Portfolio Management Practices Research Articles

Hidden neighbours: extracting industry momentum from stock networks

This paper introduces an innovative method for constructing industry momentum portfolios by leveraging two stock networks: one based on stock price correlations and the other on corporate text similarity. We find that these networks capture different aspects of company relationships, motivating us to combine them and form a portfolio that exploits less visible industry momentum. Our Hidden Neighbours portfolio, analysed from 2013 to 2022, delivered an annualised return of 18.16% with a Sharpe ratio of 0.85, outperforming the S&P 500 and other traditional momentum strategies. Factor decomposition attributes returns primarily to the idiosyncratic factor α\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\alpha$$\\end{document}. Our study employs interdisciplinary methods, merging network analysis and Natural Language Processing (NLP) techniques for portfolio construction. Utilising advanced text embedding models, we enhance portfolio construction by integrating textual insights from corporate disclosures into stock networks. The paper offers a comprehensive strategy across diverse data and the interdisciplinary approach, uniting financial theory, network science, and NLP, advances both theory and practice of portfolio management.

THE DIVERSIFICATION EFFECT OF PORTFOLIO PERFORMANCE BY HDFC BANK, HYDERABAD

This study explores portfolio management practices within HDFC Bank, one of India's leading financial institutions. Portfolio management is critical for banks to optimize returns while managing risks effectively. The research delves into HDFC Bank's strategies for asset allocation, risk assessment methodologies, and the role of technology in enhancing portfolio performance. By analyzing these factors, the study aims to provide insights into how HDFC Bank navigates the complexities of portfolio management to achieve its financial objectives. Key findings highlight the importance of diversification, strategic asset allocation, and robust risk management frameworks in sustaining competitive advantage in the banking sector. Key Words: Portfolio management, Returns assessment methodologies, Risk Management, Strategic asset allocation.

Evaluation of Project Portfolio Management using the WSM Method

Project Portfolio Management (PPM) is a strategic approach that organizations employ to effectively manage their projects and align them with their overall business objectives. It involves the selection, prioritization, and control of projects to maximize their value and ensure successful project delivery. By implementing PPM, organizations can optimize resource allocation, mitigate risks, and improve decision-making processes. This abstract provides an introductory overview of PPM, highlighting its importance and key components. It emphasizes the role of PPM in driving organizational success by creating a balanced and diversified project portfolio that aligns with strategic goals. The abstract also mentions the benefits of PPM, such as improved resource utilization, enhanced project visibility, and better decision-making based on objective criteria. Overall, PPM serves as a vital tool for organizations to effectively manage their projects, achieve their strategic objectives, and maximize business value. Research on Project Portfolio Management (PPM) holds significant value as it contributes to the development of best practices and informed decision-making in project management. By investigating strategic alignment, resource optimization, risk management, decision-making processes, performance measurement, organizational agility, and stakeholder engagement, researchers can help organizations improve project selection, resource allocation, and overall portfolio management practices. This research significance is crucial for practitioners and organizations aiming to enhance project outcomes, achieve strategic objectives, and maximize business value. In this research we will be using weighted-sum method. Project 1, Project 2, Project 3, Project 4, Project 5 and Time, Cost, Quality, Risk, work health and safety out of all the 5 projects, Project 1 gets first rank in Project Portfolio Management. With the weighted sum method, we are able to find the best project in Project Portfolio Management has been evaluated with various parameters and methodology.

Comparative Analysis of Private and Public Mutual Funds: A Performance Evaluation

