Investment Programming

MPA 210 Strategic Planning

1. Prepared By: Ma. Fatima C. B alaoing Investment Programming

2. INVESTMENT PROGRAMMING An  investment program  represents the planned or budgeted costs for the capital  investments  (or other projects) of an enterprise or corporate group in the form of a hierarchical structure . In general, to  invest  is to distribute money in the expectation of some benefit in the future – for example,  investment  in  durable goods , in  real estate  by the  service industry , in  factories  for  manufacturing , in  product development , and in  research and development . However, this article focuses specifically on investment in  financial assets .

3. INVESTMENT PROGRAMMING PROCESS Project Identification in identifying projects, meeting of development needs and solving problems and constraints are taken into account. Project Integration refers to the unification of various sets of programs, projects and activities in the institution to achieve efficiency, effectiveness, unity, cohesiveness, and complementarily.

4. Specific types of Investments in Investment Programming Stocks Companies sell shares of stock to raise money for start-up or growth. When you invest in stocks, you’re buying a share of ownership in a corporation. You’re a shareholder . There are two types of stock : a . Common stock.   Shareholders have a percentage of ownership, have the right to vote on issues affecting the company and may receive dividends. b . Preferred stock.  Shareholders are generally entitled to dividends at specified intervals and in predetermined amounts, but they don’t typically have voting rights . Investment returns and risks for both types of stocks vary, depending on factors such as the economy, political scene, the company's performance and other stock market factors.

5. Bonds When you buy a bond, you’re lending money to a company or governmental entity, such as a city, state or nation. Bonds are issued for a set period of time during which interest payments are made to the bondholder. The amount of these payments depends on the interest rate established by the issuer of the bond when the bond is issued. This is called a coupon rate, which can be fixed or variable. At the end of the set period of time (maturity date), the bond issuer is required to repay the par, or face value, of the bond (the original loan amount). Bonds are considered a more stable investment compared to stocks because they usually provide a steady flow of income. But because they’re more stable, their long-term return probably will be less when compared to stocks. Bonds, however, can sometimes outperform a particular stock’s rate of return. Keep in mind that bonds are subject to a number of investment risks including credit risk, repayment risk and interest rate risk.

6. Cash equivalent Cash equivalent investments protect your original investment and let you have access to your money.  Example  include : a. Savings accounts b. Money market accounts c. Certificates of deposit (CDs) These different types of investments generally deliver a more stable rate of return. But cash equivalent investments aren’t designed for long-term investment goals such as retirement. After taxes are paid, the rate of return is often so low that it doesn’t keep pace with inflation.

7. Other Types of Investments Investment Funds Funds—such as mutual funds, closed-end funds and exchange-traded funds—pool money from many investors and invest it according to a specific investment strategy. Funds can offer diversification, professional management and a wide variety of investment strategies and styles. But not all funds are the same . Retirement Numerous types of investments come into play when saving for retirement and managing income once you retire. Insurance Life insurance products come in various forms, including term life, whole life and universal life policies. There also are variations on these—variable life insurance and variable universal life—which are considered securities. 

8. How I nvestment P rogramming is related to Development Planning Process and Strategic Planning Process Model

9. Development Planning Process Model has eight steps. Situational analysis Goal/objectives/target setting Policy/ Strategy Formulation Program/ Project Identification INVESTMENT PROGRAMMING Budgeting Implementation and monitoring Evaluation and plan update

10. Situational analysis Require the conduct of survey and research study. Goal/objectives/target setting Goal- is a broad statement of an image of the future the organization seeks to achieve. Objection-which emanates from the goal , refers to medium range expectation which is pursued to satisfy the goal. Target-the most specific statement of purpose which is measurable and achievable. Policy / Strategy Formulation more specific policy and strategies formulated for each area of concern to as social economic,physical,political , and developmental administrative aspects for a particular period. Program/ Project Identification Prioritization of program and project is done through the conduct of studied to a listing of priorities viewed as responsive to the development needs of the people. Development Planning Process Model

11. INVESTMENT PROGRAMMING Budgeting The costing of identified priority program and projects. Implementation and monitoring Evaluation and plan update Results, in terms of outputs, after a year of implementation, and outcomes. These outputs are feed backed to managers and planners for decision-making and planning process of updating the plan.

12. Development Planning Process Model (NEDA,2001)

13. Steps in Strategic Planning Process Model Organizational and Staffing a.training Environmental Scanning a.internal b.external c.S.W.O.T d.frame Vision a.mission b.goals c.objectives d.targets Policy/Strategy Information Program/Project Identification a.project preparation

14. INVESTMENT PROGRAMMING Budgeting Implementation Explanation Plan Update Effect Impact Outcome

15. Updated Philippine Development Plan Global Economic Growth, 2000-2020 Source: World Bank (2018c).

16. Updated Philippine Development Plan Real GDP Growth Rates, 2015-2020 Source: World Bank (2018b), World Bank (2018c), World Bank (2018d).

17. Sustained Economic Growth Makes It Likely That Poverty Reduction Will Continue (2006-2020) Source: PSA, World Bank staff estimates Updated Philippine Development Plan

18. The Role of Risk-taking in Investment Strategy Risk is a huge component of an investment strategy. Some individuals have a high tolerance for risk while other investors are risk-averse. One overarching rule, however, is that investors should only risk what they can afford to lose. Another rule of thumb is the higher the risk, the higher the potential return, and some investments are riskier than others. There are investments that guarantee an investor will not lose money, but there will also be minimal opportunity to earn a return.

19. R esources https:// help.sap.com/doc/saphelp_470/4.7/en-US/2a/f9f2b3493111d182b70000e829fbfe/content.htm?no_cache=true https:// en.wikipedia.org/wiki/Investment https:// www.nationwide.com/investment-types.jsp https:// www.bigsocietycapital.com/what-we-do/champion/social-impact-tools/best-practice-investors/step-5-investment-decision-making http:// www.finra.org/investors/types-investments https:// www.bigsocietycapital.com/what-we-do/champion/social-impact-tools/best-practice-investors/step-5-investment-decision-making https :// www.investopedia.com/terms/i/investmentstrategy.asp

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