FINN3021
Security Investment Analysis
Undergraduate Programmes 2024/25
Summative Assignment
During Epiphany Term you are required to construct an investment portfolio and manage and monitor its performance. The investment/portfolio construction period runs from Monday 27th January until Friday 21st March 2025.
An initial fund of $1,000,000 is available to purchase assets (equities, bonds, mutual funds, and ETFs). The total number of transactions permitted for the assignment is limited to 300 for the investment period.
You may use whatever platform. you wish to construct your portfolio e.g., StockTrak, Bloomberg etc., however, you must adhere to the parameters outlined above.
Details of how to register for an individual StockTrak account (should you wish to use this platform) are outlined on the module’s Blackboard Learn Ultra site. Please note, however, that you should not reuse the same account that was used for the group formative assignment.
The assignment will be assessed by means of an individual written report that critically addresses all of the following:
• the investment philosophy that underpins the construction of the portfolio.
• the investment strategy adopted in constructing your portfolio (your investment philosophy and strategy should be carefully distinguished from one another).
• the nature of the prevailing economic and financial environment that shapes your investment decision-making and the potential impact of these on the performance of the portfolio.
• the rationale for the allocation of assets between broad sectors and the principles that have guided the choice of individual securities (the application of technical and/or fundamental analysis).
• the performance of the portfolio in relation to a chosen benchmark (and a justification for the choice of benchmark).
• the risk/return characteristics of the portfolio using appropriate portfolio performance measures (consideration should be given to the performance of your portfolio in terms of security selection, market timing, and diversification).
• the strengths and weaknesses of your investment strategy and how any lessons learned might alter your investment decision-making if you were asked to construct a new portfolio at the end of the simulation period.
• Furthermore, the discussion above should be underpinned by appropriate academic and practitioner literature as necessary.
• Finally, as this is an investment report, presentation is important, and elements expected in an investment report should be present e.g., such as charts, graphs, tables, section headings.
Please note that the assignment will be assessed based on your written report and not on the performance of your portfolio over the investment period.
Overall word limit: 3500 words