BA 927 Investment Management PDF

The Asset Allocation Process RO B E RT O M AR CO N. S AM S O N M BA, E S S , C I S , F I MS , C TP , C US P , C FM P Session Objectives What is Asset Allocation? What Assets best fit us? What Asset Allocation approach works best? About Myself MIN Relationship Manager, Unionbank,...

The Asset Allocation Process RO B E RT O M AR CO N. S AM S O N M BA, E S S , C I S , F I MS , C TP , C US P , C FM P Session Objectives What is Asset Allocation? What Assets best fit us? What Asset Allocation approach works best? About Myself MIN Relationship Manager, Unionbank, Private Banking Dept. S.E.C. - Licensed Equities Securities Salesman (ESS) S.E.C. - Licensed Certified Investment Solicitor (CIS) S.E.C. – Licensed Fixed Income Market Salesman (FIMS) TIFP – Certified Trust Professional (CTP) T.O.A.P. – Certified UITF Sales Personnel (CUSP) Bloomberg - Certified Financial Markets Professional (CFMP) Regular contributor to ANC 24/7 News Channel & Bloomberg PH TV Part-Time Professor at the Ateneo de Davao University, Graduate School Accredited Program Instructor at the ADDU Academy of Lifelong Learning Master’s in Business & Administration graduate, Ateneo de Davao University BS – Industrial Engineering graduate, Ateneo de Davao University Managerial & Organizational Leadership specialist, Golden West College (California, USA) What is Asset Allocation? Asset allocation is how investors divide their portfolios among different assets that might include equities, fixed-income assets, and cash and its equivalents. Investors ordinarily aim to balance risks and rewards based on financial goals, risk tolerance, and the investment horizon. Why Allocate Your Assets? There is no set formula for how each person should divide your assets. Thus, an intimate understanding of your financial and investment needs is needed. You can use different asset allocation strategies based on your objectives and stage in life. Some Questions to Ask… What do I intend to use my savings and investments for? How long do I realistically have to invest before I need the funds? How much risk am I willing to take? Will capital loss affect me greatly or not? What stage in my career am I in? How much capital do I have available to invest? Is it one-time or staggered? Accumulation Stage (Age 20-35) Asset Allocation Equities Time Deposits Insurance UITFs Bonds 20 35 35 5 5 Preparation Stage (Age 35-60) Asset Allocation Equities Time Deposits Insurance UITFs Bonds 25 30 10 5 30 Retirement Stage (Age 60+) Asset Allocation Equities Time Deposits Insurance UITFs Bonds 10 10 5 60 15 Judging the Performance of your Portfolio It is not enough that your investments are making money. Aside from that, your investments should be outperforming the proper benchmarks. It is best to do an annual review of your investment portfolio. Our Objectives 1. Find a stable source of income 2. Spend less than what we earn 3. Build up an Emergency Fund (3- 6 months worth of expenses) 4. Protect yourself via Life and Medical Insurance 5. Put your excess savings to work via Investments 6. Allocate your assets properly Thank You! Your Turn: “What would you do differently or better now?”