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Investment Appraisal and Portfolio Management |
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Module code |
INV7REV |
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Level |
7 |
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Module start month and year |
September 2024 |
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Module pass mark |
50 |
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Assignment |
2 |
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Assignment due time and date |
10.00 a.m. (UK time), Wednesday 12 February 2025 |
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Word count (see section below for info) |
3,000 (or equivalent) |
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Assignment weighting |
60% |
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Module learning outcomes assessed |
LO1, LO2, LO3, LO4, LO5 (see Assessment page in Module orientation for details) |
Submission details
For this assignment, you are required to submit online via Turnitin:
a) a report as one PDF file or alternatively as one Word (or similar) file.
Please refer to the relevant Assessment preparation week of the module for further guidance.
If you have any questions about this assignment, please contact your Module Team using the Assignment forum in the relevant Assessment preparation week on the VLE.
Scenario
You are an investment surveyor employed at Wolfhound Real Estate; a Dublin based investment advisory firm in Ireland with offices in London, United Kingdom (UK). Your day-to-day responsibilities include the strategic management of several international investment portfolios for private investor clients.
Your client, DACH Immobilien is based in 1618 Goe Gallusstrae, Frankfurt. They are long-term investors and are generally risk averse regarding their real estate investments. As a result, they generally only acquire Core or Core plus type investments. Ms Barbara Schultz, European Investments Director is your main contact at DACH Immobielen.
As part of your remit for this client, you are responsible for the management of The Albion portfolio, a mixed portfolio of 15 commercial properties in the UK.
Funds of approximately 100,000 are currently available within The Albion fund for indirect property acquisitions in a UK Reit.
The portfolio has high Environmental, Social and Governance (ESG) investment standards therefore only investments with excellent environmental characteristics will be considered suitable for this portfolio.
(Note: these companies are fictitious and were created for this assignment.)
Task
You have been instructed by your client, DACH Immobilien, to prepare a fully referenced client report (with cover letter) giving recommendations and conclusions on the performance of your clients existing investment portfolio (The Albion portfolio).
For The Albion portfolio you should report on:
- the performance of The Albion portfolio (Appendix 2) over the last seven
As part of this performance review, you are required to critically evaluate the portfolios performance against the performance of the in-house All-property index. You should use the actual and target portfolio weightings as part of your analysis of the portfolios performance against the All-property index. You should also analyse the variability/volatility measurements provided as part of this analysis of the sub-sectors within the portfolio.
2. the portfolios current balance of investments across property sub-sectors.
As part of this review, you are required to critically evaluate the portfolios current balance in comparison to the target balance in the benchmark portfolio (MSCI AREF UK Quarterly Property Funds Index Legal & General Managed Fund (2024 Q2)) and make recommendations on how the portfolio should be re-balanced over the next five years to bring its balance more in line with the target balance of the benchmark portfolio.
3. a critical evaluation of Supermarket Income REIT, (Stock exchange symbol: SUPR), a British Real Estate Investment Trust (REIT) listed on London Stock Exchange. Here you are required to undertake a SWOT analysis and make recommendations on whether acquiring shares in this REIT would be a suitable investment opportunity for indirect investment purposes. You should summarise the key features of this REITs strategy on sustainability for its portfolio of properties as part of your evaluation.
An executive summary is required (at least one page in length).
Clearly state any further assumptions you make, which should be realistic.
Reference list and bibliography
You should include a reference list with a minimum of 15 separate relevant and appropriate sources that you have written about and cited within your work.
You should also include a bibliography list with a minimum of 10 separate relevant and appropriate sources that have influenced your thinking but are not cited in your work.
Additional information
As this is a client report we are looking for:
- Cover letter.
- Cover page.
- Table of content
- Executive Summary.
- Body with indexed headings, sub-heading, paragraphs.
- Recommendations/Conclusions.
- References.
- Appendix.
You may also include a glossary which is outside the wordcount.
