Question

In: Finance

You are a new Irish based portfolio manager serving international clients. You have €500 million of...

You are a new Irish based portfolio manager serving international clients. You have

€500 million of capital to invest and are currently formulating an investment and asset

allocation strategy.

Assuming your investment holding period is medium term (5 to 7 years), outline how

you would construct your portfolio and apportion capital to various assets.

Please outline your overall investment philosophy and general viewpoint on potential

returns during the holding period.

In terms of specific allocation please indicate the reasoning behind the asset selection.

considering you are a moderate investor

Expert Solution

Investment Philosophy also known as investment style which is basically approach of investment.Investment philosophy differ person to person.Some focus on companies with value or some go for growth strategy of investment.

It is a way of thinking how market work and don't work from a individual prospective carried with attention towards the common mistakes of the market.

Some of the investment philosophy are:-

Value investing- an Investment believe that some securities are present in market under it intrinsic value, these thinkers try to find those stock which are under valued in the market.

Growth Investor- These investors search for the companies which shows high growth opportunities in the near future.

Ireland is a strong Economy of European union, generally having companies associated to Life science, high tech, Financial service and Agricultural based companies.It ranks among top 10 High value foreign direct investment flow and had a GDP growth of 26.3% back in 2015.Growth of 2018 is stated to be 8.2%.Therefore, we consider it to be great investment destination for a Investment Country.

I being an Irish Fund Manager will follow the following investment Philosophy and strategy:-

Active Management-Focus on obtaining maximum return available within the market.By taking active investment decision based on 3 pillars like investment process of macro economics, valuation and technical analysis.

Dynamics Approach- Addition of value based on asset allocation, sector and stock selection.

Risk Management- Part of invested amount will go for the risk management part as it is that part which will help the company to minimise its fall down by making company ready before hand.

So, 40% of my investment will be in Active management, 40 % in Dynamics investment and 20% in risk management.

jeff jeffy answered 1 month ago

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