LAGUNA COLLEGE

The Investment Portfolio

of
Maria Aleni B. Verallo

MBM II 3/22/2014

I. Personal Financial Profile:

A. Personal Value for Money We dont use people to gain money, but we use money to gain people I personally believe that proper investment is when we learn to value people more than anything else. It is because money is valueless without people. When we invest on people, we gain not only money but also good relationship. But when we invest on money and money is what we value most, we lose people and eventually we lose our money. This view affects the way I manage my money. I allot my salary to different areas of concern: 20% for my savings, 25% for investment, 55% for expenses, and 5% for emergency purposes. Included in the 55% are my expenses for my loved ones.

B. Personal Financial Goals: My financial goal can be categorized into two: a) to attain financial stability, it is when I dont have to worry about money. It means that money works for me and not me working for money; and 2) to help others to be financially stable, because when the people around us are not financially stable, they will affect us one way or another. Being financially stable to me is not just me enjoying my success but also to see others to enjoy their own.

C. Financial Strategies: a. To achieve my desired goals, there are certain things that must be considered:

a.1. Building healthy relationship. You are building connection with people. These people will be the ones who will accompany you and help you reach your financial goals. Later on in your life these people will be the ones whom you can really trust when you are ready to invest. a.2. Investing wisely. If you are ready for investment, it must be clear what you really like and what are the things that you really enjoy. It is not how much I will I profit but how the investment will give me fulfillment.

For example I am a pharmacist, I like helping and guiding people to wellness, I think I would to invest on that particular field.

b. Actions to be taken: 1. To widen my network. I should not limit myself to particular circle of friends but I have to widen my network. 2. FOCUS. a. Fix my thoughts on my goal. b. Observe those who succeeded. c. Consider those who fail. d. Utilize Gods power. e. Stand firm on my commitment.

c. Target date: 10 years. 5 million in ten years.

d. The bigger the investment the bigger the risk. I am conservative investor, always trying to be cautious and certain about my investment. If I believe from my heart that this investment is worth the price, ill grab it.

II.

Investment Strategy: A. Rationale: 1. To maximize the use of 1 million pesos. 2. To maximize its earning potential. B. Actions to be taken: 1. I chose the following specific investment options considering that I kept a considerable amount of money from my salary for contingency fund: a. Stocks: The following lists the corresponding charges for buying and selling transactions: Fee
Commission Value Added Tax (VAT) Philippine Stock Exchange Transaction Fee (PSE Trans Fee) Securities Clearing Corporation of the Philippines Fee (SCCP) Additional Fee for Selling Sales Tax No. of Shares x Price x 0.005

Amount
0.25% 12% 0.005%

Remarks
Of the Gross Trade Amount Of Commission Of the Gross Trade Amount

0.01%

Of the Gross Trade Amount

*Note: The Commission fee has a minimum charge of P20.00 per transaction. And if you require a broker-assisted trade, the commission charge is 0.5% of the Gross Trade Amount.

For Example: Buying- Total fees for buying 20,000 shares of ALI at Php 5.00/Share:
Fee: Commission Vat PSE Trans Fee SCCP Total Computation: (20,000.00 x 5.00) x )0.25% P250 x 12% (20,000.00 x 5.00) x )0.005% (20,000.00 x 5.00) x )0.01% P250.00 P30.00 P5.00 P10.00 P295.00 Amount:

Selling- Total fees for selling 20,000 shares of ALI at Php 5.20/Share:
Fee: Commission Vat PSE Trans Fee SCCP Sales Tax Total Computation: (20,000.00 x 5.20) x 0.25% P260 x 12% (20,000.00 x 5.20) x 0.005% (20,000.00 x 5.20) x 0.01% 20,000.00 x 5.20 x 0.005 P260.00 P31.20 P5.20 P10.40 P520.00 P826.80 Amount:

b. Mutual Funds: I opted to invest in Sunshine Balanced Fund having a net asset value of P108.00 per share with a probability of earning of 65% at 10% p.a.

