Portfolio Management Department

Strategic Planning
Submitted BY

Shulav Shrestha (18526)

2019
1. EXECUTIVE SUMMARY
This strategic plan is being prepared to reposition ourselves by assessing the market positioning
of our Portfolio management service product, analyze the gap from the market leaders, analyze
new market prospects for the product with study of the market demand and the long-term goals
and the way to achieve those goals.

2. INDUSTRY ANALYSIS
2.1. Porters Five Forces Analysis
2.1.1. Competition in Industry – HIGH
2.1.2. Threat of New Entrants – HIGH
2.1.3. Threat of Substitute – HIGH
2.1.4. Bargaining power of supplier – MEDIUM
2.1.5. Bargaining power of customer – HIGH

2.2. SWOT Analysis

2.2.1. Strength
 Parent company’s brand name
 Flexibility in product offered
2.2.2. Weakness
 Inexperienced team in investments
 High staff turnover in investment dept.
2.2.3. Opportunity
 Formation of long term government
 Decentralization (Federalism)
 People’s increasing attraction and preference towards share market
2.2.4. Threat
 Unstable macroeconomic environment
 High interest rates and liquidity crisis
 Increasing number of merchant bankers

2.3. GAP analysis with market leaders

 Time span and exposure in capital market
 Proven track record of high return in previous bullish market
 Developed market network and relationship
 Established investment team

2.4. Industry Positioning

Currently positioned 8th in the market with market leader have 1.3 arab AUM while
ours is 10.5 crore only.

3. VISION
To become the market leader in terms of volume for PMS Service rendered within four years
down the line
4. MISSION
To deliver personalised investment solutions aligning to the clients requirements to aid to their
financial wellness as a good corporate citizen.

5. YEARLY GOALS
With an extensive brainstorming session with people in investment department and business
development department, both the departments have agreed to define the target AUM of 2.5
Arab. The target for the month is to achieve an incremental AUM of 51.75 crores plus 10%
growth every year. The short-term goal for the coming year is to be the market leader in terms
of incremental volume achieved in the PMS Service.
F/Y Market Our Share Incremental Leader's share Incremental
Growth in growth Growth in Growth Growth
2075/76 120.00 51.75 43% 28.32 24%
2076/77 126.00 56.93 45% 28.67 23%
2077/78 132.30 62.62 47% 28.92 22%
2078/79 138.92 68.88 50% 29.06 21%
Total Growth in four years 240.17 114.97
AUM at end of forth year 250.17 244.97

6. ACTION PLAN
a) The primary target for PMS will be the institutional clients. The banks and financial
institutions needs to be proposed for PMS service.
b) The working professionals will be our second target group for the PMS. Those who are
occupied by the work might choose PMS as an alternative to manage their wealth.
Seminars, programs, interactive events will be targeted to be conducted in the hospitals,
law firms, large corporations etc.
c) High value customer of bank as well as DP department will be our other target group.
d) Extensive marketing and awareness program will be conducted regarding investment,
shares, investment management in different sectors.
e) Target for PMS will be focused on other major cities outside Kathmandu, where access
to broker are not easy due to which investing and getting exposure to stock market could
be difficult.
f) If we are able to open up the branch or set up a contact point on behalf of NIC ASIA
Capital in other cities, the person would be used to market the PMS product among the
prospective high net worth clients of NIC ASIA Bank Limited.
g) Trading frequency of PMS will be increased to book the profit then we are doing now.
The orientation will depend on the client’s requirement and will not just be focused
towards a long-term horizon only.
h) The branding and marketing through social sites and online sites will be extensively
increased during the year.
i) Target to set up share clinic through stalls and campaign in major malls within the
Kathmandu valley.
7. PROBLEM STATEMENT
a) One of the major issue to address would be the Cost VS Profit analysis. As the service
Fee of PMS is already nominal, extensive expense in branding, promotion and
advertisement could have a big impact on the Profit of the organisation.
b) The volatile return of PMS and the market risk associated with it has the major impact
on opting for the service. People aren’t confident when the return is not guaranteed and
when they are exposed with probable loss as well. A return guaranteed portfolio in
present condition is of huge risk to offer but, without the guarantee people aren’t
attracted toward the product.
c) The market volatility and bearish market trend has impacted on the performance of the
portfolio (in a short run) which portfolio clients don’t take it positively.

8. ALTERNATIVE
Considering the market scenario, return guaranteed product seems risky proposition for the
organisation, so instead considering the bearish market movement, a principle guaranteed
product will be launched with focus on safer investment and considering the market trend for
next three years, principle guaranteed product would not bring considerably high risk
considering the need to lock the PMS for three years compulsorily.

9. RESPONSIBILITY
The business development department will have the major responsibility for achieving this
target with input, support and coordination from Head – PMS. The performance will be
evaluated based on following KPIs,
(KPI) Impact Definition
No. of New Customer Positive Number of new customer contracted
No. of Proposal Sent Positive Number of proposal offering for to institution.
No. of new initiative Positive Number of new initiative for attracting new customers
launched and initiative to offer the service in a better way
No. of customer Positive Number of product briefing to new prospective
pitched individual customers
No. of campaign Positive Number of seminars, awareness programs, interactive
conducted session regarding investment management.
Growth in Portfolio Positive The profit generated on the investment by client and
Value the profit made in their portfolio
Customer Satisfaction Positive Positive customer feedback and reviews.
No. of Lost Customer Negative Number of customer leaving the service
No. of complaint Negative Number of complaint received from the customer
Count of Error Negative Count of error in delivering the reports, service,
execution of trades etc.