Research Criteria of Investment Management Firms
Mukhin, Danil (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023121236424
https://urn.fi/URN:NBN:fi:amk-2023121236424
Tiivistelmä
This bachelor’s thesis was conducted for the International Business Degree Programme with a major in Finance and Accounting. This author delves into the multifaceted criteria employed by investment management companies in the selection of companies for investment portfolios. The focus is to uncover the nuanced interplay and relative importance of each referenced criterion in shaping investment decisions.
The thesis focuses on eight key dimensions: financial performance, valuation, competitive advantage, corporate governance, environmental, social, and governance (ESG) factors, management quality, industry trends, and regulatory compliance. These factors have been carefully chosen to be discussed in this thesis as the main criteria after conducting the aforementioned research. The author answers the investigative questions throughout the thesis which is followed by an explanation of the research methodology and ending with the conclusion and list of references.
The research employs an approach comprised of desktop data collection as secondary re search and interviews with employees of the investment management field as primary research. The secondary data was gathered from e-books, academic articles, company reports and journals. The primary research consisted of an interview that have been conducted with 6 individuals relevant to the topic as they are directly involved in the investment management field. As a result, the findings from the interviews supported the secondary research and helped answer the investigative questions.
The author concludes by synthesizing findings across these criteria, offering the highlights of what has been discussed concerning each criterion. Criteria such as financial performance, valuation, the right corporate governance and management quality and level of adaptability to regulations were found to be of paramount importance when selecting companies. Factors relating to competitive advantage and industry trends were just as vital but often deemed not a direct priority. ESG is found to be rising in interest overall and the interviewees supported the aspect of ESG and robust investing strongly.
By understanding the dynamic interplay of financial, strategic, and ethical factors, investors and individuals with any kind of interest in this field, professional or otherwise, can educate themselves more on the perspective of an investment management firm and other companies can get more insight into how these investment companies decide and perceive businesses around them.
The thesis focuses on eight key dimensions: financial performance, valuation, competitive advantage, corporate governance, environmental, social, and governance (ESG) factors, management quality, industry trends, and regulatory compliance. These factors have been carefully chosen to be discussed in this thesis as the main criteria after conducting the aforementioned research. The author answers the investigative questions throughout the thesis which is followed by an explanation of the research methodology and ending with the conclusion and list of references.
The research employs an approach comprised of desktop data collection as secondary re search and interviews with employees of the investment management field as primary research. The secondary data was gathered from e-books, academic articles, company reports and journals. The primary research consisted of an interview that have been conducted with 6 individuals relevant to the topic as they are directly involved in the investment management field. As a result, the findings from the interviews supported the secondary research and helped answer the investigative questions.
The author concludes by synthesizing findings across these criteria, offering the highlights of what has been discussed concerning each criterion. Criteria such as financial performance, valuation, the right corporate governance and management quality and level of adaptability to regulations were found to be of paramount importance when selecting companies. Factors relating to competitive advantage and industry trends were just as vital but often deemed not a direct priority. ESG is found to be rising in interest overall and the interviewees supported the aspect of ESG and robust investing strongly.
By understanding the dynamic interplay of financial, strategic, and ethical factors, investors and individuals with any kind of interest in this field, professional or otherwise, can educate themselves more on the perspective of an investment management firm and other companies can get more insight into how these investment companies decide and perceive businesses around them.