3. Principles and parameters of the operational management of company's financial investments portfolio
By operational control of financial investments portfolio
is understood the rationale and implementation of management decisions that provide the support of target investment orientation to the portfolio formed by the parameters of its return, risk and liquidity restructuring.
The process of operational,, management of financial investments portfolio is carried out by the following stages:
The main factors leading to lower yield of share investment instruments:
decrease of paid dividends by reducing the amount of income received by the issuer;
growth of the net assets value of the issuer (decrease);
market downturn in the industry in which the issuer does his/her business;
significant excess of financial instruments market prices over the real value at the moment of its acquisition by the investor;
overall decline of stock market conditions;
speculative game of the stock market members, characterized by transition from the market of "bulls" to market of "bears";
increase of taxation of investment income according to share financial instruments.
The main factors leading to lower yield of debt investing instruments:
increase the interest rate on loans in the money market;
increase the rate of inflation in comparison with the previous period;
reduce the solvency level of the issuer (issuer credit rating);
unexpected decrease of the redemption fund size of the issuer;
reduce the liquidity premium on long-term debt financial instruments;
increase of taxation of investment income on debt instruments.
Ill
The restructuring of the investment portfolio - a process of rotation of certain portfolio financial instruments to improve overall profitability, reducing its overall risk or achieving other objectives of financial investment.
Topsc 11. Portfolio Management of financial investments companies
Plan
Financial investment portfolio: the concept, the basic types and their characteristics.
Management of formation of company's financial investments Portfolio.
Principles and parameters of the operational portfolio management of financial investments company.
Recommended Literature
Basic: 2, 3, 1, 8, 9,13.
Additional: 18, 22, 24, 21, 28, 30, 31, 32, 33, 40, 42.
Mini-lexicon: financial investment portfolio, income portfolio, growth, aggressive, moderate, conservative, blocking, strategic, portfolio theory, efficient, optimal portfolio, restructuring the portfolio.