MPA 210 Strategic Planning

1. Prepared By:
Ma. Fatima C. Balaoing
Investment
Programming

2. INVESTMENT PROGRAMMING
 An investment program represents the planned or budgeted costs for
the capital investments (or other projects) of an enterprise or corporate
group in the form of a hierarchical structure.
 In general, to invest is to distribute money in the expectation of some
benefit in the future – for example, investment in durable goods, in real
estate by the service industry, in factories for manufacturing, in product
development, and in research and development. However, this article
focuses specifically on investment in financial assets.

3. INVESTMENT PROGRAMMING PROCESS
1. Project Identification
in identifying projects, meeting of development needs and solving problems and
constraints are taken into account.
2. Project Integration
refers to the unification of various sets of programs, projects and activities in the
institution to achieve efficiency, effectiveness, unity, cohesiveness, and
complementarily.

4. Specific types of Investments in
Investment Programming
1. Stocks
 Companies sell shares of stock to raise money for start-up or growth.
When you invest in stocks, you’re buying a share of ownership in a
corporation. You’re a shareholder.
There are two types of stock:
a. Common stock. Shareholders have a percentage of ownership,
have the right to vote on issues affecting the company and may receive
dividends.
b. Preferred stock. Shareholders are generally entitled to dividends
at specified intervals and in predetermined amounts, but they don’t
typically have voting rights.
 Investment returns and risks for both types of stocks vary,
depending on factors such as the economy, political scene, the
company's performance and other stock market factors.

5. 2. Bonds
 When you buy a bond, you’re lending money to a company or governmental
entity, such as a city, state or nation.
 Bonds are issued for a set period of time during which interest payments are
made to the bondholder. The amount of these payments depends on the
interest rate established by the issuer of the bond when the bond is issued.
This is called a coupon rate, which can be fixed or variable. At the end of the
set period of time (maturity date), the bond issuer is required to repay the
par, or face value, of the bond (the original loan amount).
 Bonds are considered a more stable investment compared to stocks
because they usually provide a steady flow of income. But because they’re
more stable, their long-term return probably will be less when compared to
stocks. Bonds, however, can sometimes outperform a particular stock’s rate
of return.
 Keep in mind that bonds are subject to a number of investment risks
including credit risk, repayment risk and interest rate risk.

6. 3. Cash equivalent
 Cash equivalent investments protect your original
investment and let you have access to your money.
Example include:
a. Savings accounts
b. Money market accounts
c. Certificates of deposit (CDs)
 These different types of investments generally deliver
a more stable rate of return. But cash equivalent
investments aren’t designed for long-term investment
goals such as retirement. After taxes are paid, the rate
of return is often so low that it doesn’t keep pace with
inflation.

7. Other Types of Investments
1. Investment Funds
 Funds—such as mutual funds, closed-end funds and exchange-traded funds—pool
money from many investors and invest it according to a specific investment strategy.
Funds can offer diversification, professional management and a wide variety of
investment strategies and styles. But not all funds are the same.
2. Retirement
 Numerous types of investments come into play when saving for retirement and
managing income once you retire.
3. Insurance
 Life insurance products come in various forms, including term life, whole life and
universal life policies. There also are variations on these—variable life insurance and
variable universal life—which are considered securities.

8. How Investment Programming is
related to Development Planning
Process and Strategic Planning
Process Model

9. Development Planning Process Model has
eight steps.
1. Situational analysis
2. Goal/objectives/target setting
3. Policy/ Strategy Formulation
4.Program/ Project Identification
5. INVESTMENT PROGRAMMING
6. Budgeting
7. Implementation and monitoring
8. Evaluation and plan update

10. 1. Situational analysis
 Require the conduct of survey and research study.
2. Goal/objectives/target setting
 Goal- is a broad statement of an image of the future the organization seeks to achieve.
 Objection-which emanates from the goal , refers to medium range expectation which is
pursued to satisfy the goal.
 Target-the most specific statement of purpose which is measurable and achievable.
3. Policy/ Strategy Formulation
 more specific policy and strategies formulated for each area of concern to as social
economic,physical,political, and developmental administrative aspects for a particular period.
4. Program/ Project Identification
 Prioritization of program and project is done through the conduct of studied to a listing of
priorities viewed as responsive to the development needs of the people.
Development Planning Process Model

11. 5. INVESTMENT PROGRAMMING
6. Budgeting
 The costing of identified priority program and projects.
7. Implementation and monitoring
8. Evaluation and plan update
 Results, in terms of outputs, after a year of implementation, and outcomes.
These outputs are feed backed to managers and planners for decision-making
and planning process of updating the plan.

12. Development Planning Process Model (NEDA,2001)

13. Steps in Strategic Planning Process Model
1. Organizational and Staffing
a.training
2. Environmental Scanning
a.internal
b.external
c.S.W.O.T
d.frame
3. Vision
a.mission
b.goals
c.objectives
d.targets
4. Policy/Strategy Information
5. Program/Project Identification
a.project preparation

14. 6. INVESTMENT PROGRAMMING
7. Budgeting
8. Implementation
9. Explanation Plan Update
10. Effect Impact
11. Outcome

16. Updated Philippine Development Plan
Global Economic Growth, 2000-2020
Source: World Bank (2018c).

17. Updated Philippine Development Plan
Real GDP Growth Rates, 2015-2020
Source: World Bank (2018b), World Bank (2018c), World
Bank (2018d).

18. Sustained Economic Growth Makes It Likely That Poverty Reduction Will
Continue (2006-2020)
Source: PSA, World Bank staff estimates
Updated Philippine Development Plan

19. The Role of Risk-taking in Investment Strategy
 Risk is a huge component of an investment strategy. Some
individuals have a high tolerance for risk while other
investors are risk-averse. One overarching rule, however, is
that investors should only risk what they can afford to lose.
Another rule of thumb is the higher the risk, the higher the
potential return, and some investments are riskier than
others. There are investments that guarantee an investor will
not lose money, but there will also be minimal opportunity to
earn a return.

20. Resources
https://help.sap.com/doc/saphelp_470/4.7/en-US/2a/f9f2b3493111d182b70000e829fbfe/content.htm?no_cache=true
https://en.wikipedia.org/wiki/Investment
https://www.nationwide.com/investment-types.jsp
https://www.bigsocietycapital.com/what-we-do/champion/social-impact-tools/best-practice-investors/step-5-investment-decision-
making
http://www.finra.org/investors/types-investments
https://www.bigsocietycapital.com/what-we-do/champion/social-impact-tools/best-practice-investors/step-5-investment-decision-
making
https://www.investopedia.com/terms/i/investmentstrategy.asp

21. THANK YOU 