FIN 5A9: Principles of Investment Management 2020/2021
1
FIN5A9 Principles of Investment
Management Academic Year 2020/21
Instructions for Investment Portfolio 1 and 2
Due in weeks 12 & 24
Dr Jacob H Schmidt PhD MSc
Senior Lecturer, Finance, Faculty of Business and Management
Regents University London
Faculty Centre for Applied Finance and Banking, Regents University London
FIN5A9 Principles of Investment Management 2020/2021
2
Instructions for Investment Portfolio due Week 12
Detailed description of assessment
Assessment 2: group work
25% TMM Construction of a traditional long-only
equity or bond portfolio (1 to max 4 per
group)
Group Work:
Objectives of portfolio: build a traditional long only portfolio
Write a report, present in class (formative a.) and submit by week 12
Short presentation in class / seminars in week 12
Individuals or groups of maximum four (the larger the team the more detailed the report has to be)
Paper explaining process, selection and investment objectives.
Report of 5-20 pages with portfolio calculations
Marking Rubric for Paper: Marks allocated to criteria:
a) Investment mandate: asset classes (equities, bonds, property)
10%
b) Investment objectives: S-T, M-T, L-T; value, growth; defensive, moderate, aggressive.
20%
c) Implementation / strategy: you can use individual securities or funds / ETFs
20%
d) Portfolio: asset allocation (strategic and tactical), display risk factors (alpha, beta, duration, FX et al) as applicable. Correlation to markets.
20%
e) You might also want to backtest the portfolio.
10%
f) Recommended: use of Bloomberg or Reuters software / terminals.
10%
g) Grammar
5%
h) Proper use of the referencing 5%
FIN5A9 Principles of Investment Management 2020/2021
3
Instructions for Investment Portfolio due Week 24 TERM 2
Assessment 4: group work
25% TMM Construction of a hedged equity, bond,
FX or derivatives portfolio (Long / short,
market neutral, arbitrage or trading
portfolio) (1 to max 4 per group)
Objectives of portfolio: build a hedged portfolio building on the portfolio of Term 1 or creating a new portfolio
Focus is on improving the Sharpe Ratio
Write a report, present in class (formative a.) and submit by week 24 (12 in term 2)
Short presentation in class (seminars) between weeks 3- 10
Individuals or groups of maximum four (the larger the team the more detailed the report has to be)
Paper ex
