The Portfolio Management Process
PORTFOLIO MANAGEMENT
OUTLINE (PART ONE):
I. The Rationale for Portfolio Management;
II. Investor Objectives and Constraints;
III. Risk and Return Profile of Philippine Financial Assets;
IV. Traditional Portfolio Management;
V. Modern Portfolio Theory;
VI. Implications of Diversifications on Portfolio Management; and
VII. Investing in Managed Portfolios.
I. The Rationale for Portfolio Management:
a.) To balance investor objectives and available investment opportunities;
b.) b) To provide investors a framework and techniques for selecting various instruments available or a portfolio that best meets the overall objectives and constraints of an investor.
The Portfolio Management Process
The portfolio management process is the process an investor takes to aid him in meeting his investment goals.
The procedure is as follows:
• Create a Policy Statement -A policy statement is the statement that contains the investor’s goals and constraints as it relates to his investments.
• Develop an Investment Strategy - This entails creating a strategy that combines the investor’s goals and objectives with current financial market and economic conditions.
• Implement the Plan Created -This entails putting the investment strategy to work, investing in a portfolio thatmeets the client’s goals and constraint requirements.
• Monitor and Update the Plan -Both markets and investors’ needs change as time changes. As such, it is important to monitor for these changes as they occur and to update the plan toadjust for the changes that have occurred.
Policy Statement
A policy statement is the statement that contains the investor’s goals and constraints as it relates to his investments. This could be considered to be the most important of all the steps in the portfolio management process. The statement requires the investor to consider his true financial needs, both in the short run and the long run. It helps to guide the investment portfolio manager in
OUTLINE (PART ONE):
I. The Rationale for Portfolio Management;
II. Investor Objectives and Constraints;
III. Risk and Return Profile of Philippine Financial Assets;
IV. Traditional Portfolio Management;
V. Modern Portfolio Theory;
VI. Implications of Diversifications on Portfolio Management; and
VII. Investing in Managed Portfolios.
I. The Rationale for Portfolio Management:
a.) To balance investor objectives and available investment opportunities;
b.) b) To provide investors a framework and techniques for selecting various instruments available or a portfolio that best meets the overall objectives and constraints of an investor.
The Portfolio Management Process
The portfolio management process is the process an investor takes to aid him in meeting his investment goals.
The procedure is as follows:
• Create a Policy Statement -A policy statement is the statement that contains the investor’s goals and constraints as it relates to his investments.
• Develop an Investment Strategy - This entails creating a strategy that combines the investor’s goals and objectives with current financial market and economic conditions.
• Implement the Plan Created -This entails putting the investment strategy to work, investing in a portfolio thatmeets the client’s goals and constraint requirements.
• Monitor and Update the Plan -Both markets and investors’ needs change as time changes. As such, it is important to monitor for these changes as they occur and to update the plan toadjust for the changes that have occurred.
Policy Statement
A policy statement is the statement that contains the investor’s goals and constraints as it relates to his investments. This could be considered to be the most important of all the steps in the portfolio management process. The statement requires the investor to consider his true financial needs, both in the short run and the long run. It helps to guide the investment portfolio manager in