Abstract: The mutual fund industry is a popular investment avenue that offers investors the opportunity to invest in a diversified portfolio of securities. The industry has witnessed significant growth in recent years, with investors seeking to maximize their returns and reduce risk. This paper presents a comprehensive comparative analysis of private and public mutual funds in terms of their performance. The study aims to evaluate the risk-adjusted returns, expense ratios, fund size, asset allocation, and other relevant factors of both private and public mutual funds to determine which type of fund offers better performance. To conduct the analysis, a sample of four private and four public mutual funds was randomly selected, and their performance was evaluated using various performance metrics such as Sharpe ratio, Treynor ratio, and Jensen's alpha. The data was analyzed using statistical tools such as U test, t-test, and regression analysis. The study found that private sector mutual funds performed comparatively better than public sector mutual funds in terms of risk-adjusted returns, expense ratios, and asset allocation. Private sector mutual funds had higher Sharpe ratios and Treynor ratios compared to public sector mutual funds, indicating that they generated higher returns per unit of risk taken. Private sector mutual funds also had lower expense ratios, indicating that they charged lower fees to investors. In terms of asset allocation, private sector mutual funds had a higher allocation towards equity securities compared to public sector mutual funds, which had a higher allocation towards debt securities. The study also identified significant differences in the investment strategies, portfolio management, and investor base of private and public mutual funds. Private sector mutual funds had a more aggressive investment strategy, with a higher allocation towards equity securities, whereas public sector mutual funds had a more conservative investment strategy, with a higher allocation towards debt securities. Private sector mutual funds were also found to be more actively managed compared to public sector mutual funds. Private sector mutual funds had a higher percentage of assets under management from retail investors, while public sector mutual funds had a higher percentage of assets under management from institutional investors. The study provides valuable insights to investors, fund managers, and policymakers regarding the performance of private and public mutual funds. The findings suggest that investors may benefit from investing in private sector mutual funds due to their higher risk-adjusted returns, lower expense ratios, and higher allocation towards equity securities. Fund managers may also benefit from the study by gaining insights into the investment strategies and portfolio management practices of private and public mutual funds. Policymakers may use the study to design policies that promote the growth and development of the mutual fund industry. Overall, this study contributes to the existing literature on mutual funds by providing a comprehensive comparative analysis of private and public mutual funds in terms of their performance. The study adds to our understanding of the factors that affect the performance of mutual funds and provides insights into the investment strategies and portfolio management practices of private and public mutual funds.

Efficiency of Mutual Funds and Portfolio Performance Measurement: A Case of Selected Mutual Funds in Tanzania

This study examines the current efficiency trends in the Tanzanian mutual fund industry over a five-year span (2018-2022), focusing on six specific funds: Umoja Fund, WekezaMaisha, Watoto Fund, Jikimu Fund, Liquid Fund, and Bond Fund. Employing a non-parametric approach, specifically Data Envelopment Analysis (DEA), the research collects secondary data from diverse sources, including newspapers, journals, books, periodicals, and the websites of UTT and the Bank of Tanzania (BOT). Monthly Net Asset Values (NAVs) of the selected mutual funds are scrutinized from each scheme's inception. Motivated by the limited understanding of mutual fund efficiency in Tanzania despite reported successes in increased asset values, profitability, and investor numbers, the study reveals distinctive performances under Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) assumptions. Under VRS, all mutual funds consistently achieve nearly 100% efficiency, signifying optimal operational scales. However, under CRS, efficiency scores fluctuate over time, underscoring the importance of mutual funds' adaptability for enhanced efficiency. Furthermore, the research suggests that mutual fund size significantly influences efficiency and potential scale economies. Smaller mutual funds demonstrate superior resource utilization efficiency, attributed to their focused investment approach. The analysis of inputs and output slacks provides insights into efficiency and resource utilization, identifying areas of optimal resource management and highlighting opportunities for improvement. The findings offer valuable insights into mutual fund efficiency under different scale assumptions, emphasizing the importance of scale flexibility and efficient resource management for superior performance. Implications suggest avenues for further research to explore external factors, efficiency fluctuations, portfolio management practices, and longitudinal trends within the mutual fund industry.

The Study on of Art Portfolio Management of the Art Foundation – Use the Guy and Myriam Ullens Foundation as an Example

This study provides an in-depth examination of the existing literature on art portfolio management to understand the relevant theories and data analysis techniques. The Guy & Myriam Ullens Foundation is selected for the study, which scrutinizes the investment allocation strategies across different art categories and historical periods, as well as investigating investment criteria, risk mitigation strategies and investment returns. In addition, it analyses the operational framework of art foundations and summarizes successful portfolio management practices, providing a valuable reference for other art investment institutions and collectors. The study employs a multi-faceted approach, including literature review, case studies, portfolio theory and other research methods. This comprehensive survey addresses the field of institutional art investment.

Macroeconomic news and intraday seasonal volatility in the cryptocurrency markets

ABSTRACT We examine the effects of US, German, and Japanese macroeconomic news surprises and monetary policy decisions on the intraday cyclical volatility of Bitcoin and Ethereum markets. We first document intraday seasonality specific to each day of the week and show that these patterns exhibit a slightly different volatility compared to all-day seasonality. Second, the US monetary policy news and macroeconomic surprises generate the largest effect on the seasonal volatility. Third, Ethereum seasonality is more sensitive to macroeconomic fundamentals compared to Bitcoin. These results suggest that to improve cryptocurrency pricing, portfolio management, and risk management practices associated with cryptocurrency transactions, investors should consider the interactions between day of the week effects, intraday seasonality patterns and the macroeconomics news releases.

