Asset Management Portfolio
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Asset Management Portfolio

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Asset Management Portfolio Asset Management Portfolio Presentation Transcript

  • ASSET MANAGEMENT PORTFOLIO ASSET MANAGEMENT PORTFOLIOSTRAINING SESSION FOR DEPT. OF FOREIGN INVESTMENTS
    VENUE: TIIB – HEAD OFFICE
    QUANTITATIVE RISK ANALYTICS DESK
    SYED ADEEL HUSSAIN
    • Asset Management (proprietary funds) portfolio of TIIB consists of the following:
    • Equity Securities – Common Stocks
    • Fixed Income Securities - Sukuks
    • Equity Mutual Funds - TEF (Tadhamon Equity Fund )
    • REITS – Real Estate Funds
  • Foreign Investments Dept. Analyst analyzes the Portfolio underlying investments using either :
    Top Down Approach
    Bottom Up
    Approach
    • Stages of Investment Portfolio Management
    • Investment Screening
    • Investment Selection
    • Investment Allocation
    • Investment Trading and Market Timing
    • Investment Performance & Risk Review
    • Investment Portfolio Rebalancing
    • Screening and Selection (Bottom Up Approach)
    • Expected Return and Risk Analysis of the Investment
    • Issuer/ Firm Specific Risk and Profile
    • Business Model Evaluation and Outlook
    • Industry Outlook
    • Macroeconomic Outlook
    • Screening and Selection (Top Down Approach)
    • Macroeconomic Outlook
    • Industry Outlook
    • Business Model Evaluation and Outlook
    • Firm and Issuer Specific Analysis
    • Expected Return and Risk Analysis of the Investment
    • Allocation of Portfolio Investments
    • Allocation always follows selection
    • Allocation should be made to the portfolio based on factors such as:
    • Portfolio’s Market Risk to Reward Ratio
    • Expected returns of the portfolio
    • Correlation between assets
    • Overall Diversification of Portfolio
    • Weighted Cost of Funds Analysis
    • Assign Final Weightage (Relative and Absolute)
    • Portfolio Investments Trading :
    • Upside Momentum Driven Trading (buying & selling during market rallying periods)
    • Bottom Fishing (buying & selling assets during or after market crash)
    • Range Bound Trading (buying & selling at regular normal price intervals)
    • Portfolio Investment Style :
    • Active vs. Passive Portfolio Management
    • Active Management is done by fund managers to outperform the benchmarks and their peers in the industry
    • Passive Management is simply buy and hold strategy implemented by tracking benchmark returns
    • Portfolio Investments Performance and Risk Reviews :
    • All analysts’ should conduct outstanding position analysis within each portfolios expressed in percentages in relation to:
    Tier 1 capital
    Paid Up Capital
    ii. Total Assets
    Total Capital Employed
    Total Investments
    • Time Value of Money adjusted Returns should be calculated using IRR and NPV techniques
    • Compliance with all Internally approved and external regulatory procedures and policies should be check listed
    • Prepare reports with recommendations to buy , hold or sell
    • Portfolio Investments Rebalancing
    • An Actively Managed portfolio should be rebalanced as per targeted strategy
    • A Passively Managed Portfolio should not be frequently rebalanced
    • Trading costs and benefits should be analyzed at the time of increasing portfolio turnover ratio
    • An analyst should continuously trigger rebalancing only within the framework of universe of investments
    • Actual and Budgeted targets should be studied . Variances , if any , should be calculated and minimized accordingly.