Investment Management - 13738 Words

1 INVESTMENT MANAGEMENT Note: These course notes were written by Professor Virginia Maracine PhD and Professor Emil Scarlat PhD Department of Economic Cybernetics, Academy of Economic Studies Bucharest, using the announced references (see the Course s Syllabus). Chapter 1 Introduction. Basic of Investment 1.1. What Investment it is about? But Investment Management? 1. Investment - concepts and types The word Investment originates in the Latin vestis, meaning garment, and refers to the act of putting things (money or other claims to resources) into others pockets. The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the†¦show more content†¦Thus investment is everything that remains of production after consumption, government spending, and exports are subtracted. I is divided into non-residential investment (such as factories) and residential investment (new houses). Net investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year. Investment, as production over a period of time (per year), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st). Investment is often modeled as a function of Income and Interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest. Finance Approach In finance, investment = cost of capital, like buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, realShow MoreRelatedInvestment Management Case Study1305 Words   |  6 PagesBeta Management Company | | |Investment Management case study | Table of contents Backgrounds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦1 Strategies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...1 Background of California R.E.I.T and Brown Group Inc†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 Return and risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.....†¦2 Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...4 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...5 Background: BetaRead MoreInvestment Analysis Portfolio Management1583 Words   |  7 PagesHere is the term paper on investment analysis portfolio management from 31st may to 1st august. Now you will see that we have collected stock information and calculate relative things to evaluate our performance. We think that if anybody want to invest in the DSE , this term paper can help them to make decision whether or not they will invest or not and what strategy should they follow. Finally, we are also very much satisfied to have the scope of doing this investment which gave us the practicalRead MoreAn Evaluation Of An Investment Management Process1104 Words   |  5 PagesThe Weebly website defines investment as a commitment of funds made in the expectations of some positive rate of return otherwise emphasizing that expectation of returns in an essential element of an investment (imsmo.weebly.com). Basically, any business investment strategy comprises of a number of facets with some additional assistance from professional fund managers, settlement, dealing and the preparation of reports for clients (imsmo.weebly.com). Investment strategies are broadly divided intoRead MoreInvestment Strategy and Portfolio Management2408 Words   |  10 Pages Investment Strategy and Portfolio Management - Case of study: Kaplan Capital Introduction 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 optionsRead MoreInvestment Analysis and Portfolio Management10645 Words   |  43 Pagesanticipation of future returns. Investments could be made into financial assets, like stocks, bonds, and similar instruments or into real assets, like houses, land, or commodities. The aim of Portfolio Manager is to provide a brief overview of three aspects of investment: * The various options available to an investor in financial instruments. * The tools used in modern finance to optimally manage the financial portfolio. * Lastly the professional asset management industry as it exists todayRead MorePersonal Finance Management And Investment Recommendations1624 Words   |  7 PagesPersonal Finance Management Investment Recommendations The definition of personal finance is often defined as being the application of financial principles within an individual or family unit. Such application includes: budgeting, saving, spending, and assessing risks. Evidently, such financial management is of great importance. Therefore, in this paper, I will provide an overview of an individual’s personal finances by referencing their investment style and briefly stating their financial objectiveRead MoreCase Analysis : Investment Management Essay1375 Words   |  6 PagesC1.Target Market: LifePath Wealth Management, LLC has identified two distinct target markets. First are aging baby boomer advisors in Maricopa County, AZ over the age of 60 years old that lack a formal succession plan for their businesses. These advisors are categorized into mature lifestyle practices with an existing client-base that are underserved in the scope of services currently provided and do not focus on providing comprehensive wealth management solutions for these clients and the next generationRead MoreNotes On Bank Investment Management Services Ltd Essay1685 Words   |  7 PagesUTI Asset management company (P) ltd B. Bank sponsored BoB asset management companyltd Can bank investment management services ltd PNB asset management company ltd SBI funds management company ltd C. Institutions GIC asset management company ltd IDBI principal asset management co ltd ILFS asset management co ltd Jeevan bima sahayoge asset management co ltd D. Private sector 1. Indian Benchmark asset management co ltd Read MoreYale Case Solution - Investment Management1027 Words   |  5 Pages1. How is Yale’s investment philosophy reflected in its strategic asset allocation? Yale’s investment philosophy is one of the critical factors that played into the success of the fund’s performance in the past years. The philosophy is based on 5 principles: focus on equity, diversification, opportunities in inefficient markets, outside managers and alignment of manager’s incentives with Yale’s interests. In the paragraphs below I will discuss how each of these principles is reflected in the endowment’sRead MoreBurgundy Asset Management: The Wescast Investment Decision1471 Words   |  6 Pagesï » ¿Burgundy Asset Management: The Wescast Investment Decision Question 1 1. Describe the investment process currently used by Burgundy, and identify the strengths and weaknesses of the methodology. Burgundy Investment’s philosophy involved carefully evaluating the economics of individual companies and their managements. The firm stressed independent research and a long-term, â€Å"bottom-up† value approach to the assessment of individual companies. The firm’s approach was considered contrarian and opportunistic