Your appendix can be divided into the following sections:
- Conflict of Interest Check
- REIT Share Price Analysis
- REIT Analysis of Portfolio Diversification
- Summary profile of REIT Management Team
- SWOT Analysis on REIT
- Primary Research Summary Profile / Consent
- Confirmation of compliance with RICS Statement and guidance notes
Further information to support you with this assignment is available within the study materials for this module on the UCEM VLE.
It is recommended that you engage with the Assignment briefing webinar and Assignment forum, as the module team may signpost relevant learning activities and also answer any questions you may have.
Marking guidance for this activity
This guidance is designed to help you to do as well as possible in your assessment by explaining how the person marking your work will be judging it.
Your work will be assessed in relation to the requirements set out in the assessment criteria marking guide shown below and the grading guidance section below.
It is recommended that you read both of these sections before starting your assessment to learn what will help you to achieve the highest marks. Before submitting your assessment you should review it to check you have produced what is required to achieve the highest marks.
When you receive your feedback from your tutor you should be able to see where you gained marks and, where relevant, recommendations about how to improve your performance going forward.
Grading guidance
This grading guidance section explains in more detail what a submission for this assessmentshould include in order to achieve a mark at the threshold, good and excellent standards.
Threshold
You will have produced a structured report to a professional standard in which you have demonstrated an ability to analyse the performance of a multi-investment portfolio. Your client report will be written in the third person and have no spelling errors. All statements will be substantiated using the UCEM Harvard system of referencing. All assumptions made by you will be explicitly stated as part of your analysis of the Albion portfolio.
You will have produced a detailed executive summary which clearly states the purpose of the report, highlights the key findings and clearly states your recommendations regarding the tasks listed in the assignment brief. A threshold report will contain a mix of graphs, tables, location maps and photos to aid in the presentation of the report.
Good
In addition to meeting the threshold standard you will have analysed the performance of The Albion portfolio over the last seven years. You will have made clear recommendations on how The Albion portfolio should be rebalanced over the next five years.
Your report will have summarised the key features of Supermarket Reit Income, the British REITs sustainability strategy for its portfolio of properties. You will also have created a SWOT table on the REIT and analysed the table to determine if this REIT would be suitable for your client to invest in. The report will also have included a minimum of 15 separate relevant and appropriate sources in the references section and a minimum of 10 separate relevant and appropriate sources in the bibliography.
Excellent
In addition to the achieving the threshold and good standards you will have clearly analysed the risk metrics for the Albion portfolio and given clear conclusions and recommendations based on this analysis and which are clearly linked to your clients attitude to risk and return.
You will also have profiled the management team for the REIT. In addition, you will have displayed originality in your application of knowledge.
Important message from the Module Leader
We are looking for both style and substance in the client report. The standard of presentation will be an important consideration.
You will be marked on what is in the body of the report, but the ancillary sections to the body of the report feed into the report and therefore will indirectly contribute to the overall mark for the assignment.
This assignment has been created by the Module Leader. You should view the Module Leader as one of your key work clients. If you are unsure about any of the points above then contact the Module Leader at the earliest opportunity via VLE messaging, the assignment discussion forum, weekly webinars or drop-in clinics. Please do not e-mail the Module Leader with queries regarding the assignment.
1-2-1 consultations with the Module Leader maybe available if you are really struggling and worried that you may fail the assignment.
Do not rely on messages shared in WhatsApp by fellow students. They can be misleading.
The Module Leader will be generally available during normal working hours on weekdays to support you with any queries that you raise in the assignment forums. You are expected to keep good time management and proactively manage the drafting of your own assignment. You should begin drafting/researching for your client report at least six weeks from the submission deadline. Do not leave assignment questions until the last minute before the submission deadline as there is no guarantee the Module Leader will be able to reply in time.
The Module Leader will not be available to review draft submissions.
Do not be afraid to ask questions in the forums and contact the Module Leader/Tutors directly if you wish to privately raise any concerns about your studies. We are here to help!
The Module Team will be available during normal working hours on weekdays but not weekends.
As a future Chartered Surveyor remember to be professional and observe the RICS codes of conduct. Please treat fellow students and staff with respect at all times.
