Portfolio ManagementInvestment Report Group 3 L/O/G/O
Contents Group Profile Contents 1 Contents 2 Investment Policy Contents 3 Investment Environment Portfolio performance Contents 4 Contents 5 Selectivity and Diversification
INVESTMENT POLICY Investment policy • Investments should out-perform the risk-free rate • Pay attention to high quality growth companies out-perform over the long time or those which are being speculated by large-sized funds Investment criteria • Prefer growth and maturity stage companies with a strong track record of a successful history starting or managing • Companies have solid market position in industry • Large capital market • Positive revenue and EAT Exit Strategy • Sell stock when: • Its price is higher beyond than the real value • The price of stock excesses the supporting line • Company’s bad news is public
INVESTMENT ENVIRONMENT • Stock market at the end of 2013 reached good status because of many contributed factors: • Satisfactory results of financial reports in the third quarter • Having higher income and optimistic mind, investors often spend more money in funds than the rest of year • Participation of foreign individual investors or charismatic funds • Positive renovation policies of government
MANAGERS’RISK The risk assumed by an investor that her investment might underperform simply because of mistakes committed by the fund managerwhose decisions and actions may divert from the investors' wishes or reduce the value of an investment portfolio. => Before investing to any fresh investment, spend some time looking into the background of the people who manage it.
INVESTORS’ RISK However, international investors have voiced concerns that the investment climate has deteriorated. Problems include: Corruption Weak legal infrastructure Financial instability Strong Semi-strong form Vietnam market Weak form
PORTFOLIO OVERVIEW Distribution of each industry in capital invested
The recovery of real estate SECTOR FOCUS • The real estate market has improved significantly since early 2013 thanks to the government’s determination and actions. • In November, Vietnam had four new FDI projects in the fields of real estate with a total value of approximately $300 million • The package of 30,000 billion VND for social housing projects of the State
SELECTIVITY AND DIVERSIFICATION based on SML based on CML
SELECTIVITY AND DIVERSIFICATION Selectivity = Actual Result – Theoretical result based on SML Selectivity is 1.29%. It means that that the portfolio’s actual result is higher than its theoretical result based on SML. Using the formula (>0) It shows that that portfolio generates higher profit than according to CAPM theory Diversification = theoretical result based on SML - theoretical result based on CML The difference between theoretical result based on SML and CML is due to the portfolio is not as diversified as the market. 18.595% is the contribution of diversification portfolio.
Thank You! Group 3 L/O/G/O