Essay on Global Portfolio Performance

Submitted By LinnanYang1
Words: 2620
Pages: 11

Global Investment Management
Portfolio Performance Analysis

Table of Contents Introduction 1 Detailed Analysis 1 Australia 1 Brazil 1 Canada 2 China 2 France 3 Hong Kong 3 India 3 Ireland 4 Italy 4 Malaysia 4 Mexico 4 Singapore 5 South Korea 5 Switzerland 5 USA 5 Sweden 6 Taiwan 6 New Zealand 6 Overall Results 6 Conclusion 7
Reference

Introduction
Stock Trax is a leading platform for virtual trading securities in international exchange market. This report gives an overview performance of the global investment portfolio that I have invested in global market from July 1 to July 31 in 2013. This report also compares the performance of stocks and the benchmark ETF in different countries and in different perspective. Meanwhile, the overall portfolio performance will be evaluated and discussed in terms of total portfolio performance attribution and security selection performance attribution. Last, the portfolio‘s overall results are identified as well in terms of asset allocation perspective and security selection perspective.
Detailed Analysis
Based on the principle of diversification, the investment should be diversified in to different capital investment market in order to reduce the risk. According to the investment history, I choose 124 stocks from 18 countries. These stocks are classified by currency that they exchange in different market. In addition, this report will evaluate what my portfolio performed in one specific country and the benchmark indicator from that same country. The general country performance of my portfolio will be discussed one by one.
Australia
The country weighted of my portfolio in Australia is 2.74% and portfolio P/L is 6.69%. The market allocation contribution in -0.06% which indicates stocks performance from Australia negatively affects the global benchmark performance. The currency allocation contribution is 0.03% and the security selection contribution is 0.03% as well. The security selection contribution indicates the stocks in my portfolio are outperforming 0.03% in comparison to the benchmark. The market return component is 0.16% and the security selection component is 0.03% which shows the better performance than benchmark. The security selection performance attribution in Australia is 0.11% which analyzes the pure performance of the security selection; the positive number indicates positive attribution to the overall portfolio.
Brazil
The country weighted of my portfolio in Brazil is 0.13% and portfolio P/L is 33.65%. The market allocation contribution in 0.03% which indicates stocks performance from Brazil positively affects the global benchmark performance. The currency allocation contribution is 0.17% and the security selection contribution is 0.04%. The security selection contribution indicates the stocks are over performed 0.04 percentage than the benchmark. From the asset allocation perspective, the total portfolio performance attribution is 0.21%. It is outperforming 0.21 percentage in comparison to the benchmark. The market return component is 0.00% due to the country weighted of Brazil only accounts for 0.13% of the total investment. And the security selection component is 0.04% which shows the better performance in comparison to the benchmark. The security selection performance attribution in Brazil is 0.04% which indicates positive return to the overall portfolio.
Canada
The country weighted of my portfolio in Canada is 2.12% and portfolio P/L is 0.80%. The market allocation contribution in -0.11% which indicates stocks performance from Canada negatively affects the global benchmark performance. The security selection contribution is -0.11%. The security selection contribution indicates the stocks are underperformed than the benchmark. The market return component is 0.13% and the security selection component is -0.11% which shows the worse performance in comparison to the…