The Role of Project Management Office in Managing Project Portfolio Managem ent: A D escriptive S tudy i n Indonesian B anks

Purpose: This paper presents a preliminary study of the complete research to explore how strategic initiatives are implemented in Indonesian banks. It has the aim to descriptively compare the Project Portfolio Management (PPM) Capabilities and bank performance between banks that are applying Project Management Office (PMO) practices and not.
 Design/methodology/approach: Empirical research has been performed through a survey using questionnaires to define the contribution of formal project management office practices in managing strategic initiatives in Indonesian banks. The data from 82 banks from a total of 115 banks in Indonesia based on the list of Indonesian Financial Authority were collected and analyzed using descriptive analysis with help of statistical tools SPSS 22.
 Findings: As a preliminary stage, this paper found that banks with formal project management office practices tend to be more effective in managing their strategic initiatives.
 Research limitations/implications: However, further analysis still needs to be performed to explore how project PPM capabilities and PMO practices influence the bank's performance positively.
 Originality/value: This study introduces how the project management office and project portfolio management practices in Indonesian Banks at glance and how its comparison those with and without project management practices.

The Fundamental Review of the Trading Book: Implications for Portfolio and Risk Management in the Banking Sector

AbstractThe Fundamental Review of the Trading Book (FRTB) is the promised overhaul of bankmarket risk regulation. FRTB retains the authorized use of proprietary risk models, however, it introduces two additional criteria: (i) P&L attribution (PLA) tests and (ii) desk‐level backtests. We examine empirically whether these additional criteria influence risk management and portfolio management practice, specifically portfolio construction and choice of risk model. We find that the PLA tests demand significant alignment with risk factors, however, the backtests do not incentivize use of superior risk models. This has important implications for the efficacy of the capital‐based regulatory system.

Decentralised or centralised management of data and products: influence on revenue-generating processes

Products, services, product data, information systems, and business processes are very closely related issues. The products must be in control, and the product data and product portfolio suit the business to ensure process performance. Customers' demanding complex solutions necessitate considerations over decentralised or centralised management of data and products. Decisions on product and data management affect vital processes. Thematic analysis is applied to company product data management (PDM) and product portfolio management (PPM) practices to reflect the centralisation vs. decentralisation perspective and identify preconditions for centralisation. It appears that the volume of standard products, pressures to comply with regulations and standards, and product and process maturity influence whether a company benefits more from centralisation or decentralisation. Value is provided by revealing challenges of decentralised PDM and PPM, and by clarifying preconditions for centralisation. The findings indicate the order of priority for centralisation in terms of aligning processes and harmonising data.

Microfoundations of project portfolio regulation in joint university-industry laboratories

Joint university-industry laboratories (joint U-I labs) consist of a new, yet little understood model of academic partnership with the firms, typically involving the establishment of a collaborative research unit to conduct research and development (R&D) projects. This type of collaboration faces an ongoing challenge in dealing with the tension between the development and deployment focus in the project portfolio. While several studies have investigated project portfolio management in a given firm, little is known about the interorganizational portfolio management and how the actors manage tensions in joint U-I labs. This study aims to investigate the microfoundations of project portfolio management in joint U-I labs. By combining the multiple-case study and at-home ethnography methods, we identified that the regulation approach explains how partners in joint U-I labs dynamically adjust and manage the project portfolio. Based on the empirical findings, we propose a new framework for project portfolio management in joint U-I labs: portfolio regulation. This framework consists of four processes: dual scouting, dual matchmaking, joint selection, and bridgemaking. These microfoundations enable actors to strategically regulate the portfolio by increasing/decreasing resources related to development or deployment. Our study explores how portfolio regulation evolves within a joint U-I lab through four stages: formation, learning, reconfiguration, and joint portfolio. The proposed framework contributes to interorganizational R&D portfolio management theory and joint U-I lab portfolio management practice.

