ASB-2522 Investment and Portfolio Management

TASK

Assume that you have been hired as portfolio manager to devise a security portfolio that could potentially outperform the Standard and Poor's 500 (S&P 500). You believe that investing in exchange-traded funds (ETFs) is an efficient way to build an optimal portfolio, without having to select individual stocks or bonds. To begin, you build a portfolio that consists of six tradable ETFs: the iShares UK Dividend ETF (IUKD.L), the Vanguard FTSE All-World High Dividend Yield ETF (VHYL.L), the Schwab U.S. Dividend Equity ETF (SCHD), the Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE), the Vanguard Small Cap Growth Index Fund (VBK) and the Vanguard Small Cap Value Index Fund (VBR). You are required to backtest your strategy using real data over the last five years, from 1st January 2019 to 31st December 2023.

You also should decide whether or not to include iShares Core U.S. Aggregate Bond ETF (AGG) and iShares Global Corp Bond UCITS ETF (CRPS.L) in your portfolio due to increased view that major central banks will start to cut interest rates in 2024. You have been told by your department that short selling is not allowed in your investment strategy.

REPORT STRUCTURE:

ASSESSMENT CRITERIA:

(a) Rationale of the portfolio strategy (e.g., justification and clear explanation of the investment strategy);

(b) Backtesting (e.g., addressing the tasks with relevant knowledge and insight; ability to collect real-world data and to implement analysis in Excel; quality of the interpretation of results);

(c) Sources and evidence (e.g., proper citation and referencing); and

(d) Written communication (e.g., organisation and presentation; ability to convey the analysis in a concise and well-presented report).

WRITING YOUR ASSIGMENT:

o This assignment can be completed individually or in a group of two. Larger groups are not permitted.

o If you work in a group of two: ONE student must submit a copy of each file (Word and Excel). The other group member must submit only a simple cover page document, stating both Student ID numbers.

o You must ensure careful citation of all journal articles and electronic sources of information and include a list of references. Please ensure that the references are cited and listed in the Harvard referencing style. See: https://www.bangor.ac.uk/library/help/documents/harvardreferencingguide.pdf

o You must use a minimum of five academic sources in your assignment.

o You must state the Word Count on the cover page of your work. The word limit of the written assignment is 1000 words +/− 10%.

o Please use either font Arial or Times New Roman with 11- or 12-point size, double (2.0) spacing.

o The work must have a cover page (your own design).

o Your Student ID number should appear as a header or a footer on each page.

o All pages should be numbered. 

ACADEMIC MISCONDUCT:

You are reminded not to copy material from any sources without properly referencing it, as this constitutes plagiarism: cases of plagiarism will be referred to the Business School Academic Integrity Officer and will be subject to a deduction of marks, which can result in an overall mark of 0%.

The copying of material extends to the use of essay mills and AI technology such as ChatGPT. You are reminded that the use of such services to generate work in substitute of your own original contributions contravenes Bangor’s Academic Integrity policy. Any detected attempt to use such tools will also result in referral to the Business School Academic Integrity Officer.

DEADLINE:

FURTHER INFORMATION: