Enterprise Portfolio Management
Written by: Copperleaf
Effective investment portfolio management is crucial to the success of any organization, as it helps decide what gets funded and what doesn’t. Historically, many organizations focused exclusively on near-term cost control to meet capital spend and short-term earnings targets. However, this approach can potentially lead to extinction in the digital age.
Organizations today require an integrated approach to managing their investment portfolios. To optimize performance across the entire enterprise, business units can no longer operate in siloes. The focus must now be on selecting initiatives that maximize the value delivered to the organization overall.
Download this white paper to learn more about effective investment portfolio management through best practices, such as:
- Creating a strategic decision-making framework
- Establishing a value-based culture
- Developing value-based business cases
- Optimizing portfolios to targets
- Adapting to change
- Tracking benefits to continuously improve
FAQs
Six Best Practices for Effective Portfolio Management
- Creating a strategic decision-making framework.
- Establishing a value-based culture.
- Developing value-based business cases.
- Optimizing portfolios to targets.
- Adapting to change.
- Tracking benefits to continuously improve.
What are the 7 steps of the portfolio process? ›
Processes of Portfolio Management
- Step 1 – Identification of objectives. ...
- Step 2 – Estimating the capital market. ...
- Step 3 – Decisions about asset allocation. ...
- Step 4 – Formulating suitable portfolio strategies. ...
- Step 5 – Selecting of profitable investment and securities. ...
- Step 6 – Implementing portfolio. ...
- Step 7 – ...
- Step 8 –
What are the 4 different types of portfolio management strategies? ›
The four distinct types of portfolio management are active, passive, discretionary and non-discretionary management.
What is effective portfolio management? ›
The key to effective portfolio management is the long-term mix of assets. Generally, that means stocks, bonds, and cash equivalents such as certificates of deposit. There are others, called alternative investments, such as real estate, commodities, derivatives, and cryptocurrency.
What are the 6 steps of process management? ›
The steps of business process management (BPM) commonly include six phases: plan, design, model, implement, monitor, and optimize. These steps provide a structured, cyclical approach for business process improvement, including streamlining manual processes through workflow automation.
What are the six steps in the order management process? ›
The six steps in a typical order management process are order placement, processing, inventory management, shipping, tracking, and delivery.
What are the 4 Ps of portfolio management? ›
These are People, Philosophy, Process, and Performance. When evaluating a wealth manager, these are the key areas to think about. The 4P's can be dissected further, but for the purpose of this introduction, we'll focus on these high-level categories.
What are the 5 phases of portfolio management? ›
What are the 5 phases of portfolio management?
- Evaluate your current situation. ...
- Figure out your investment objectives. ...
- Determine your asset allocation. ...
- Choose investment options. ...
- Monitor your portfolio and rebalance as needed.
What are the 5 techniques for portfolio management? ›
Steps of Portfolio Management
- Step 1: Identifying the objective. An investor needs to identify the objective. ...
- Step 2: Estimating capital markets. ...
- Step 3: Asset Allocation. ...
- Step 4: Formulation of a Portfolio Strategy. ...
- Step 5: Implementing portfolio. ...
- Step 6: Evaluating portfolio.
What are the four pillars of portfolio management? ›
The basic premise of Olivier Lazar's book is his description of the four pillars of Portfolio Management: Organizational Agility, Strategy, Risk, and Resources.
Efficient Portfolio Management or “EPM” means investment in Derivatives with the aim of reducing risk or costs for the Fund or with the aim of generating additional Capital or Income without any additional risk. A common example of the use of EPM is Hedging in order to reduce risk.
Which portfolio strategy is best? ›
"The best way to grow an investment portfolio is twofold: Own great investments, and mitigate losses through diversification," says Stephanie Williams, senior wealth advisor at AlphaCore Wealth Advisory.
What are the three key factors to success with portfolio management? ›
Three Key Elements for Achieving Strategic Portfolio Management Excellence
- Operating at the Speed of Innovation. ...
- Increasing Cross-Functional Collaboration to Exceed Revenue Targets. ...
- Enabling Agility to Meet Evolving Business Needs.
What is the best measure of a portfolio managers performance? ›
The 8 Best Portfolio Performance Metrics
- Compound Annual Return. The compound annual return, sometimes called compound annual growth rate, or CAGR, is the most common and most important metric for most investors. ...
- Compound Annual Return vs. ...
- Sharpe Ratio. ...
- Beta. ...
- Jensen's Alpha. ...
- Treynor Ratio. ...
- Sortino Ratio. ...
- Calmar Ratio.
What are the six steps in improving performance management? ›
Steps of the performance management process
- Planning: Setting the course for success. ...
- Monitoring: Tracking progress and providing support. ...
- Developing: Nurturing growth and potential. ...
- Rating: Assessing performance objectively. ...
- Rewarding: Recognizing and celebrating successes. ...
- Renewing: Continuously enhancing performance.
What are the six steps in the strategic management process briefly describe? ›
The strategic management process are steps that help achieve better business outcomes. The main components of the strategic management process are clarifying vision, environmental scanning, assembling a strategy, implementing the strategy, and then monitoring and evaluating the strategy.
What is the portfolio management process and its steps? ›
Portfolio management includes asset allocation, security selection, risk management, and ongoing monitoring and adjustment of the portfolio. Portfolio management is crucial for investors as it focuses on maximizing returns while eliminating or minimizing the risks associated with the investment.
What are the steps in portfolio management CFA? ›
Understanding the needs of your client and preparing an investment policy statement represent the first steps of the portfolio management process. Those steps are followed by asset allocation, security analysis, portfolio construction, portfolio monitoring and rebalancing, and performance measurement and reporting.