Maximum Word Length: 3,000 words
The word count is for the main body of the text and ignores the reference list and appendices. If you exceed the word length you will be penalised. For details
see the Management School Handbooks. Please note that SUMS does not have a word count tolerance – it is a stated maximum.
Requirements:
As a fund manager, you raised one billion dollars to invest in five assets of your choice. Your investors want your investments to be limited to the following
categories: stocks, commodities, Exchange Traded Funds (ETFs), and Fama-French sorts. You can pick all your assets from one category, or you can combine
assets from multiple categories. Your investment started in January 2010. It is the end of December of 2021, and you are required to produce a detailed report to
inform other fund managers how your investments performed. The report should:
1. Provide a clear overview of the investment approach that you relied on. This overview should be backed by a clear justification of why you expect this approach
to be profitable, and how it fits the needs of your clients and the macroeconomic environment. (20 marks)
2. Describe the chosen assets, their riskiness, and how they fit into your investment approach. (20 marks)
3. Present the approach and constraints used in determining the weights of assets in your portfolio. (20 marks)
4. Assess the performance of your strategy for the period between January 2010 and December 2021 using a wide range of metrics. You should also emphasise
the key drivers of your portfolio’s performance. (20 marks)
5. Highlight the impact of the COVID 19 pandemic on your portfolio and discuss possible adjustments in your investments for the upcoming years. (20 marks)
General requirements
It is expected that you will draw upon a range of literature, academic and industry journals, Bloomberg, and other information sources throughout your report to
provide support for your arguments. Sections are generally expected to have roughly similar word counts, but marks will not be reduced if one section is slightly
larger than the other.
Feedback on this assignment will be provided to you in writing within the agreed university turnaround time. Individual meetings are available on request to
discuss the feedback