Investco Portfolio Report

Investco Group
Andra

1701293830

Bernard Horison

1701298806

GracellaTanujaya Tjhin

1701296126

Triana Susantheo

1701315390

Siska Adeliani

1701340581

Introduction
Purposes

The low level of interest rates almost equal to

inflation forcing people to be smarter in
managing their funds.
the portfolio is probably one of the most
attractive investment alternatives at this time in
terms of its risk and return

Scope
Background
IHSG as a
benchmark for
the portfolio

The investor is a 30year-old businessman

Hes married and has
one child of 4 years old
The investor is willing
to invest 40 percent of
his income per month.
The invested funds are
intended for pension
funds and education
funds. He wants to
invest the money for a
period of 10 years.

Investment Risk
Banking
Industry
Service
Problem

Change in
Interest rate
and
exchange
rate

New
Regulation
Governance

Inflation
and
deflation

Liquidity
needs and
hacking
system

Investment Risk
Cement Industry

Geographic
challenges

Slowing
growth
economy
Over supply
product

Natural
disaster

Investment Risk
Telecommunication Industry

Poor signal

New
Technolo
gy
Damaged
Satelite

Investment Risk
Consumer Goods
Industry

Saturated
Customer
Governan
ce
Regulatio
n

Weather and
natural
disaster

Investment Risk
UNTR Risk

Sparepar
t Supply

Broken
Product

Decreasin
g in
mining

Currency
Risk

Investment Risk
Retail Industry
Stolen
product
Changes
in
regulatory
Saturation
product
Out of
Supplier

Method
Search for
the
companies
that included
in the IHSG
or JKSE

Decide 10
stocks that
going to be
included in
the portfolio

Buy the
stocks on 1
December
2015 and sell
it on 30
December
2015
Appendix 12

Determined
the weighted
of each stock
by using the
solver addson
Appendix 7 &
8

Determine the
return, beta and
standard
deviation of the
portfolio
Appendix 10,
11& 14

Analyse the
portfolio by
using Treynor
and Sharpe
method

Search for
the stock and
IHSG closing
adjusted
price
Appendix 1

Determined
the wanted
return
Appendix 13

Determine
whether the
portfolio has
beaten the
market.

Calculate the
returns, standard
deviation
variance, and
beta of the stocks
and IHSG
Appendix 2,3&9

Calculate the
correlation,
covariance and the
weighted variance
of each stock
Appendix 4, 5 & 6

Assumption
Macro Overview :
The impact of China's Economic Slowdown for
Indonesia
-Drop demand for imports from Indonesia
-Low commodity price cause by low oil prices
-Devalues Yuan by China make indonesia need
to weak
the rupiah
- Weak Rupiah cause problems for Indonesian
companies

The impact of the Fed's rate increase to

Indonesia economic
With the FED raises its benchmark interest rate to 0.25 %
-0.50 % cause Short and long term effect
Short term :
there occurs the flow of foreign capital out of developing
countries, including Indonesia
there is pressure on the currencies of countries in Asia
including the rupiah
the US dollar will be strengthened significantly
Long Term :
-US dollar will weaken again due to rising interest rates the
US central bank edged up 25 basis points
-The US dollar has a new rival that of the Chinese currency
yuan, or renminbi

Industry Overview

Finance Sector

With the Credit enhancement rise from 10% to 11% more. Become an
evidence of the increasing number of credit or loans issued by finance sector

Stocks in finance sector have a high performance during Quarter 4 in 201 5

because the inflation in that time begin to low also a high gain on finance
section during quarter 3 in 2015 make stock in Finance index rise significantly

Consumer Goods Sector

Stocks in consumer goods sector have a defensive character, which means

that this stock performance will not be affected by the shock or huge economic
changes and these type of shares will remain stable over a period or uncertain
conditions and also during a recession,

With the low level of inflation in October November that drop -1,36% from
6,25% in October and make inflation level 4.89% in November show the
purchasing power is decreasing that make the low performance of consumer
goods sector that was the reason why consumer goods index in Q4 2015
decreasing significantly.

Basic Industries & Chemical

Index

Basic chemical industry growth supported by rising

chemical demand of each industrial sector for example, as
the plastics industry are expected to rise 8% and cement
are projected to increase 10% to 14%. The increase in this
industry motored by demand for chemical raw material for
other industries

Trade Service & Investment

Sector

Stock in this sector is cyclical fundamental performance of

these shares increased only in certain seasons that remain
will use the services, trade and investment . types of stocks
in this sector are not affected by macro-economic conditions
as well as the general business situation
The trend over the last 5 years show that this sector
trade, services, and investment raised an average of 3.16%
meaning that the trade sector scored the highest compared

Infrastructure, Utility & Transportation

Sector

Even In the period of slowing economic growth in the first

quarter and the second quarter in 2015, the communication and
information sector still showed positive growth at 1.2%.
In the reign of President Joko Widodo (Jokowi) calls for largescale infrastructure development
Acquisitions by government are effectively running, illustrates
the seriousness of the government in infrastructure sector. Not
only that, one-stop service (one stop) for a business license as
well as the construction of power plants makes this sector more

Correlation

Stock Analysis

Recent News of Company

Policy Statement
Investment Objectives
This portfolio is actively investing in stocks that are undervalued and or
potentially to provide a level of return above the average, with LQ45 as a
benchmark for the stock to choose and IHSG as a benchmark for the
return.

Investment Policy
The effects are a 100% shares

Investment Target Return

IHSG in 2014 period will have a return of 22.4% yearly, weekly 0.43% . We
targeted a return of 0.53%, 0.1% above the market

Limitation/Constraint
1.

Liquidity Constraint
Investor manajer must be prepared for liquidity needs which at times

will be used by investor

2.

Time Horizon
The time horizon for this fund is long term investment (10 years).
3.
Tax Concerns
Final tax on every transfer of shares in the stock by 0.1% (or an
additional 0.5% for founder shares)
4.
Legal and Regulatory
The regulation that controls trading and investment in Indonesia is in the
Undang-Undang Republik Indonesia No. 25 Tahun 2007

5.

Limited Selection
Theres a limited stock in choosing shares for invests. Because of
those circumstances
6.
Limited Funds
The total investment funds that will be used for invest in
Investment fund will be limited to only Rp 1.000.000.000

Portfolio Performance
Treynor

Sharpe

Portfolio Conclusions