ABSTRACT
Portfolio management is focused on the achievement of the organisational strategies and objectives. The implementation of organisational strategies and objectives might take anything from months to years. The discipline of portfolio management owes its origins to a seminal paper written in 1952, in which Harry Markowitz laid down the basis for the Modern Portfolio Theory (MPT). MPT allows determining the specific mix of investments generating the highest return for a given level of risk. The aim of portfolio management is to diversify investments in such a way that it reduces the total risk of a portfolio, but this must be done in an effective way and manner. In the realm of portfolio management, the aim is to optimise the total financial value of all the projects within a portfolio, but at the same time, risk exposure should be minimised. Organisations must create the functional structures that own and provide portfolio management.
