《AllocationDecision(投资分析与投资组合管理).pptx》由会员分享，可在线阅读，更多相关《AllocationDecision(投资分析与投资组合管理).pptx（45页珍藏版）》请在taowenge.com淘文阁网|工程机械CAD图纸|机械工程制图|CAD装配图下载|SolidWorks_CaTia_CAD_UG_PROE_设计图分享下载上搜索。
1、Lecture Presentation Software to accompanyInvestment Analysis and Portfolio ManagementSeventh Editionby Frank K.Reilly&Keith C.BrownChapter 2Chapter 2The Asset Allocation DecisionQuestions to be answered:What is asset allocation?What are the four steps in the portfolio management process?What is the
2、 role of asset allocation in investment planning?Why is a policy statement important to the planning process?Chapter 2The Asset Allocation DecisionWhat objectives and constraints should be detailed in a policy statement?How and why do investment goals change over a persons lifetime and circumstances
3、?Why do asset allocation strategies differ across national boundaries?Financial Plan PreliminariesInsuranceLife insuranceTerm life insurance-Provides death benefit only.Premium could change every renewal period Universal and variable life insurance provide cash value plus death benefit Financial Pla
4、n PreliminariesInsuranceHealth insuranceDisability insuranceAutomobile insuranceHome/rental insuranceLiability insuranceFinancial Plan PreliminariesCash reserveTo meet emergency needsIncludes cash equivalents(liquid investments)Equal to six months living expenses recommended by expertsIndividual Inv
5、estorLife CycleAccumulation phase early to middle years of working careerConsolidation phase past midpoint of careers.Earnings greater than expensesSpending/Gifting phase begins after retirementIndividual Investor Life CycleNet WorthAgeAccumulation PhaseLong-term:Retirement Childrens college Short-t
6、erm:House CarConsolidation PhaseLong-term:RetirementShort-term:VacationsChildrens CollegeSpending Phase Gifting PhaseLong-term:Estate PlanningShort-term:Lifestyle Needs Gifts Exhibit 2.1Life Cycle Investment GoalsNear-term,high-priority goalsLong-term,high-priority goalsLower-priority goalsThe Portf
7、olio Management Process1.Policy statement-Focus:Investors short-term and long-term needs,familiarity with capital market history,and expectations2.Examine current and project financial,economic,political,and social conditions-Focus:Short-term and intermediate-term expected conditions to use in const
8、ructing a specific portfolio3.Implement the plan by constructing the portfolio-Focus:Meet the investors needs at the minimum risk levels4.Feedback loop:Monitor and update investor needs,environmental conditions,portfolio performanceExhibit 2.2The Portfolio Management Process 1.Policy statementspecif
9、ies investment goals and acceptable risk levelsshould be reviewed periodicallyguides all investment decisionsThe Portfolio Management Process 2.Study current financial and economic conditions and forecast future trendsdetermine strategies to meet goalsrequires monitoring and updatingThe Portfolio Ma
10、nagement Process 3.Construct the portfolioallocate available funds to minimize investors risks and meet investment goals The Portfolio Management Process 4.Monitor and updateevaluate portfolio performanceMonitor investors needs and market conditionsrevise policy statement as neededmodify investment
11、strategy accordinglyThe Need For A Policy StatementHelps investors understand their own needs,objectives,and investment constraintsSets standards for evaluating portfolio performanceReduces the possibility of inappropriate behavior on the part of the portfolio manager Constructing A Policy Statement
12、Questions to be answered:What are the real risks of an adverse financial outcome,especially in the short run?What probable emotional reactions will I have to an adverse financial outcome?How knowledgeable am I about investments and the financial markets?Constructing A Policy StatementWhat other capi
