Final Presentation for Investments

1. SEMI-CONSERVATIVE
FINAL REPORT
Brooke and Al l ison

2. AGENDA
Asset allocation strategy
Diversification
Buy/Sell Limit strategy
Final portfolio securities
 Individual returns
Overall portfolio ratios
Benchmarking against indices
Conclusion

3. ASSET ALLOCATION STRATEGY
 Stocks
More in large cap than medium and small cap
More in domestic than international
Diversified sectors
More money in less risky sectors
Mutual Funds
Used to diversify our portfolio more
Able to diversify with an acceptable level of risk
 Bonds
We calculated duration to find volatility
 Put more money in bonds with more volatility

4. DIVERSIFICATION
 Used diversification to minimize portfolio risk.
 Spread the money we had to invest throughout the
dif ferent industry sectors.
 Dif ferent weights for securities explain how we
diversified.
Congl Financial Consum H.C. Indust
rial
Service
s
Tech Util Bas
Mat
Transp Ener
gy
$Value 89,987 36,014 48,072 36,002 69,881 59,967 36,108 96,012 84,004 77481 0
% of
each
sector
.1420 .0568 .0758 .0568 .1103 .0946 .0569 .1515 .1325 .1223 0

5. DIVERSIFICATION
Mutual Fund Amount Invested % of Total Amount Invested
American Beacon Bridgeway Lg
Cp Val Inv
$90,000 30%
AmericaFirst Quantitative
Strategies A
$45,000 15%
Fidelity Advisor Real Estate
Income C
$45,000 15%
BBH Core Select N $24,000 8%
Franklin Intl Small Cap Growth
Adv
$24,000 8%
AllianceBern High Income $24,000 8%
Akre Focus Retail $18,000 6%
API Efficient Frontier Growth A $18,000 6%
T. Rowe Price Small-Cap Stock $12,000 4%

6. DIVERSIFICATION
Name Price Paid Last Price Return % Total
Profit/Loss
T-Bond 1,441.70 1,444.10 .17% 129.60
Microsoft 1,036.03 1,037.50 .14% 55.86
United
Technologies
Corp.
1,338.48 1,339. .04% 54.60
Wal-Mart 1,133.92 1,129.82 (.36%) (504.30)

7. BUY/SELL LIMIT STRATEGY
Main goal was to avoid losing money and make a
profit.
Buy limits
Helped us gain money by getting a cheaper price for
stocks.
Sell Stops
 Stopped us from losing any more money if they price
dropped.
Sell Limits
 Set at a high price to lock in profits.
We did not set any buy stops.

8. FINAL LIST OF SECURITIES
 Mutual Funds:
 American Beacon
Bridgeway
 AmericaFirst
Quantitative
Strategies
 Fidelity Advisor Real
Estate Income
 BBH Core Select
 Franklin intl Small
Cap Growth Adv
 AllianceBern High
Income
 Akre Focus Retail
 API Efficient Frontier
Growth
 T. Rowe Price Small -
Cap Stock
 AT&T
 Tenar is SA
 Union Elect r ic Company
 Union Paci f ic Corporat ion
 Uni ted Technologies
Corp.
 Var ian Medical Systems,
Inc.
 Ver izon Communicat ions
 Walgreen Co.
 S t o cks :
 Automat ic Data Processing
 Ai r Methods Corp.
 Potash Corp. of Saskatchewan
 D i l l a r d ’ s I n c .
 Duke Energy Corporat ion
 Coca-Cola Enterpr ises
 Computer Sciences Corporat ion
 Exelon Corporat ion
 Skystar Bio Pharmaceut ical
Company
 Br i t ish Amer ican Tobacco plc.
 Af lac
 Caterpi l lar
 Celanese Corporat ion
 Comcast Corporat ion
 Canadian Nat ional Rai lway
 Cisco
 D i c k ’ s S p o r t i n g G o o d s
 Emerson Elect r ic Co.
 3M
 Noble Corp.
 Sherwin-Wi l l iams
 Bonds:
 Treasury Bond
 Microsoft Corp.
 Wal-Mart Stores,
Inc.
 United
Technologies
Corp.

9. INDIVIDUAL SECURITY RETURNS
3 Highest Returns
Name Price Paid Last Price Return % Total Profit/Loss
EXC 29.88 36.18 21.08% 5972
CAT 89.55 105.30 17.59% 6142
WAG 59.08 67.32 13.95% 2694
3 Lowest Returns
Name Price Paid Last Price Return % Total Profit/Loss
CCE 47.06 45.54 (3.23%) (577)
VAR 82.48 79.75 (3.81%) (682)
CMCSA 53.59 51.55 (5.48%) (191)

10. INDIVIDUAL SECURITY RETURNS
 Majority of stocks are making us profits
 24 out of 30
 We would have hopes that the 6 that are down would go back
up if we were to hold on to the stocks longer
 We we re re l u c t ant to l o c k i n a l o s s o n t h o s e 6 s to c k s t h a t ’ s
why we kept them as long as we did
 Our bonds are mostly up as wel l
 75% are making us returns

11. PORTFOLIO RATIOS
Sharpe: 1.70
Return: 2.9%
Beta: .95
 Very close to 1 so fits with semi-conservative.
Alpha: 2.79%

12. COMPARISON TO INDICES
 Our return is consistently higher when compared to
the DJIA, NASDAQ, and S&P 500.
We compared our portfolio to HIS (China) and EAFE
(Europe, Australia, and Far East) indices to get a
better idea of international per formance.
When compared to EAFE over three months:
 Our portfolio is less volatile.
 Higher return in general; currently has a higher return.

13. COMPARISON TO EAFE 3 MONTHS

14. COMPARISON TO DJIA 1 MONTH

15. COMPARISON TO DJIA 3 MONTHS

16. CONCLUSION
 Ended up with a por tfol io value of 1,030,847.77
 Had a 2.9% return on our investment
 We would keep our strategy and diversification the same if we
did it again
 The main thing we would l ike to change is the time frame
 We would invest more money in bonds and stocks
 I f we managed this por tfol io for 3 years
 Make more use of buy and sell stops and limits
 Taken on slightly more risk in individual stocks
 Focus on long term returns rather than short term profits

17. THANK YOU!
QUESTIONS/COMMENTS?