Investment Portfolio

BY

Ass. Prof. Vu Ngoc

Xuan, National
Economics University
 Mission Statement

 Our mission is to construct a portfolio of the safest holdings

with the highest returns.

 The $100,000 will be divided between quality growth,

momentum growth and dividend income.

 Diversification reduces unsystematic risk.

 Each holding will have a weighted percentage based on the

criteria set forth for the given investment objective.

 Each objective investment is comprised of 4 to 6 stocks and 1

mutual fund.
 Methodology

 Look for stocks & MFs with lowest risk. For MFs, 10 Year Return will be a large
benchmark.

 For Quality growth emphasis laid on

Cash Flows (Type 0 & 1)
EPS (Type 0 & 1)

 For Momentum growth emphasis laid on

Timeliness (Type 1)
Stars (*****)

 For Dividend growth emphasis laid on

DPS (Type 0 & 1)
DPS Compound >11%
Percentage Allocations
 Quality Growth Criteria

1) CF Type 0 or 1
2) EPS Type 0 or 1
3) VL Safety: 1
4) Beta < .76
5) VL Financial Strength: A+ or A++
6) S&P Quality: A-
7) Choose best CF & EPS per industry
 Quality growth stocks

Fin.
Industry NAME TICKER CF TYPE EPS TYPE SAFETY BETA Strength Quality

Medical Becton,
Supplies D'son BDX 0 0 1 0.65 A++ A

Medical Johnson &

Supplies Johnson JNJ 1 1 1 0.55 A++ A+

Medical Medtronic,
Supplies Inc. MDT 0 0 1 0.65 A++ A-

Pharm.
Services Walgreen WAG 1 1 1 0.75 A+ A+
Household
Products Proctor &
Industry Gamble PG 1 0 1 0.55 A++ A+

Drug Abbott
Industry Labs ABT 0 0 1 0.6 A++ A-

Retail Wal-Mart
Store Stores WMT 0 0 1 0.65 A++ A+
 Quality growth

Industry Name Ticker CF Compound EPS

Compound

Medical Supplies Becton, D'son BDX 10.98% 13.14%

Medical Supplies Johnson & Johnson JNJ 12.06% 12.51%

Medical Supplies Medtronic, Inc. MDT 16.78% 17.27%

 Quality Growth Mutual Fund

Overall Overall 1 year 3 year 5 year 10 year

Ticker Rank Risk Retur Return Return Return NAV
n Compound
1 1
OAKBX -14.9 3.1 6.2 9.7 6.49%
1 1
MBLOX -24.6 1.9 6.2 8.4 0.56%
1 1
MQIFX -25.6 -1.5 4.4 7.1 -0.15%
1 1
JABLX -20.2 1.5 4 5.6 4.30%
1 1
JABAX -19.3 1.6 4 5.1 3.17%
1 1
WEBAX -19.7 1.6 4.8 4.7 0.45%
1 1
VWELX -25 -0.6 3.7 4.6 -0.04%
1 1
TWSMX -26.4 -0.7 2.8 4.3 -0.14%
1 1
BTBFX -18.8 1.4 3.1 3.4 2.64%
1 1
WMBLX -21.8 -0.9 0.7 1.6 -1.70%
1 1
FVALX 0.4 -0.5 4.6 1.6 -0.04%
Industry breakdown for quality growth
 Momentum Growth Criteria

2) Timeliness: 1
3) Stars: 5
4) Beta < .76
5) S&P Stars: B+
 Momentum Growth Mutual Fund

BLACKROCK GLOBAL RESOURCES: SSGRX

 Selected MF with highest 10-Year Return and

highest price compound.
 10 Year Return: 25.5%
 Price Compound: 15.09%
 Dividend Income Criteria

1) DPS Type: 0 or 1
2) DPS Compound > 11%
3) Safety: 1
4) Beta < .86
5) S&P Quality: A-
6) Select stocks with highest div yield
 Dividend Income Mutual Fund

FIDELITY CANADA FUND: FICDX

Ticker Overall Rank 10 Year Return DPS
Compound

PNAAX 3 12.8 14.78%

AMSTX 3 0.2 19.48%

JAOSX 2 12.7 17.80%

FICDX 1 19.1 13.18%

FSLBX 4 0.075 14.01%

VHGEX 3 11.6 14.99%

PEQUIX 3 7 13.74%

NIVAX 3 11.9 14.40%

NIVLX 3 12.6 38.34%

Allocation Percentages for Quality Growth

Ticker CF Compound EPS Compound 10 Year Return % Allocation

MDT 16.78% 17.27% - 0.25

WAG 14.17% 14.05% - 0.2

WMT 13.85% 12.99% - 0.2

PG 9.73% 11.14% - 0.15

ABT 9.62% 9.54% - 0.1

OAKBX (MF) - - 9.7% 0.1

For the stocks, the allocations are based on the CF & EPS
Compounds.

For OAKBX, we looked at 10 Year Return.

 Quality Growth Results
Ticker Price / Share % Allocation Total price of Number of shares
investment
MDT $29.59 0.25 $10,000 338

WAG $23.86 0.2 $8,000 335

WMT $49.24 0.2 $8,000 162

PG $31.06 0.15 $6,000 194

ABT $47.34 0.1 $4,000 84

OAKBX $27.17 0.1 $4,000 148

TOTALS: 1.00 $40,000

Quality growth investment: 40% of $100,000

Allocation Percentages for Momentum Growth

Ticker Price Compound 10 Year Return % Allocation

SSGRX (MF) - 25.5% .4

CAI 20.98% - 0.3

BCR 11.35% - 0.1

FDO 9.34% - 0.1

MCD 9.27% - 0.1

For SSGRX, we look at 10 Year Return, based on this high return, we give
this fund the most weight in this investment objective.

For stocks, CAI’s price compound is much greater than the others, so
it has a greater weight.
 Momentum Growth Results
Ticker Price / Share % Allocation Total price of Number of shares
Investment
SSGRX $63.50 0.4 $14,000.00 221

CAI $42.77 0.3 $10,500.00 246

BCR $80.26 0.1 $3,500.00 43

FDO $27.44 0.1 $3,500.00 127

MCD $52.25 0.1 $3,500.00 67

TOTALS: 1.0 $35,000

Momentum growth investment: 35% of $100,000.

 Allocation Percentage for Dividend Income
Ticker Dividend Yield 10 Year Return % allocation

FICDX (MF) - 19.1% 0.35

AJG 8.32% - 0.20

SYY 4.28% - 0.15

JNJ 3.86% - 0.15

PEP 3.53% - 0.05

PG 3.45% - 0.05

GD 3.40% - 0.05

FICDX is allocated the largest percentage based on the 10 Year Return.

The stocks are allocated based on the Dividend Yield.

 Dividend Income Results
Ticker Price / Share % allocation Total price of Number of shares
Investment
FICDX $61.63 0.35 $8,750 142

AJG $15.87 0.20 $5,000 315

SYY $21.50 0.15 $3,750 175

JNJ $50.00 0.15 $3,750 76

PEP $48.14 0.05 $1,250 25

PG $48.17 0.05 $1,250 26

GD $43.82 0.05 $1,250 28

TOTALS: 1.0 $25,000

Dividend growth investment: 25% of $100,000