Investment universe
The investment universe ( english investment universe ) describes the scope of all investment opportunities from which a portfolio manager (for example, a fund manager can select) in its investment decision. The term is important, among other things, in portfolio management .
Definition and use of terms
There is no legal definition of the term. The term is regularly used in connection with investment decisions in the context of portfolio selection and portfolio management . The concept of portfolio can be seen here for a long time. Due to the theoretical prerequisites of portfolio theory and the assumptions regarding a perfect market, regularly tradable capital goods are relevant in practice and therefore also the subject of scientific investigation. In principle, however, the investment horizon does not only describe tradable forms of investment, but applies to all asset classes. This means that there are no restrictions on certain types of investment or asset classes. The availability and fungibility , such as B. admission to a regulated market is not an exclusion criterion - even if the focus is mostly on exchange-traded asset classes .
Objective classification
The investment universe is part of the portfolio selection. A first general selection is made based on the universe of securities, i.e. all available investment options. The selection or reduction of candidates from the title universe can be carried out using various methods, e.g. B. Best-in-class, Negative Selection, Positive Selection. The aim of all procedures is to define suitable title candidates. Selection based on one or more indices, for example DAX or MSCI World, is common . However, a selection can also be made via industries or ethical, ecological and social criteria such as the UN Principles for Responsible Investment .
Next, the title candidates are subjected to a detailed financial analysis. Only stocks are included in the investment universe if they have a positive forecast regarding their performance. The investment universe is thematically closely linked to investor analysis as part of the portfolio management process. The structuring of the investment universe is therefore always closely based on the investment preferences of (potential) investors. After the investment universe has been determined, the portfolio is then structured (also known as investment allocation).
Individual evidence
- ↑ Jan Scharlau: Socially responsible investment: the German and European legal framework , 2009, p. 18 f.
- ↑ Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), Sustainable and Responsible Investing - A Guide , 2012, p. 24, https://www.bvi.de/fileadmin/user_upload/Regulierung/UNPRI.pdf , accessed on 2. November 2017.
- ↑ Jan Scharlau: Socially responsible investment: the German and European legal framework , 2009, p. 19.
- ↑ Jan Scharlau: Socially responsible investment: the German and European legal framework , 2009, p. 24 f.
- ↑ Georg Bol, Gholamreza Nakhaeizadeh, Karl-Heinz Vollmer: "Datamining and Computational Finance: Results of the 7th Karlsruhe Econometrics Workshop", 2013, p. 175.