13、tal or income sources do I have?How important is this particular portfolio to my overall financial position?What,if any,legal restrictions may affect my investment needs?What,if any,unanticipated consequences of interim fluctuations in portfolio value might affect my investment policy?Investment Obj
14、ectivesRisk ToleranceAbsolute or relative percentage returnGeneral goalsInvestment ObjectivesGeneral GoalsCapital preservationminimize risk of real lossCapital appreciationGrowth of the portfolio in real terms to meet future needCurrent incomeFocus is in generating income rather than capital gainsIn
15、vestment ObjectivesGeneral GoalsTotal returnIncrease portfolio value by capital gains and by reinvesting current incomeMaintain moderate risk exposureInvestment ConstraintsLiquidity needsVary between investors depending upon age,employment,tax status,etc.Time horizonInfluences liquidity needs and ri
16、sk toleranceInvestment ConstraintsTax concernsCapital gains or losses taxed differently from incomeUnrealized capital gain reflect price appreciation of currently held assets that have not yet been soldRealized capital gain when the asset has been sold at a profitTrade-off between taxes and diversif
17、ication tax consequences of selling company stock for diversification purposesInvestment ConstraintsTax concerns(continued)interest on municipal bonds exempt from federal income tax and from state of issueinterest on federal securities exempt from state income taxcontributions to an IRA may qualify
18、as deductible from taxable incometax deferral considerations-compoundingEquivalent Taxable YieldEffect of Tax Deferral on Investor Wealth over Time$1,000Investment ValueTime$10,062.66$5,365.91Exhibit 2.6Methods of Tax DeferralRegular IRA-tax deductibleTax on returns deferred until withdrawal Roth IR
19、A-not tax deductibletax-free withdrawals possibleCash value life insurance funds accumulate tax-free until they are withdrawnTax Sheltered AnnuitiesEmployers 401(k)and 403(b)plans tax-deferred investmentsLegal and Regulatory FactorsLimitations or penalties on withdrawalsFiduciary responsibilities-“p
20、rudent man”ruleInvestment laws prohibit insider tradingUnique Needs and PreferencesPersonal preferences such as socially conscious investments could influence investment choiceTime constraints or lack of expertise for managing the portfolio may require professional managementLarge investment in empl
21、oyers stock may require consideration of diversification needs Institutional investors needsConstructing the Policy StatementObjectives-risk and returnConstraints-liquidity,time horizon,tax factors,legal and regulatory constraints,and unique needs and preferencesDeveloping a plan depends on understa
22、nding the relationship between risk and return and the the importance of diversificationThe Importance of Asset AllocationAn investment strategy is based on four decisionsWhat asset classes to consider for investmentWhat normal or policy weights to assign to each eligible classDetermining the allowa
23、ble allocation ranges based on policy weightsWhat specific securities to purchase for the portfolioThe Importance of Asset AllocationAccording to research studies,most(85%to 95%)of the overall investment return is due to the first two decisions,not the selection of individual investmentsReturns and
24、Risk of Different Asset ClassesHistorically,small company stocks have generated the highest returns.But the volatility of returns have been the highest tooInflation and taxes have a major impact on returnsReturns on Treasury Bills have barely kept pace with inflationReturns and Risk of Different Ass
25、et ClassesMeasuring risk by probability of not meeting your investment return objective indicates risk of equities is small and that of T-bills is large because of their differences in expected returnsFocusing only on return variability as a measure of risk ignores reinvestment riskAsset Allocation
