Investment Strategy and Portfolio Management Essay examples
For organisations operating in unpredictable and competitive markets, it becomes a challenge for fund managers to create an optimal investment portfolio for their companies and their clients. Fund managers are presented with various prospects in emerging markets, equities, real estate, corporate bonds, government bonds, hedge funds, financial derivatives, and other alternative investments options. With such a diverse investment market, it becomes increasingly complicated for fund managers and other investors to shape, manage and monitor investment portfolios. This report presents a discussion on the future strategic asset allocations which …show more content…
Certainly, the suitable asset mix for different investors depends on various factors such as financial goals, risk tolerance and time horizon. Financial goals of the company will determine how the company will apportion various investment assets in a portfolio. In the case of Kaplan Capital, it expects a considerable cash outflow from June 2012, by the initial contributors. In line with its financial goals, the company had allocated a large proportion of its portfolio to equities and bonds, which are deemed to give good returns in the long-term.
The company’s risk acceptance is a very important factor in