You are encouraged to work collegiately with each other but you must avoid copying from each other or sharing your submission with each other as this may result in a misconduct case on the grounds of collusion.
Word count and overwriting
Exceeding the stated word count by 10% or more may limit the marks allocated for communication (see the assessment criteria marking guide).
The following table outlines the inclusions and exclusions in the word count of the most common features of assessed pieces of work. Not all these features may be relevant to your assignment; please refer to the assignment task for confirmation of which features are required.
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Included in wordcount |
Excluded from wordcount |
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Introduction |
Executive summary/abstract |
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Main body |
Title page/front cover |
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Footnotes/endnotes |
Contents List |
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In text citations |
Calculations |
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Words in tables |
Drawings/Images |
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Conclusion |
List of references |
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Recommendations |
Bibliography |
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Headings and titles, except for those explicitly excluded |
Appendices |
The total number of words used must be stated on the first page of your assessment.
Academic integrity (avoiding academic misconduct)
It is important that your assessment shows academic integrity. Academic misconduct is a serious offence. Types of misconduct include, but are not limited to: plagiarism, self-plagiarism, collusion, or contracting a third party to write your assessment. You must reference and cite any sources you have used. Before submitting the final version of your assignment, you should upload your work to the Turnitin assignment originality check.
Please see the Assessment preparation week for more information on academic misconduct, including guidance on how to avoid academic misconduct, how to check your work, and how UCEM checks all submitted assessment for academic misconduct.
Appendix 1 The Albion portfolio
A mixed portfolio of mainly retail, office and industrial investment properties across England and Wales, which is currently valued at approximately 2,615,000,000.
Your operational objectives for this portfolio are to:
- assemble a balanced and well-diversified property
- Record overall returns that will outperform the in-house All Property Index.
- Pursue opportunities to purchase or dispose of properties that will maximise the returns of the portfolio at an acceptable level of risk.
- Acquire properties that provide stable income streams, good initial yields and attractive rental/capital growth prospects over the holding periods.
The current portfolio composition/balance (by type and value) of the Albion portfolio is as follows:
Table 1: The Albion Portfolio (Actual Balance)
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Sector |
Actual Balance |
Actual % |
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Retail |
900,000,000 |
34.42% |
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Office |
300,000,000 |
11.47% |
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Industrial |
785,000,000 |
30.02% |
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Other UK Properties |
480,000,000 |
18.36% |
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Cash |
150,000,000 |
5.74% |
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Total |
2,615,000,000 |
100.00% |
(Note: Figures in table 1 subject to rounding).
Further details on the portfolio and performance data for the 7 years period 20172023 are shown below.
You are currently developing a new five-years strategy for the portfolio and have adopted the following target portfolio balance (which is in line with the MSCI AREF UK Quarterly Property Funds Index Legal & General Managed Fund (as at 2024 Q1) (MSCI-AREF 2024)) to be achieved by the end of this period.
Table 2: The Albion Portfolio (Target Balance)
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Sector |
Target % * |
Target Balance |
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Retail |
16.60% |
434,090,000 |
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Office |
17.90% |
468,085,000 |
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Industrial |
36.50% |
954,475,000 |
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Other UK Properties |
18.60% |
486,390,000 |
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Cash |
10.40% |
271,960,000 |
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Total |
100.00% |
2,615,000,000 |
ASSESSMENT CRITERIA MARKING GUIDE
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LEVEL 7 |
Weight- ing % |
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1. COMMUNICATION |
15 |
02 Inadequate |
35 Limited |
67 Below threshold |
8 Threshold |
910 Good |
11 Excellent |
1215 Outstanding |
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Relevance to task The relevance of the information provided to the context of the task The way the needs of the intended audience have been addressed. |
Irrelevant and addresses neither the task nor the needs of the intended audience. |
Largely irrelevant and does not effectively address the task or the needs of the intended audience. |
Partially relevant and attempts to address the task and the needs of the intended audience with significant irrelevance or omissions. |
Sufficiently relevant to the task and the needs of the intended audience to meet the learning outcomes. |
Consistently relevant to the task and focussed on the requirements of the intended audience. |
Highly relevant to the task and precisely focussed on the requirements of the intended audience. |
Completely relevant to the task and fully focussed on the requirements of the intended audience. |
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Structure and presentation Organisation and presentation of ideas |
A lack of structure beyond a loosely connected list of points. |
Largely unstructured and does not have a clear logical flow. |
Inconsistent structure and logical flow. |
Adequate Structure and logical flow. |
Capable structure and logical flow. |
Advanced structure and logical flow. |
Proficient structure and logical flow. |
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Format appropriate to the intended audience and/or industry protocols How structure and presentation enable communication. |
Presentation format is inappropriate.
