Title: Corporate asset management - an integrated model for investment portfolio assessment

Authors: Minna Räikkönen; Helena Kortelainen; Susanna Kunttu; Kari Komonen

Addresses: VTT Technical Research Centre of Finland Ltd., P.O. Box 1300, FI-33101 Tampere, Finland ' VTT Technical Research Centre of Finland Ltd., P.O. Box 1300, FI-33101 Tampere, Finland ' HappyOrNot Ltd., Vuolteenkatu 20, FI-33100 Tampere, Finland ' Promaint ry, Messuaukio 1, FI-00520 Helsinki, Finland

Abstract: Assessing the value of investments can be considered a multidimensional problem and a continuous process wherein the decision-maker is confronted with multiple needs, requirements and values. Thus, all investments and investment portfolios should be evaluated, selected and prioritised not only in terms of money, but also with regard to dependability, sustainability and other aspects to be able to form the optimal investment portfolio. This paper proposes a life-cycle cost-oriented portfolio analysis model that will better serve investment decision-making in the capital-intensive industry. The conceptual model includes economic assessment, risk assessment, as well as strategic and technical analyses. From a long-term perspective, applying a more integrated approach to investment portfolio assessments generates several benefits, including advancing companies' and stakeholders' abilities to manage investments and to support the goal of sustainable business growth.

Keywords: asset management; portfolio management; investment; investment portfolio; life-cycle costing; life-cycle cost; life-cycle profit; financial assessment; investment appraisal; decision-making.

DOI: 10.1504/IJSEAM.2020.111424

International Journal of Strategic Engineering Asset Management, 2020 Vol.3 No.4, pp.312 - 329

Accepted: 21 Nov 2019
Published online: 26 Nov 2020 *