2. Investment Portfolio Computations: a. Stocks:

a.1. Stocks Procurement Computation: The total amount I invested in the Stock Market last February 24, 2014 is 897,307.27.
Stocks Board Lot Closing Price per Stock as of Feb 21,2014 43.8 Number of Stocks Total amount

JGS

10

11410 Com Vat PSETF SCCP Total Cost of Transaction Average Price per Share

499,758.00 1,249.40 149.93 24.99 49.98 501,232.29

43.93

Stocks

Board Lot

Closing Price per Stock as of Feb 21,2014 3.91

Number of Stocks

Total amount

MEG

1000

101000 Com Vat PSETF SCCP Total Cost of Transaction Average Price per Share

394,910.00 987.28 118.47 19.75 39.49 396,074.98

3.92

I sold my stocks from MEG and JGS last March 6, 2014. With the earnings, I was able to buy a new portfolio amounting to 995,947.40. March 6, 2014 Stocks Procurement Computation:

Stocks

Board Lot

URC

10

Closing Price per Stock as of Mar 6,2014 138

Number of Stocks 1450 Com Vat PSETF SCCP Total Cost of Transaction Average Price per Share

Total amount

200,100.00 500.25 60.03 10.01 20.01 200,690.30 138.41

Stocks

Board Lot

LRI

100

Closing Price per Stock as of Mar6,2014 8.99

Number of Stocks 88200 Com Vat PSETF SCCP Total Cost of Transaction Average Price per Share

Total amount

792,918.00 1,982.30 237.88 39.64 79.29 795,257.10 9.02

b. Mutual Fund: The total amount I invested in Sunshine Balanced Fund last February 24, 2014 is 102,600.00.

3. Expected Outcome: a. Stocks Investment Portfolio Computation:

The following shows the stock selling computations of MEG and JGS last March 6, 2014:
Closing Price per Stock as of Mar 6,2014 50.05 Number of Stocks 11410 Com Vat PSETF SCCP Sales Tax Total Amount of Transaction Average Price per Share Earnings: Total amount 571,070.50 1,427.68 171.32 28.55 57.11 2,855.35 572,755.16 50.20 71,522.87

Stock JGS

Stock MEG

Closing Price per Stock as of Mar 6,2014 4.23

Number of Stocks 101000 Com Vat PSETF SCCP Sales Tax Total Amount of Transaction: Average Price per Share Earnings:

Total amount 427,230.00 1,068.08 128.17 21.36 42.72 2,136.15 423,961.69 4.20 27,886.71

I opted to hold on to the following stocks since the earnings are not as much as the earnings of my last stocks investment. I was hoping to get more out of my March 6 portfolio. The following shows the expected outcome on LRI and URC as of March 21, 2014.
Closing Price per Stock as of Mar 21,2014 140.5 Number of Stocks 1450 Com Vat PSETF SCCP Sales Tax Total Amount of Transaction: Average Price per Share Earnings:

Stock URC

Total amount 203,725.00 509.31 61.12 10.19 20.37 1,018.63 202,166.50 139.43 1,476.21

Stock

LRI

Closing Price per Stock as of Mar 21,2014 9.28

Number of Stocks 88200 Com Vat PSETF SCCP Sales Tax Total Amount of Transaction Average Price per Share Earnings:

Total amount

818,496.00 2,046.24 245.55 40.92 81.85 4,092.48 812,234.51 9.21 16,977.40

b. Sunshine Balanced Fund: Principal Amount Interest Rate Interest Earned Amount (Principal + Interest Earned)

102,600.00 (950 Shares)

10% p.a

555.75

103,155.75

III. Portfolio Earnings: A. Total Outcome: Stocks Investment: Type of Investment Stocks Mutual Fund Amount Gained 117,863.19 555.75 Return on Investment Ratio: 11.84%

B. Evaluations of the Actions Taken: I opted to invest 90% in the stock market. Though the risk of losing money is high, I considered its high earning potential. As a conservative investor, I considered the recommendation of a stock broker prior to putting my money in. Luckily, I was able to gain 13% in my stocks investment which is considerably high that putting my money in a savings account or in a mutual fund. I also considered putting a part of the money in a mutual fund rather that a savings account. It is also an avenue of earning higher profits than a savings account.