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Lec 9
Lec 9
Portfolio Management
Portfolio Management
• The art of selecting the right investment policy for the individuals in terms
of minimum risk and maximize the return is called as portfolio
management. In simple words, it refers to managing an individual’s
investment in the form of bonds, share, cash, mutual funds etc so that
investor earns the maximum profits within the stipulated time frame. In
other words it is reffered to managing money of an individual under the
expert guidance of portfolio managers.
Who is a Portfolio Manager?
• An individual who understand the client’s financial needs and assigns a suitable
investment plan as per his income and risk taking abilities is called a portfolio
manager. A portfolio manager is one who invests on behalf of the client.
• A portfolio manager counsels the clients and advises him the best possible
investment plan which would gurantee maximum returns to the individuals.
• A portfolio manager must understand the client’s financial goals and objectives
and offer a tailor made investment solutions to him. No two clients can have the
same financials needs.
Key Responsibilities of a Technology Portfolio
Manager
As a technology portfolio manager you will be responsible helping manage budget, risks and
constraints of a portfolio of assigned projects and programs. Following would be key responsibilities:
• Manage and report on complete portfolio of technology projects across multiple lines of business.
• Interacts with business unit leadership to ensure business objectives are met initiatives are
prioritized appropriately.
• Partner with business and technology terms to report on portfolio and project health.
• Responsible for managing pipeline of small to large project requests and assigning proper resource.
Key Responsibilities of a Technology Portfolio
Manager
• Prepares through and articulate executive summaries for senior leadership so that
subsequent questions are not required.
• Participate and lead project checkpoints to ensure proper adherence to technology
standards and procedures.
• Tracks projects expenses with assigned project manager and ensure adherence to
approved budget (as defined in approved business case).
• Collaborate with program/project managers to define time frames, funding
procedures, staffing requirements and assignments of resources.
Making a Technology Portfolio of an
Organization
• The ultimate goal of a portfolio manager is to maximize the capabilities of the organization as a whole. A portfolio will
help to show the area of interest relevant to a common industry specialty or domain. It can cover following areas.
• Information:
It will provide an enterprise view of the form and condition of the enterprise’s information and data
assets. Predominately the focus is on digitized information and data assets however physical forms are
not excluded. At the area of concern could be:
• The ease at which technology enables data and information to be created, accessed and transferred;
• Emerging disruptive technologies;
• Changing nature of user expectations, behaviors and mobility; and
• The balance between protection and availability
Making a Technology Portfolio of an
Organization
• Infrastructure: it is responsible for understanding the form and condition of the enterprise
technology infrastructure. In this context, infrastructure can be defined as:
• The composite hardware, software, network resources and services required for the
existence, operation and management of an enterprise IT environment.
• A combined set of hardware, software, networks, facilities, etc. (including all of the important
technology), in order to develop, test deliver, monitor, control or support IT services.
• What technologies we currently have
• What technologies are needed now and in the future.
Need for Portfolio Management
• Active Portfolio Management: As the name suggests, in an active portfolio management service, the
portfolio managers are actively involved in buying and selling of securities to ensure maximum profits
to individuals.
• Passive Portfolio Management: in the passive portfolio management, the portfolio manager deals
with a fixed portfolio designed to match the current market scenario.
• Discretionary Portfolio Management Services: in discretionary portfolio management services, on
individual authorizes a portfolio manager to take care of his financial needs on his behalf.
• Non- Discretionary Portfolio Management Services: in non discretionary portfolio management
services, the portfolio manager can merely advise the client what is good and bad for him but the client
reserves full right to take his own decisions.
Managing Technology Portfolio
• Create a process to review and refresh the technology portfolio: so that all
of this effort is not a “one and done,” you should embed a periodic review
into your core planning architecture and governance processes.