{"id":533,"date":"2019-03-15T12:25:17","date_gmt":"2019-03-15T12:25:17","guid":{"rendered":"http:\/\/oconnorportfoliomanagement.com\/?p=533"},"modified":"2019-06-01T08:57:54","modified_gmt":"2019-06-01T08:57:54","slug":"how-do-investment-analysis-and-portfolio-management-align","status":"publish","type":"post","link":"https:\/\/oconnorportfoliomanagement.com\/?p=533","title":{"rendered":"How Do Investment Analysis and Portfolio Management Align?"},"content":{"rendered":"

Capital investments are a complex process. Most large organizations rely on a board of directors or investment<\/a> committee to help create strategies for managing commercial properties and capital investments. That\u2019s where investment analysis and portfolio management enter the scene.<\/p>\r\n\r\n

Once a board of directors analyzes investments and creates a strategy, the strategy is initiated by a portfolio management team. But because the process is multi-faceted, investment analysis and portfolio management don\u2019t always align when it comes to their objectives.<\/p>\r\n\r\n

Large organizations often find themselves with unwanted risks over time. This is because investment objectives are rarely delivered as designed and the portfolios end up looking much different than they were originally planned. Although administrative leaders often question portfolio management teams for failing to meet investment and capital targets, it\u2019s usually the process of capital investments that is the problem.<\/p>\r\n\r\n

In this article, we\u2019ll take a look into the reasoning behind the investment analysis and portfolio management gap. How can your business find new ways to properly align the two?<\/p>\r\n

The Different Functions of Investment Analysis and Portfolio Management<\/h2>\r\n

When an organization hard capital investments, they will create an investment analysis to decide how and where to deploy those capitals. Senior leaders will set target investments and goals for performance. When these goals come together, the investment analysis process is initiated and the targets are presented as capital strategies.<\/p>\r\n\r\n

Portfolio management focuses on a businesses\u2019 operations. A portfolio management team worries about running assets. They are responsible for capital planning and budgeting to help businesses target specific investment goals. Performance is measured by capital investment opportunities.<\/p>\r\n

Where\u2019s the Weak Link?<\/h2>\r\n

When it comes to investment analysis and portfolio management, the disconnect comes from several sources. While there are several factors involved, they are all related to data and information. The factors involved are:<\/p>\r\n