26、SummaryPolicy statement determines types of assets to include in portfolioAsset allocation determines portfolio return more than stock selectionOver long time periods,sizable allocation to equity will improve resultsRisk of a strategy depends on the investors goals and time horizonAsset Allocation a
27、nd Cultural DifferencesSocial,political,and tax environments influence the asset allocation decisionEquity allocations of U.S.pension funds average 58%In the United Kingdom,equities make up 78%of assetsIn Germany,equity allocation averages 8%In Japan,equities are 37%of assetsSummary1.Identify invest
28、ment needs,risk tolerance,and familiarity with capital markets2.Identify objectives and constraints3.Enhance investment plans by accurate formulation of a policy statement4.Focus on asset allocation as it determines long-term returns and riskThe InternetInvestments Onlinewww.amercoll.eduwww.idfp.org
29、www.napfa.orgAppendix Objectives and Constraints of Institutional InvestorsMutual Funds pool investors funds and invests them in financial assets as per its investment objectivePension FundsReceive contributions from the firm,its employees,or both and invests those fundsDefined Benefit promise to pa
30、y retirees a specific income stream after retirementDefined Contribution do not promise a set of benefits.Employees retirement income is not an obligation of the firm Endowment FundsThey represent contributions made to charitable or educational institutions Insurance CompaniesLife Insurance Companie
31、searn rate in excess of actuarial rategrowing surplus if the spread is positivefiduciary principles limit the risk toleranceliquidity needs have increased tax rule changesInsurance CompaniesNonlife Insurance Companiescash flows less predictablefiduciary responsibility to claimantsRisk exposure low t
32、o moderateliquidity concerns due to uncertain claim patternsregulation more permissiveBanksMust attract funds in a competitive interest rate environmentTry to maintain a positive difference between their cost of funds and their return on assetsNeed substantial liquidity to meet withdrawals and loan
33、demandsFace regulatory constraintsFuture topicsChapter 3 Investment choicesIncluding global assets in asset allocation decisions9、静夜四无邻，荒居旧业贫。12月-2312月-23Monday,December 4,202310、雨中黄叶树，灯下白头人。21:06:0021:06:0021:0612/4/2023 9:06:00 PM11、以我独沈久，愧君相见频。12月-2321:06:0021:06Dec-2304-Dec-2312、故人江海别，几度隔山川。21:0
34、6:0021:06:0021:06Monday,December 4,202313、乍见翻疑梦，相悲各问年。12月-2312月-2321:06:0021:06:00December 4,202314、他乡生白发，旧国见青山。04 十二月 20239:06:00 下午21:06:0012月-2315、比不了得就不比，得不到的就不要。十二月 239:06 下午12月-2321:06December 4,202316、行动出成果，工作出财富。2023/12/4 21:06:0021:06:0004 December 202317、做前，能够环视四周；做时，你只能或者最好沿着以脚为起点的射线向前。9:
35、06:00 下午9:06 下午21:06:0012月-239、没有失败，只有暂时停止成功！。12月-2312月-23Monday,December 4,202310、很多事情努力了未必有结果，但是不努力却什么改变也没有。21:06:0021:06:0021:0612/4/2023 9:06:00 PM11、成功就是日复一日那一点点小小努力的积累。12月-2321:06:0021:06Dec-2304-Dec-2312、世间成事，不求其绝对圆满，留一份不足，可得无限完美。21:06:0021:06:0021:06Monday,December 4,202313、不知香积寺，数里入云峰。12月-2
36、312月-2321:06:0021:06:00December 4,202314、意志坚强的人能把世界放在手中像泥块一样任意揉捏。04 十二月 20239:06:00 下午21:06:0012月-2315、楚塞三湘接，荆门九派通。十二月 239:06 下午12月-2321:06December 4,202316、少年十五二十时，步行夺得胡马骑。2023/12/4 21:06:0021:06:0004 December 202317、空山新雨后，天气晚来秋。9:06:00 下午9:06 下午21:06:0012月-239、杨柳散和风，青山澹吾虑。12月-2312月-23Monday,Decemb
37、er 4,202310、阅读一切好书如同和过去最杰出的人谈话。21:06:0021:06:0021:0612/4/2023 9:06:00 PM11、越是没有本领的就越加自命不凡。12月-2321:06:0021:06Dec-2304-Dec-2312、越是无能的人，越喜欢挑剔别人的错儿。21:06:0021:06:0021:06Monday,December 4,202313、知人者智，自知者明。胜人者有力，自胜者强。12月-2312月-2321:06:0021:06:00December 4,202314、意志坚强的人能把世界放在手中像泥块一样任意揉捏。04 十二月 20239:06:00
38、 下午21:06:0012月-2315、最具挑战性的挑战莫过于提升自我。十二月 239:06 下午12月-2321:06December 4,202316、业余生活要有意义，不要越轨。2023/12/4 21:06:0021:06:0004 December 202317、一个人即使已登上顶峰，也仍要自强不息。9:06:00 下午9:06 下午21:06:0012月-23MOMODA POWERPOINTLorem ipsum dolor sit,eleifend nulla ac,fringilla purus.Nulla iaculis tempor felis amet,consectetur adipiscing elit.Fusce id urna blanditut cursus.感感 谢谢 您您 的的 下下 载载 观观 看看专家告诉