Feature Article: How to Optimise Asset Investment Strategies to Maximise ValueBy Copperleaf
Engerati has published a great article on how Asset Investment Planning and Management (AIPM) solutions can help asset managers decide which investments will deliver the maximum value to their organization.
In this article, they highlight Copperleaf’s optimisation game. Using a sample portfolio with four investment options, the objective is to identify the portfolio that achieves the maximum return with a fixed budget. The game demonstrates that using manual ranking methods will rarely produce the best possible combination of investments. The solution? A mathematical optimization technique that analyses the problem and determines the optimal solution.
“Optimisation iterates through every possible combination of investment options, then selects the highest-value solution that honours all constraints.”
The goal of optimisation is to maximize portfolio value, but each organization has its own unique way of defining value. Engerati explains how a Value Framework evaluates the benefits of every investment on a normalised currency-neutral scale. This empowers organizations to compare diverse investments and make risk-informed and evidence-based trade-off decisions.
To learn more about optimisation, check out the recent study that quantifies the benefits of investment portfolio optimisation versus prioritisation. You might also be interested in this case study on how Hydro One improved its planning and investment optimisation processes.