Impact Analysis of Proposed Investment Changes for XX121

CLIENT BRIEF

Your client is a UK private company (XX121), which specialises in providing risk management software for clients in the financial sector. The company is owned and managed by its Directors1, with offices in London and New York. The company has been trading for about 20 years, and it has amassed a sizeable pension fund for its employees. In addition, the Directors have invested £12 million of their own money directly in UK equities, on a ‘buy-and-hold’ basis.

Investors to manage their funds for them.

INDIVIDUAL REPORT

You should prepare an individual report, which analyses the impact of four proposed changes in your client's investment objectives. You should include your Bloomberg and Eikon Certification, and News Reports, as Appendices. 

You will be informed of four proposed changes to your client's investment objectives during the seminars. You will assess the impact of these proposed changes on a sub-portfolio which you will manage.  In the first seminar, you will be assigned a business sector for this sub-portfolio. 

Over the term, you should keep notes of the impact of News on your business sector, and report on this in your Appendices.

You are responsible for the Directors’ UK equity fund. You are assigned a business sector, and asked to recommend a single stock to sell, and single stock to buy, for that fund. In the report, you will report on the performance of the UK equity fund, compared with the original.   

Investment Objective 2: Employees’ Pension Fund 

The company’s employee pension fund is currently investing purely in the UK banking sector by tracking the FTSE Banking Sector Index (Bloomberg ID: F3Bank Index). To diversify the risk of the fund and of the income stream for their employees, the Director has decided that they will switch to tracking the FTSE 100 index.

Marking Scheme 

For the generic marking criteria at postgraduate level (Distinction, Merit and Pass) see DMU (2019c). 

Style – Presentation (10%) 

·The layout should be professional, with an executive summary / abstract (up to 5%) 

·The report should be free from spelling, punctuation and grammatical errors 

·All external quotations should be referenced appropriately 

·All citations should be in accordance with the Harvard system of referencing and should be presented alphabetically (DMU, 2019d) 

Higher marks will be awarded for appropriate use of tables, graphs and Appendices

Assignment Submission

Please include your student numbers (not names) on the cover page. There is no need to submit hard copies. Assignments must be typewritten. You are required to submit in electronic format for both assignments on the relevant Turnitin link using Blackboard be no later than 2359 on the hand-in date. This is used to screen for plagiarism. ALWAYS obtain a receipt for work handed in and keep a copy of the work in case of mishaps.

Late Submission and Reassessment Requirements

Please refer to the University Regulations for Postgraduate study (DMU, 2019c) regarding penalties for late submission and resassessment regulations. Permission for an extension or deferral can be requested from the Programme Leader. Supporting evidence will normally be required.