Investment Portfolio Management Assignment Help

Portfolio Management may refer to:

  • Investment management
  • IT portfolio management
  • Project management
  • Project portfolio management

Investment management

Investment management is the professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds). The term asset management is often used to refer to the investment management of collective investments, (not necessarily) while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management often within the context of so-called "private banking".

The provision of 'investment management services' includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Investment management is a large and important global industry in its own right responsible for caretaking of trillions of yuan, dollars, euro, pounds and yen. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff and create billions in revenue.

IT portfolio management

IT portfolio management is the application of systematic management to large classes of items managed by enterprise Information Technology (IT) capabilities. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services (such as application support). The promise of IT portfolio management is the quantification of previously informal IT efforts, enabling measurement and objective evaluation of investment scenarios.

Project management

Project management is the discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives. It is sometimes conflated with program management, however technically that is actually a higher level construction: a group of related and somehow interdependent engineering projects. A project is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables), undertaken to meet unique goals and objectives,usually to bring about beneficial change or added value. The temporary nature of projects stands in contrast to business as usual (or operations), which are repetitive, permanent or semi-permanent functional work to produce products or services. In practice, the management of these two systems is often found to be quite different, and as such requires the development of distinct technical skills and the adoption of separate management.

The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived project constraints.

Project portfolio management

Project Portfolio Management (PPM) is a term used by project managers and project management (PM) organizations, (or PMOs), to describe methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics. The fundamental objective of PPM is to determine the optimal mix and sequencing of proposed projects to best achieve the organization's overall goals - typically expressed in terms of hard economic measures, business strategy goals, or technical strategy goals - while honoring constraints imposed by management or external real-world factors. Typical attributes of projects being analyzed in a PPM process include each project's total expected cost, consumption of scarce resources (human or otherwise) expected timeline and schedule of investment, expected nature, magnitude and timing of benefits to be realized, and relationship or inter-dependencies with other projects in the portfolio.

The key challenge to implementing an effective PPM process is typically securing the mandate to do so. Many organizations are culturally inured to an informal method of making project investment decisions, which can be compared to political processes observable in the U.S. legislature.[citation needed] However this approach to making project investment decisions has led many organizations to unsatisfactory results, and created demand for a more methodical and transparent decision making process. That demand has in turn created a commercial marketplace for tools and systems which facilitate such a process.

Some commercial vendors of PPM software emphasize their products' ability to treat projects as part of an overall investment portfolio. PPM advocates see it as a shift away from one-off, ad hoc approaches to project investment decision making. Most PPM tools and methods attempt to establish a set of values, techniques and technologies that enable visibility, standardization, measurement and process improvement. PPM tools attempt to enable organizations to manage the continuous flow of projects from concept to completion. Treating a set of projects as a portfolio would be, in most cases, an improvement on the ad hoc, one-off analysis of individual project proposals. The relationship between PPM techniques and existing investment analysis methods is a matter of debate. While many are represented as "rigorous" and "quantitative", few PPM tools attempt to incorporate established financial portfolio optimization methods like modern portfolio theory or Applied Information Economics, which have been applied to project portfolios, including even non-financial issues

Bond Index Definition

Introduction or definition of Bond index:

The bond index definition is a combination of bonds record or permanent income instruments and a guide dazzling the complex value of its works. It is used as an implement in the portfolio management process to characterize the cumulative characteristics of the fundamental securities.

The percentage of reduction in bond index definition in the region of interest (db/ft) to the decrease in well-cemented segment (db/ft). Thus the bond index value is computerized as a bond index value is a pointer of the quality of the strength of the bond.

Bond Index Definition:lehman Brothers

An indicator used by bond finances as a standard to calculate their absolute performance. The index comprises the administration securities, mortgage-backed securities, asset-backed securities and commercial securities to replicate the universal bonds in the market. The index of the bond gets matured more than the one year.

The construction of index bond was made by Lehman Brothers. This type of construction was consider to be an best of all index bond, about 90% investors in the United States make use of this type of Bond index. Along with this an aggregate index bond was constructed and they are joined together along with ordinary index bond that cannot be purchased directly but it could be tracked by fund investors of the bond index.

Related Concepts of Bond Index Definition

There are certain does and don’ts for investing in bonds – first we should know the concepts for investing, and calculations for trading bonds including bond price, product, term configuration of interest rates and period.

Another way of defining a bond index is such that profits earned from a bond. Where the bond pays cyclic interest, thus equalizing the interest claimed. Wherever a bond is sold at a concession on the average value, it equals the variation involvement in the purchase of price and amount expected on bond's maturity date.

Index bond (or index-linked) bond:

A bond index definition whose important expenditure are connected to the customer or wholesale price indicator and are therefore accustomed for price increases.

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