Agile Projects in Nonagile Portfolios: How Project Portfolio Contingencies Constrain Agile Projects’ Teamwork Quality

Agile practices present one approach for firms to adapt to an increasingly dynamic and competitive environment. Although prior studies have investigated performance outcomes of agile projects, agile practices’ consequences on a project team's collaborative processes have not yet been thoroughly analyzed. It also remains unclear whether practices on a higher organizational level, such as project portfolio management (PPM), support or constrain agile practices’ benefits, especially if a firm simultaneously conducts traditionally managed and agile projects. Therefore, this article investigates the role of agile practices for a project's teamwork quality (TWQ) and project success and examines the influence of organizational contingencies. Specifically, we conceptually and empirically analyze the moderating impact of PPM practices on the relationship between agile practices, TWQ, and project success. A multi-informant analysis of 378 projects nested in 100 portfolios shows that agile practices positively relate to project success through TWQ. We find that traditional PPM practices such as business case existence, strategic clarity, and operational control constrain this relationship. Our article contributes to the literature on project teams and portfolio management by providing empirical insights on the interaction between project and portfolio management practices.

Agile project portfolio management as a strategic enabler in the Brazilian marketplace: five case studies and one substantive theory

PurposeThe purpose of this study is to present an empirical framework for changes, communication and team restructuring developed through a substantive theory that defines the relationships between Agile adoption and organizational strategies in the Brazilian marketplace, providing assertive propositions.Design/methodology/approachThe research analysed five case studies of private companies in the Brazilian market, adopting the grounded theory (GT) method to examine the relationships between the categories. There was consistency in the reality of 22 participatory interviews with experts in Agile in the five case studies. The excellent integration between the chosen methodological approach and the organizations' characteristics reinforces a strategy focused on mixed methods.FindingsAs a result, the authors deploy an empirical framework, displaying new strategies that generate structural changes, obtaining Agile information technology (IT) project portfolio management (PPM) practices and strategies with superior performance. The necessary responses through organizational structural changes are observed, making it possible to notice changes in routines and contingencies.Research limitations/implicationsSome limitations should be pointed out for this study. The case studies were carried out in private companies in Brazil, and cultural aspects must be considered if one wants to generalize. Furthermore, to underline the effects of time, a longitudinal study would have to be employed to improve the interpretation of the results. Another limitation applies to the framework proposed in our study and its reality-simplifying nature. Models and theories with these visible generic characteristics compromise understanding specific situations.Practical implicationsThe authors strongly recommend that teams focus on communication among stakeholders to increase the ability to adopt Agile and create valuable knowledge inside the organizations, architecting process innovation.Originality/valueThe forged strategic Agile substantive theory contributes to the competitive Brazilian IT company departments. The need for velocity in organizing teams, accomplishing changes and efficient communication challenges connecting value creation with project results.

Financial Management Practices and Financial Performance of Deposit Taking Saccos in Nairobi City County, Kenya

Purpose: The purpose of this study was to examine the effect of financial management practices on financial performance of SACCOs in Nairobi City County, Kenya.
 Methodology: This study adopted an explanatory research design. The target population consisted of the 215 deposit taking SACCOs in Kenya. A sample of 41 deposit taking Saccos in Nairobi city County registered by SASRA for the period 2015 to 2019 was drawn from the target population. Thus, the 41 deposit taking SACCOs as registered by SASRA and their published financial statements constitute the unit of analysis and unit of observation respectively. The census sampling method was used in order to gather enough information since the number of SACCOs is limited and justifies the requirements of efficiency, reliability and representativeness. Further, secondary data was also collected through data collection schedule. Facts and figures were collected through published financial reports and statements of deposit taking SACCOs licensed by SASRA in Nairobi County for the period 2015 to 2019 and the key financial information on the variables of concern were discerned from these reports. The data for this study was panel and therefore the STATA software was used for analysis under panel regression model. Descriptive analysis were done to explain the basic features of the data. Inferential analysis was done afterwards based on panel regression which was then used to test the research hypothesis according to the research specific objectives. The testing was under the 5% significance level.
 Findings: The results of the study revealed that fixed asset, loan portfolio, cash asset and financial investment management practices were positive and significantly correlated to financial performance of DT-Saccos in Nairobi City County. In addition, the results also indicated that financial investment management practices had a more positive and significant effect on financial performance, followed by loan portfolio management practices, then cash asset management practices and lastly fixed asset management practices. The moderating variable, sacco size was found to have a moderating effect on the relationship between financial management practices and financial performance of DT-Saccos in Nairobi City County.
 Unique Contribution to Theory, Practice and Policy: The study recommended that the management of DT-Saccos should consistently ensure they prepare cash budgets and maintaining a cash book so as to be able to manage their cashflows especially from the account receivables and account payables. They should also implement effective financial investment management practices that can help them reduce the risk of financial losses from investments such as projects or securities. The study findings may help policymakers in DT-Saccos such as the SASRA to enforce better loan portfolio management policies that encourage their customers to purchase loans and reduce cases of loan defaulting. Moreover, these policies may also be used to reduces the number of non-performing loans which have a significant effect on the ROA of the DT-Saccos. Researchers and Scholars could benefit from this study by use of the theories that were discussed in this study. They can also use the results to validate and corroborate findings of their own study.

