The restructuring of the portfolio

As a result, the variable ratio of speculative and conservative parts of the portfolio investor constantly varying the composition of the securities portfolio, taking into account the prospective dynamics of their market value. If the results show a more favorable prognosis dynamics of the market value of securities of a speculative portfolio, their share is growing in the event of a corresponding reduction in the proportion of securities of the conservative part of it. By contrast, the forecast of unfavorable dynamics of the market value of securities of a speculative portfolio, their share is reduced accordingly. The subordination of the prospective portfolio restructuring dynamics of speculative market value of securities reflects the ideology of pro-active approach to management. 5. The restructuring of the portfolio for specific types of securities. Methods of this restructuring the portfolio are determined by fundamental approaches to its implementation. In the passive approach to portfolio management operational focus in the implementation of this phase of restructuring the portfolio to the realization of its diversification within certain types of securities. With an active approach to operational management of the portfolio focuses on this phase of restructuring the portfolio given to finding and purchasing undervalued securities (market price is below their actual intrinsic value, determined on the basis of valuation of net assets). Category: Management Operations Commercial Bank | Tags: Restructuring