Communication is obstructed. |
Presentation format is ineffective.
Communication is hindered. |
Presentation format is confused.
Communication is only partially effective. |
Presentation format is satisfactory.
Communication is sufficient to meet the learning outcomes. |
Presentation format is effective.
Communication is sound. |
Presentation format is sophisticated.
Communication is articulate. |
Presentation format is innovative.
Communication is insightful. |
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Grammar Selection of words, sentence construction, spelling and punctuation. |
Use of grammar is deficient and meaning is obstructed. |
Significant grammatical errors and meaning lacks clarity. |
Several grammatical errors and meaning conveyed insufficiently clearly. |
Notwithstanding some minor errors and oversights, grammar and clarity of meaning are sufficient to meet the learning outcomes. |
Grammar usage is capable and conveys meaning effectively. |
Grammar usage is advanced and conveys meaning precisely. |
Grammar usage is exceptional and conveys meaning eloquently. |
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2. KNOWLEDGE AND UNDERSTANDING |
20 |
03 Inadequate |
47 Limited |
89 Below threshold |
1011 Threshold |
1213 Good |
1415 Excellent |
1620 Outstanding |
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Systematic knowledge and understanding of the key aspects of the field of study |
Inadequate systematic knowledge and understanding of the field of study. |
Limited systematic knowledge and understanding of the field of study. |
Insufficient systematic knowledge and understanding of the field of study. |
Sufficient systematic knowledge and understanding of the field of study to meet the learning outcomes. |
Good systematic knowledge and understanding of the field of study to meet the learning outcomes. |
Excellent systematic knowledge and understanding of the field of study to meet the learning outcomes. |
Outstanding systematic knowledge and understanding of the field of study to meet the learning outcomes. |
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Critical awareness of current problems and/or new insights at or informed by the forefront of the academic discipline |
Inadequate level of critical awareness of current problems and/or new insights, very little, if any, of which has been informed by the forefront of the academic discipline. |
Unsatisfactory level of critical awareness of current problems and/or new insights, little of which has been informed by the forefront of the academic discipline. |
Basic level of critical awareness of current problems and/or new insights, some of which has been informed by the forefront of the academic discipline. |
Adequate level of critical awareness of current problems and/or new insights, much of which has been informed by the forefront of the academic discipline. |
Sound level of critical awareness of current problems and/or new insights, most of which has been informed by the forefront of the academic discipline. |
Comprehensive level of critical awareness of current problems and/or new insights, nearly all of which has been informed by the forefront of the academic discipline. |
Exceptional level of critical awareness of current problems and/or new insights, all of which has been informed by the forefront of the academic discipline. |
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3. USE AND APPLICATION OF SOURCE MATERIAL |
20 |
03 Inadequate |
47 Limited |
89 Below threshold |
1011 Threshold |
1213 Good |
1415 Excellent |
1620 Outstanding |
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Application of UCEM Harvard referencing style |
A minimal number of sources have been referenced. The referencing system is applied incoherently. |
Referencing is unsatisfactory due to significant omissions, inaccuracies or inconsistencies in the application of the referencing system. |
Referencing is insufficient due to several omissions, inaccuracies or inconsistencies in the application of the referencing system. |
Referencing is sufficiently complete, accurate and consistent in the application of the referencing system to meet the learning outcomes. |
Referencing is competent with mostly complete, accurate and consistent application of the referencing system. |
Referencing is comprehensive with complete, accurate and consistent application of the referencing system with minimal errors. |
Referencing is comprehensive and applied faultlessly. |
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Source Materials |
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Selection of course materials |
Minimal and incoherent selection of course materials. |
Ineffective selection of course materials with significant omissions. |
Inconsistent and inaccurate selection of course materials. |
Adequate selection of course materials. |
Competent selection of course materials. |
Sophisticated selection of course materials. |
Innovative selection of course materials. |
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Independent research |
Independent research is minimal and has not been informed by scholarship at the forefront of the academic discipline. |
