GROUP 2 INVESTMENT

POLICY
STATEMENT
Subject PORTFOLIO MANAGEMENT
Intructor: Dr.Nguyễn Duy Linh
 CONTENT

01 INTRODUCTION
05 MONITORING PORTFOLIO INVESTMENT
AND PERFORMANCE

02 DUTIES AND INVESTMENT

RESPONSIBILITIES INVOLVED 06 METHODLOGY

03 INVESTMENT OBJECTIVE
AND SPENDING POLICY 07 IN CONCLUSION

04 PORTFOLIO INVESTMENT
POLICIES
 I. INTRODUCTION
• Melisa Sende Derose Date of Birth:
01/04/1979 Nationality: Philipine Gender:
Female

CUSTOMER INFORMATION
• She is residing in Ho Chi Minh City, holds
a managerial position within a restaurant
chain, earning a monthly income of $2000.
OUR VISION AND
MISSION
• Our ARENA fund aims to provide a strategy that
aligns with each client, understanding the needs
and capabilities of each individual.
II. DUTIES AND INVESTMENT
RESPONSIBILITIES INVOLVED
A. ARENA FUND
• The A ren a Fu n d ( h er ein af ter referr ed
to as th e "Fu n d ") , w h ich r eceives
en tr ustmen t f r o m c u sto mer s (M iss
Melisa) to in v e st th e ir a ssets based o n
her deman d in sh o r t- m id ter m.
B. INVESMENT ADVISOR
Th e a d v i s or's rol e encompasses both
mo n i t o ri n g and managi ng t he i nvest o r's
p o rt fo l i o , whi l e al so devi si ng i nvestme n t
s t ra t e g i e s tai lored t o t he cl i ent 's need s
 C. THE CLIENT

1 . C lien ts h av e th e rig h t to o v ersee an d track th e in v estm en t

p ro ced u re.
2 . C lien ts sh o u ld refrain fro m in terv en in g in th e asset in v estm en t
strateg y an d p ro cess u n less th ere is tan g ib le p ro o f o f th e
m ism an ag em en t o r m isu se o f th e assets en tru sted .
III. INVESTMENT OBJECTIVE AND
SPENDING POLICY

• In the short term, she aims to purchase a house and

buy a car.
• In the long run, her objectives include saving for her
children's education abroad and allocating a portion
towards her retirement fund.
IV. PORTFOLIO INVESTMENT
POLICIES

A. ASSET ALLOCATION POLICY

Asset allocation involves dividing an investment portfolio
among different asset categories, such as stocks, bonds, and
cash. The process of determining which mix of assets to hold
in your portfolio is a very personal one.
IV. PORTFOLIO INVESTMENT POLICIES
B. DIVERSIFICATION POLICY C. REBALANCING
The Portfolio will be adjusted to its intended
Diversification is the strategy of distributing
standard asset allocation
investments across various assets to mitigate risk.
• The investment manager is authorized to
By selecting a well-balanced mix of investments,
propose a rebalancing recommendation at any
investors can potentially minimize losses and
stabilize investment returns without compromising given moment.
potential gains • The investment manager will promptly assess
any deviation from these ranges and take
appropriate action.
V. MONITORING PORTFOLIO INVERSTMENT
AND PERFORMANCE

ARENA FUND 2019-2024

• The Committee will oversee the investment performance of
the Portfolio in relation to its stated investment objectives. It
will conduct formal assessments of the Portfolio and its
underlying investments at intervals determined by the
Committee.
 01 STEP 1: PROCESS THE INPUT DATA

VI. METHODLOGY 02 STEP 2: CALCULATE STOCK

COEFFICIENTS
ARENA FUND 2019-2024

03 STEP 3: ESTABLISH THE OPTIMAL

RISKY PORTFOLIO

STEP 4: ESTABLISH THE OPTIMAL

04 COMPLETE PORTFOLIO
 STEP 1: PROCESS THE
INPUT DATA

This is an vital initial step of every researches,

Specifically, we have to collect the monthly closing

price of 10 stocks from 1/3/2019 to 1/3/2024
 STEP 2: CALCULATE STOCK COEFFICIENTS

Lastly, we employ Excel formulas to calculate the Covariance and Correlation between each pair of stocks. Covariance
quantifies how much two variables "move together" compared to their individual mean values over time.
Additionally, Correlation measures the extent to which two securities move relative to each other, serving as crucial
variables for further analysis in the subsequent steps we will undertake.
 STEP 3: ESTABLISH
THEis theOPTIMAL
Business practice of making one'sRISKY
living

PORTFOLIO
or making money by producing or buying and
selling products. It is also "any activity or
enterprise entered into for profit.

