McJolly Food Corporation

What are the changes you will make on the portfolio?

We think that the portfolio is appropriately diversified thus, changes would be minimal. There
should be an increase in the investment for the Sunlife guarantee by 200,000 which is initially
allocated for the forex investment. With such changes, a total of PHP 800,000 would be invested
in Sunlife.

What are the investments you will take to optimize the earnings of the present portfolio, taking into
account the planned expansion in 2023?
As the Portfolio Manager of McJolly be, we can optimize their earnings through investing in Stock
preferably in Jollibee Food Corporation (JFC) because of its positive cash flow. Optimizing the
earnings of McJolly by investing in JFC will continue generating positive returns. With this
additional source of investment fund it can financially benefit McJolly increasing the success of
the planned expansion in 2023.

With the spread in the portfolio, how much are the actual earnings from various investments based
on the company’s financial policies?
Based on our calculation, the actual earnings from various investment based on the company’s
financial policies is ₱7,031,234.

Enumerate each investment and indicate the projected earnings. You may provide your computation
as well.
Asset Type Description Initial Value Interest Interest Return/
Rate Earnings
Time 13th month pay accrued each ₱ 400,000 6% ₱ 36,344 ₱ 436,344
Deposit month (always on Time Deposit )
Equities Sunlife guarantees (1-year hold- ₱ 600,000 16% ₱ 96,000 ₱ 696,000
out period)
Fixed T-Bills (PA 3/12 months) ₱ 3,571,500 2% ₱ 71,430 ₱ 3,642,930
Income
Securities
Fixed Bond Investment (Maturity year ₱ 500,000 4.875% ₱ 243,750 ₱ 743,750
Income of 10)
Securities
Foreign XM and Vantage Forex ( ₱ 200,000 5% ₱ 10,000 ₱ 210,000
Currencies
Other Short term securities ₱ 1,260,000 3.35% ₱ 42,210 ₱ 1,302,210
Investment
₱ 499,734 ₱ 7,031,234

Enumerate the possible risk involved in the different asset classes and the fastfood industry in
general.

Risk in the different asset classes

● Low investment returns
● High risk investments
● Control Risk
● Unable to pay debt
● Foreign currency risk
● Volatility
● Market risk
Risk in the fastfood industry
● Greater chance of net loss
● Natural disasters
● Dirty restrooms
● Unfocused employees
● Untrained workers
● Missing fire extinguishers
● Loss, theft, or damage of valuable property