Independent research is incomplete and unsatisfactory. It has not been informed by any notable scholarship at the forefront of the academic discipline. |
Independent research is basic and has partially been informed by appropriate scholarship at the forefront of the academic discipline. |
Independent research is sufficient and has been at least partially informed by appropriate scholarship at the forefront of the academic discipline, sufficient to meet the learning outcomes. |
Independent research is competent and has been informed by a reasonable amount of appropriate scholarship at the forefront of the academic discipline. |
Independent research is advanced and has been informed by a comprehensive range of authoritative scholarship at the forefront of the academic discipline. |
Independent research is proficient and has been informed by the full range of authoritative scholarship at the forefront of the academic discipline. |
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Use of industry practice and personal experience. |
Industry practice and personal experience omitted or irrelevant. |
Limited and incomplete reference to industry practice and personal experience. |
Simple reference to industry practice and personal experience. |
Satisfactory reference to industry practice and personal experience. |
Clear reference to industry practice and personal experience. |
Perceptive reference to industry practice and personal experience. |
Insightful reference to industry practice and personal experience. |
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Originality in the application of knowledge |
Originality in the application of knowledge is inadequate and incoherent. The assessed work is not informed or improved by the source materials. |
Originality in the application of knowledge is ineffective and unsatisfactory. The assessed work is informed and improved in a limited manner by the source materials. |
Originality in the application of knowledge is inconsistent and partial. The assessed work is informed and improved in a basic manner by the source materials. |
Originality in the application of knowledge satisfactory and adequate. The assessed work is informed and improved in an adequate manner by the source materials, sufficient to meet the learning outcomes. |
Originality in the application of knowledge is competent and clear. The assessed work is informed and improved in a reasonable manner by the source materials. |
Originality in the application of knowledge is perceptive and accurate. The assessed work is informed and improved in a comprehensive manner by the source materials. |
Originality in the application of knowledge is innovative and insightful. The assessed work is informed and improved in an exceptional manner by the source materials. |
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4. EVIDENCE BASED CRITICAL ANALYSIS |
20 |
03 Inadequate |
47 Limited |
89 Below threshold |
1011 Threshold |
1213 Good |
1415 Excellent |
1620 Outstanding |
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Practical understanding of how established techniques of research and enquiry are used to create and interpret knowledge |
Minimal understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
Unsatisfactory understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
Insufficient understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
Sufficient understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
Effective understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
Sophisticated understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
Insightful understanding of how established techniques of research and enquiry are used to create and interpret knowledge. |
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Critical analysis Analysis of source materials |
Analysis of the source materials is superficial, deficient or minimal |
Analysis of the source materials is shallow ineffective or incomplete. |
Analysis of the source materials is insubstantial, inaccurate or inconsistent. |
Analysis of the source materials is adequate and of sufficient depth to meet the learning outcomes. |
Analysis of the source materials is substantial clear and competent. |
Analysis of the source materials is rigorous, accurate and comprehensive. |
Analysis of the source materials is profound, proficient and very advanced. |
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Application of analysis to the demands of the task |
Analysis is not applied to the demands of the task. |
Analysis is applied unsatisfactorily to the demands of the task. |
Analysis is partially applied to the demands of the task. |
Analysis is satisfactorily applied to the demands of the task. |
Analysis is reasonably applied to the demands of the task. |
Analysis is perceptively applied to the demands of the task. |
Analysis is innovatively applied to the demands of the task. |
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Development of arguments Use of analysis to develop and sustain arguments and justifications. |
Arguments and justifications are incoherent and deficient. There is minimal evidence of an attempt to develop or sustain an argument. |