The portfolio planning, implementing, and governing process: An inductive approach

Portfolio management has long been viewed as a major source of competitive differentiation in technology-intensive organizations with substantial R&D investment. Yet, little work has addressed how portfolio management unfolds. Furthermore, the extant work has largely conceptualized the portfolio management process in a deductive manner, offering limited propositions for understanding the inner workings of portfolio management in real-world settings. Drawing on an inductive, qualitative study of nine cases in the electrical machinery, medical device, and pharmaceutical sectors, our work opens the black box of portfolio planning, implementing, and controlling process in practice. We find that organizations manage portfolios through five interdependent phases (ecosystem surveillance, portfolio strategy development, business case management, portfolio decision-making, and new product/service management), with four distinct actors (corporate, top management, portfolio management, and portfolio management governance functions) being actively engaged in different phases. Our study also established three main levers that shape the portfolio management process in practice (governance, integration, and information). Based on these findings, implications for portfolio management studies and practices are discussed.

Project portfolio management practices - a theoretical base and practitioner guidelines

Project portfolio management practices - a theoretical base and practitioner guidelines

Project portfolio management practices - a theoretical base and practitioner guidelines

Project portfolio management practices - a theoretical base and practitioner guidelines

Relationship between project governance, project portfolio and best practices in an energy transmission company

Purpose: This article aims to investigate how project governance, project portfolio management and best practices are related in a company in the Brazilian electricity sector, considering the gaps identified in the management of its projects and the results of them. Methodology/Approach: In order to subsidize this study, in theoretical terms, the study is supported by a systematic survey of the literature and, in empirical terms, it conducts an investigation with 18 key employees of the organization through the application of a questionnaire, with a view to confronting the perception of respondents with the relevant concepts found in the literature. Findings: In the empirical research, on the other hand, made it possible to investigate the perception of respondents from different groups in relation to the organization's adherence to the proposed themes. Research Limitation/implication: The studies were not carried out outside the environment of the selected company, nor are extrapolations made to other organizational realities, although it recognizes that this study can contribute to influencing companies in the same or different segment to deepen into the above theme. Originality/Value of paper: The proposed research is applicable in all organizations or sectors that are strategically project oriented.

Commercial and Technical Productization for Fact-Based Product Portfolio Management Over Lifecycle

Increasing product variety and expanding commercial offering create a challenge for companies in terms of keeping their product portfolio profitable and managing it through the entire lifecycle of products. Effective productization and product portfolio management (PPM) practices, supported by product structure considerations, may hold a key for product profitability over lifecycle. This article examines the current practices and improvement possibilities in productization and PPM, including the targets and key performance indicators (KPI), by considering the product lines of a global engineering company. The analysis utilizes the previous literature, company interviews, and relevant company materials. The article demonstrates company difficulties, which are stemming from inadequate definition of productization and imperfect PPM targets and KPIs over the product lifecycle. An initial framework is formed to support more holistic productization over product lifecycle alongside creating suitable PPM targets and KPIs.

ANALYSIS ON PROJECT PORTFOLIO MANAGEMENT PRACTICES IN INDIAN CONSTRUCTION INDUSTRY

Project Portfolio management (PPM) is a combination of projects under the sponsorship of a particular construction organization sharing the scarce resources, managing projects and programs within the portfolio. It requires different strategies, models and practices. Many organizations across the country have projects in their sector in different places. However they abandoned temporarily suspended or closed within a decade which is troublesome. Proper PPM helps to execute the construction project effectively. As such, the aim of this research paper is to identify PPM practices in different construction organizations with a view to examine the effects of such practices on the project portfolio. The current research topic focuses on analysing the project performance of different construction projects using Project Portfolio Management practices. In this research a questionnaire survey related to the Project Portfolio Management on four major practices is carried out among the various professionals in Indian Construction Industry with help of Multi Criteria Decision Making (MCDM) techniques such as Entropy Method, SAW, CODAS methods and ranking the various project portfolio.