construct an investment portfolio and manage it

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The module is assessed by 100% assignment. During semester 1 (week 3 to 12: total 10 weeks) you are required to construct an investment portfolio and manage it. Your objective is to outperform the relevant performance benchmark. Your benchmark is a portfolio consisting of 70% equities and 30% cash. Equity portfolio benchmark is the FTSE 100 Equity Index (UK campus students) or Hong Kong Hang Seng Index (HK campus students). Cash benchmark rate of return is LIBOR (UK campus students) or HIBOR (HK campus students). You are encouraged to use Bloomberg Financial Database for portfolio construction and analysis Document Preview: Unit Code: FN0367 Unit Title: INVESTMENT MANAGEMENT, RATIONAL & IRRATIONAL MARKETS Distributed on: 07/10/1 1 Hand in Date: To be advised Instructions on Assessment: The module is assessed by 100% assignment. During semester 1 (week 3 to 12: total 10 weeks) you are required to construct an investment portfolio and manage it. Your objective is to outperform the relevant performance benchmark. Your benchmark is a portfolio consisting of 70 % equities and 30 % cash. Equity portfolio benchmark is the FTSE 100 Equity Index (UK campus students) or Hong Kong Hang Seng Index (HK campus students) . Cash benchmark rate of return is LIBOR (UK campus students) or HIBOR (HK campus students). You are encouraged to use Bloomberg Financial Database for portfolio construction and analysis. Trading rules include these: No use of futures or options or short sales and No gearing. Week 3 Start with £1,000,000 (UK campus students) or HK$ 1,000,000 (HK campus students) and invest in any of the assets including, individual equities, sector ind ices , equity market ind ices , ETFs ( “ exchange traded funds ” ) or any tradable currency. During the portfolio management period (Week 3 to 12) , you are required to rebalance your portfolio to realise your investment objective. You must value your portfolio and take into account the following transaction costs: Individual equity switch 1 % Equity index and ETFs switch 1% Cash (currency) ½ % Week 12 At the end of Week 12, stop portfolio management and carry out final valuation. In your final investment report, you are required to address the following: Discuss your investment philosophy and your market view. Make clear what assumptions you made to forecast the market. Based on your market view, explain how your asset allocation decisions match with your investor profiling. (10 marks) Discuss your rebalancing strategies. In this section, you should ... Attachments: FN0367-Assign....doc Dec 15 2011 01:53 PM

 

Solution ID:608858 | This paper was updated on 26-Nov-2015

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