Exclusive template ready to be

customized for your presentation.
 VI. METHODLOGY
SHARPE RATIO BMP-FPT-VCB
A positive Sharpe ratio suggests an increase in the
( 1 ) The total weight is one hundred percent. ( 2 ) The
expected return of the portfolio per unit of additional
Sharpe ratio is the highest in this portfolio.
risk. Conversely, a negative Sharpe ratio, found in one
instance, implies that either the risk-free rate exceeds
the portfolio's return or there's an overall negative 34,48% 7.25% 3.08%
performance. In either case, a negative Sharpe ratio Sharpe Ratio of Standard Expected Return
lacks meaningful information. Optimal Risk Deviation of of Optimal Risk
Portfolio Optimal Risk Portfolio
Portfolio
 CTY Nhựa Bình Minh
Company Name: Binh Minh Plastics Joint Stock
Company
Stock code: BMP
Charter Capital: 818,609,830,000 VND
Stock exchange: HOSE
Head Office: 240 Hau Giang, Ward 9, District 6,
Ho Chi Minh City.
Telephone: (84 28) 3969 0973
Fax: (84 28) 3960 6814
Email: binhminhplas@hcm.fpt.vn
Website: www.binhminhplastic.com
 Tập đoàn FPT
Company name: FPT Corporation
Stock code: FPT
ISIN: VN000000FPT1
Charter capital: 7.839874.860.000 VND
Stock exchange: HOSE
Head office: 10 Pham Van Bach Street, Dich Vong Ward, Cau
Giay District, Hanoi, Vietnam
Tel: 02473007300
Fax:02437687410
Website: https://fpt.vn/vi
Company name: Joint Stock Commercial Bank For
Foreign Trade Of Vietnam
Stock code: VCB
ISIN: VN000000VCB4
Charter capital: 55.890.912.620.000 VND
Stock exchange: HOSE
Head office: 198 Tran Quang Khai Street, Ly Thai To
Ward, Hoan Kiem District, Hanoi, Vietnam
Tel: 028.37294722
Fax: 028.37294726
Website: https://www.vietcombank.com.vn/
 STEP 4: ESTABLISH THE OPTIMAL
COMPLETE PORTFOLIO

• we conduct discover the Utility Score.

• With A = 9 (Risk averse investor) and Solver function Excel to calculate, we will
receive a result below:
 GROUP 2

VII. CONCLUSION
• In conclusion, the most appropriate choice that aligns with Ms. Melisa's preferences and risk tolerance is the
optimal complete portfolio. This comprehensive portfolio boasts the highest Sharpe ratio and Utility value. To be
precise, our investment strategy involves allocating 47,17̀% to the Risk-free asset (T-bill) and 52,83% to the Risky
asset, which comprises 21,08̀% BMP; 73,92̀ FPT, and 5% VCB.
• Finally, with the aforementioned allocation fund's scenario, The Expected return of overall portfolio would be
3,08% per month, the Standard deviation is 7,25%, the maximum Sharpe ratio is 34,48% and the maximum Utility
value is 1%.
 TEAM REPORT
Trần Thị Mỹ
Lê Trần Như Trần Nguyễn Phạm Thị Phan Gia Bảo
NAME Thoa (Team Ngô Huy Khánh Võ Thu Trăm
Hoàng Hải Nam Thanh Trúc Trâm
leader)

Record video, Design

Assign tasks,
support in algorithms,
monitor team Design Canva Research Develop data Research
analyzing contribute to
progress; presentationand information on construction information on
ASSIGNMENT numerical content
analyze and contribute 3 companies, plan, research 3 companies,
reports, analyze creation,
report data content design in Word and process data design in Word
data analyze data

%
14,5% 14,5% 14,5% 14,5% 14,5% 14,5% 14,5%
CONTRIBUTED

DONE 100% 100% 100% 100% 100% 100% 100%

HELLO EVERYONE,
LET'S PLAY A GAME
 QUESTION NO.1
COMPONENTS OF IPS?
A. Scope and purpose, governance, investment, Return and risk
objectives
B. Scope and purpose, governance, investment objectives and risks.
C. Scope and purpose, returns and risks, and risk management.
D. All are wrong
 THE
ANSWER IS...
A. SCOPE
AND
PURPOSE,
GOVERNANC
E,
INVESTMENT
, RETURN
AND RISK
OBJECTIVES
QUESTION NO.2
The issues that need to be addressed in the IPS:

A. Client's risk tolerance

B. Leverage, liquidity requirement
C. Asset allocation decisions
D. All above is right
 THE
ANSWER IS...
D. All
above is
right
Question 3: Important reasons for
constructing an IPS:
A. It helps the investor decide on realistic investment goals after learning about
the financial markets and therisks of investing

B. Protects the client against a portfolio manager's inappropriate investments or

unethical behavior

C. It creates a standard by which to judge the performance of the portfolio

manager

D. All of the above are correct

The correct answer is

D. All of the above are correct

Question 4: The optimal risk portfolio
found is:
• A. BMP-FPT-VCB
• B. VNM-BMP-VCB
• C.VCB-MSN-VNM
• D.PTB-VCB-MSN
The correct
answer is
A. BMP-FPT-VCB
Question 5: Sharpe Ratio of
Optimal Risk Portfolio is:
A. 10.23%
B. 11.56%
C. 22.91%
D. 34.48%
The correct answer is
D. 34.48%
GROUP 2

Thanks