Real Estate Portfolio Analysis
Assessed Report
This module is assessed in two parts. First, an assessed group seminar presentation will take place before the end of the Autumn Semester (20%). Second, an assessed report will require you to undertake a practical portfolio management exercise, involving the use of secondary data and spreadsheet analysis (80%).
Assessed report
Scenario: You are employed as an investment analyst in the Portfolio Strategy Department of P.R.I.M. (Portfolio Research Investment Managers), one of the largest firms of international investment managers. P.R.I.M. currently has £25.1 billion of real estate assets under management, of which 15% are in direct property in the UK.
Brief: Put Out To Pasture (PO2P) is your largest UK-based client, and you have recently taken over responsibility for the strategic allocation of their £1.2 billion direct real estate pension fund. You must submit a report to PO2P’s Chief Executive detailing your proposed strategy for the fund for the 12 months to mid Jan 2020.
Coverage: This report should include:
• • an Executive Summary setting out the purpose, coverage, findings and strategic
recommendations;
• • an investment strategy, with explicit return and risk objectives and statement of
management style;
• • market analysis, to include relevant national, sectoral and regional details, to
clearly inform your fund allocation;
• • forecasts of performance, with analysis of the consequences for the benchmark
and the portfolio as it is currently structured;
• • proposals for the strategic allocation of the £1.2 billion direct property fund for the
12 months to mid Jan 2020;
• • details of expected absolute and relative performance; and
• • one example of a specific target property for purchase (or sale) in each region,
with analysis of specific risk opportunities (or threats).
All sections must be underpinned by an explicit consideration of property investment issues, including: (i) investment theory and (ii) practical application of theory to fund management.
Their is a need to make two separate excel files for fund and benchmark
