Assessment Period: December 2024 (A1)

Please answer, after carrying out research on suitable investment strategies, investment funds, investment trusts or ETFs, the questions below. Your answers should be brief and provide a clear recommendation for the  best investment strategy, fund, investment trust or ETF, with a short explanation for your choice. Before you make your recommendation, please:

(a)  consider the current macroeconomic environment across the world

(b)  think about which region or countries are likely to dowell in the next 5 to 10 years; and

(c)  consider major investment themes that were discussed in the module.

Please also read “Further guidance on writing your report” (see below) before you write your answers. You must answer all questions.

PART A (30 MARKS)

1. Real Estate (8 marks)

Identify three suitable investment products (an investment fund, trust or ETF) that invest in real estate and recommend one product that you think would be the best choice.

The funds, or investment trusts or ETFs should be listed in London or should be accessible by a UK investor, and should relate to supertrends we explored. The reasons for your recommendation should be explained and include a comparison between the funds or investment trusts or ETFs you identified.

2. Infrastructure (8 marks)

Identify three suitable investment products (which could bean investment fund, an investment trust or ETF) that invest in infrastructure and recommend one product that you think would be the best choice. This can include infrastructure debt, infrastructure for technology e.g. telecommunication towers, broadband infrastructure etc as well as infrastructure for health, defence, transport etc.

The funds, or investment trusts or ETFs should be listed in London or should be accessible by a UK investor. The reasons for your recommendation should be explained and could include, for example, cost, fees, performance, industries or regions or types of infrastructure in which the fund invests etc. Your reasons should include a comparison between funds or investment trusts or ETFs you identified.

Before answering this question, you might find it helpful to listen to Goldman Sachs’s podcast on Infrastructure    Investing    (available    at https://www.goldmansachs.com/insights/goldman-sachs- exchanges/02-29-24-infrastructure-teresa-mattamouros. A transcript of the podcast is available at https://www.goldmansachs.com/pdfs/insights/podcasts/episodes/02-29-24-infrastructure-teresa- mattamourous/transcript.pdfand is also available on Canvas)

3. Alternative Investment strategies (8 marks)

PSP, one of Canada’s largest pension funds (website investpsp.com) with around CAD250bn in assets has a portfolio of investments across alternatives including 15% in private   equity, 13% in infrastructure, 10% in real estate, 9% in credit investments and 5% in natural resources.. Which two of these asset classes do you consider would perform the best irrespective of market conditions, and why? Please explain in detail the reasons for your choices.

4. Shipping, Aviation or Transportation (6 marks)

Identify one investment product (an investment fund, trust or ETF) that invests in shipping, aviation or other transportation, keeping in mind the super trends we explored. Give reasons for your choice.

PART B (30 MARKS)

5. Thematic ETF (30 marks)

Identify three thematic ETFs that you think offer the most promising opportunities for investors. The ETFs should be listed in London or be accessible by a UK investor. Give reasons for your choice.

Before answering this question, you might find it helpful to review thematic ETF related publications of banks and investment managers, including:

•    Legal        &        General https://www.lgim.com/en-fi/adviser-wealth/capabilities/our-etf- range/thematics/,

•    BlackRockhttps://www.ishares.com/uk/professional/en/themes/thematic-investing,

•    Deutsche  Bank https://etf.dws.com/en-gb/knowledge/focus-topics/future-trends-investing- in-xtrackers-thematic-etfs/,

•    State  Street Global Advisers https://www.ssga.com/us/en/intermediary/capabilities/invest- thematically-in-new-economy-etfsand

•    Global X, the investment unit of Mirae Asset,a South Korean asset manager which has several investment themes-based ETFshttps://www.globalxetfs.com/thematic-growth-etfs/

PART C (40 MARKS)

6. Supertrend and Reflective Analysis (40 marks)

Identify one supertrend or megatrend that you think will be the most promising to follow for the next 20 to 40 years. Explain the reasons for your choice, in detail, and identify two products (a fund, an investment trust or ETF) which allows an investor to invest in your chosen trend. You cannot select a trend that is covered by another question in this paper. This question allows you to demonstrate your broader research and reading in the investment sector.