the investment.
The dollar weighted rate of return is relevantly used for calculating the internal rate of
return from investment, which eventually help in detecting the investment performance of the
investors. The formula has been used for detecting the investment income that will be
conducted for investment, while detecting the total risk of the portfolio.
The annualised rate of return is mainly conducted for detecting the total returns that
has been generated during the year. In addition, the annualised returns directly indicates the
high level of income that is generated from investment, while detecting the risk involved in
investments.
5. Describing different types of investment classes:
There are different types of investment classes such as equities, commodities and real
estate in addition to inflation-linked bonds. The identified investment classes would
eventually help investors to generate high level of income from investment, which allow the
investors to analyse the investment options. Chisholm et al. (2016) mentioned that investor
analyse the investment classes to detect the viable investment options, which can generate
high level of income from investments. The equity classes relevantly comprise of stocks,

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which is analysed by detecting return and risk attributes of the investment. The investors by
analysing the risk and return attributes might eventually help in obtaining high level income
from investment. The investment in bonds are also conducted by investors for generating
high level of income without having risk attributes of investment.
The other investment classes such as commodities and real estate is mainly detected
an adequate investment options, which might eventually help raising income from
investment. The investment in real estate and commodities relevantly holds low risk
attributes, as it backed by the values of the substance, which allow the investors to get
adequate returns from investments. DeFusco et al. (2015) indicated that investors evaluate the
investment classes, while preparing the portfolio, which help in minimising the risk and
maximising returns from investment.
6. Detecting the two primary types of investment companies:
There are two primary types of investment companies known as Closed-end
investment companies and Open-end investment companies. In addition, investors are able to
conduct adequate investment in the selected companies for adequately increasing their
returns, while reducing the risk from investment. the closed end investment companies
relevantly issue shares in one-time public offering. These type of companies does not
continuously offer new shares, nor does they redeem the share issued like the open-end invest
companies. Moreover, the investor after the issue of shares can trade it in the market, as per
the demand and supply conditions, which focuses on detecting the price of the instrument.
Thus, it could be detected the shares of the company is relevantly sold at premium and par
levels of the actual net asset value.
Furthermore, the Open-end investment companies are mainly known as mutual funds,
which relevantly issues new shares. The share issued by the companies were relevantly

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purchased from the investment company, which were sold back to the investment company.
Therefore, investors can use adequate mutual fund for adequately purchasing and selling the
shares of the investment company. Gross et al. (2016) mentioned that investors use adequate
investment option, which can eventually help in generating high level of income from
investment.

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References and Bibliography:
Akimova, E.M., Stein, E.M. and Prokhorova, Y.S., 2015. System analysis in the investment
processes management and theoretical principles of the investments assessment. Journal of
Advanced Research in Law and Economics, 6(3 (13)), p.472.
Chandra, P., 2017. Investment analysis and portfolio management. McGraw-Hill Education.
Chang, M.H., Sandborn, P., Pecht, M., Yung, W.K. and Wang, W., 2015. A return on
investment analysis of applying health monitoring to LED lighting systems. Microelectronics
Reliability, 55(3-4), pp.527-537.
Chen, L., Wang, Y., Lai, F. and Feng, F., 2017. An investment analysis for China's
sustainable development based on inverse data envelopment analysis. Journal of cleaner
production, 142, pp.1638-1649.
Chisholm, D., Sweeny, K., Sheehan, P., Rasmussen, B., Smit, F., Cuijpers, P. and Saxena, S.,
2016. Scaling-up treatment of depression and anxiety: a global return on investment
analysis. The Lancet Psychiatry, 3(5), pp.415-424.
DeFusco, R.A., McLeavey, D.W., Pinto, J.E., Anson, M.J. and Runkle, D.E.,
2015. Quantitative investment analysis. John Wiley & Sons.
Gaudard, L., 2015. Pumped-storage project: A short to long term investment analysis
including climate change. Renewable and Sustainable Energy Reviews, 49, pp.91-99.
Gross, M.V., Erichev, V.A. and Ivanyuk, T.N., 2016. Features of a technique of investment
analysis. Modern trends in Economics and mana new look, (38), pp.129-136.

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Guillen, J., Cheilari, A., Damalas, D. and Barbas, T., 2016. Oil for fish: an energy return on
investment analysis of selected European Union fishing fleets. Journal of Industrial
Ecology, 20(1), pp.145-153.
Landau, S., Weisbrod, G., Gosling, G., Williges, C., Pumphrey, M. and Fowler, M.,
2015. Passenger Value of Time, Benefit-Cost Analysis, and Airport Capital Investment
Decisions. Volume 1: Guidebook for Valuing User Time Savings in Airport Capital
Investment Decision Analysis (No. ACRP 03-19).
Mauleón, I. and Hamoudi, H., 2017. Photovoltaic and wind cost decrease estimation:
Implications for investment analysis. Energy, 137, pp.1054-1065.
Romich, E., Geiger, M. and Rashford, B.S., 2016. Solar Electric Investment Analysis:
Estimating System Production. University of Wyoming Extension.