Arguments and justifications are unsatisfactory and ineffective. The development of arguments is incomplete and not sustained. |
Arguments and justifications are confused and inaccurate. The development of arguments is inconsistent and partially sustained with significant omissions. |
Arguments and justifications are satisfactory and sufficient to meet the learning outcomes. The development of arguments is basic and sustained adequately. |
Arguments and justifications are clear and reasonable. The development of arguments is fair and sustained competently. |
Arguments and justifications are advanced and sophisticated. The development of arguments is sophisticated and sustained comprehensively. |
Arguments and justifications are ambitious and exceptional. The development of arguments is insightful and fully sustained. |
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Technical ability (where appropriate) Quality of drawings OR |
Drawings are incorrect or omitted |
Drawings are incomplete or with significant omissions |
Drawings are inaccurate and only partially completed |
Drawings are completed at a basic level sufficient to meet the learning outcomes. |
Drawings are completed at a competent level |
Drawings are completed accurately |
Drawings are completed to an exceptionally high standard |
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Accuracy of calculations OR |
Calculations are incorrect or omitted |
Calculations are incomplete with significant omissions |
Calculations are inaccurate and only partially completed |
Calculations are completed at a basic level sufficient to meet the learning outcomes. |
Calculations are completed at a competent level |
Calculations are completed accurately |
Calculations are completed to an exceptionally high standard |
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Appropriate selection and application of information. |
Selection of information is incorrect or minimal. Information is applied inadequately or incoherently to the task. |
Selection of information is incomplete with significant omissions. Information is applied ineffectively or unsatisfactorily to the task. |
Selection of information is inconsistent and partial. Information is applied inaccurately to the task. |
Selection of information is satisfactory and sufficient to meet the learning outcomes. Information is applied adequately to the task. |
Selection of information is clear and reasonable. Information is applied competently to the task. |
Selection of information is accurate and comprehensive Information is applied perceptively to the task. |
Selection of information is proficient and insightful Information is applied innovatively to the task. |
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5. INSIGHT, INTERPRETATION AND EVALUATION |
25 |
04 Inadequate |
59 Limited |
1012 Below threshold |
1314 Threshold |
1517 Good |
1819 Excellent |
2025 Outstanding |
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Systematic and creative approaches to complex issues |
Inadequate self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. |
Ineffective self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. |
Insufficient self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. |
Sufficient self-direction and originality in tackling and solving problems and in implementing tasks at a professional level to meet the learning outcomes. |
Competent self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. |
Successful self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. |
Exceptional self-direction and originality in tackling and solving problems and in implementing tasks at a professional level. |
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Critical evaluation of current research and advanced scholarship in the discipline |
Any evaluation of current research and advanced scholarship in the discipline is unsubstantiated and unstructured. |
Evaluation of current research and advanced scholarship in the discipline is unsatisfactory in its reasoning. |
Evaluation of current research and advanced scholarship in the discipline is simple in its reasoning. |
Evaluation of current research and advanced scholarship in the discipline is adequate in its reasoning. |
Evaluation of current research and advanced scholarship in the discipline is competent in its reasoning. |
Evaluation of current research and advanced scholarship in the discipline is sophisticated in its reasoning. |
Evaluation of current research and advanced scholarship in the discipline is ambitious and convincing in its reasoning. |
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Judgements in the absence of incomplete data |
Judgments in the absence of incomplete data and/or conclusions are deficient. |
Judgments in the absence of incomplete data and/or conclusions are inaccurate. |
Judgments in the absence of incomplete data and/or conclusions are confused. |
Judgments in the absence of incomplete data and/or conclusions are satisfactory and sufficient to meet the learning outcomes. |
Judgments in the absence of incomplete data and/or conclusions are clear and appropriate. |
Judgments in the absence of incomplete data and/or conclusions are perceptive. |