Module 3 · Portfolio Management

Portfolio Management: An Overview

EN: Investment process, types of investors, and pooled vehicles.
VN: Quy trình đầu tư, các loại nhà đầu tư, vehicle gộp vốn.

1. Three-Step Portfolio Management Process Concept

1. Planning Understand client, write IPS.
2. Execution Asset allocation, security selection, trade.
3. Feedback Monitor, rebalance, performance review.

2. Types of Investors Concept

About: Individuals + Institutions (pension DB/DC, endowment, foundation, insurance, banks, SWF). Each has unique liability structure and risk tolerance.Tóm tắt: Cá nhân + tổ chức (pension, endowment, foundation, insurance, bank, SWF). Mỗi loại profile khác.

Individuals

Individual goals, taxes, life-stage allocation.

Institutions

Pension DB (asset-liability) vs DC (member-directed).
Endowment Long horizon, intergenerational equity.
Foundation Mission-driven, often distribution requirements.
Insurance Asset-liability matching, regulatory constraints.
Banks Liquidity priority, conservative.
SWF Sovereign wealth fund — long horizon, large.

3. Pooled Vehicles Concept

About: Mutual fund (open vs closed), ETF (intraday + arb), SMA (direct ownership), HF/PE/VC (alternative). Cost, liquidity, transparency vary.Tóm tắt: MF (open/closed), ETF, SMA, HF/PE/VC. Cost/liquidity/transparency khác nhau.

Mutual fund Open-end (NAV trading) vs closed-end (fixed shares, market price).
ETF Trades intraday on exchange; arbitrage keeps price near NAV.
SMA Separately managed account — direct ownership.
Hedge fund / PE / VC See Alts subject.

Practice problem Practice

Practice problem

A 65-year-old retiree needs steady income and capital preservation. Long-term horizon but uncomfortable with volatility. Suitable investor archetype?

Show solution

Income/conservative profile typical of retirees.

Lower equity %, higher fixed income/cash, ESG/wealth preservation focus.

Conservative individual investor with income objective