Report on investment strategy for a small fund.

Description

The assignment is an individual report on investment strategy for a small fund. You are the portfolio manager of a UK-based fund and have to build a small portfolio. The fund should be a balanced portfolio of equities and bonds and should include equities from 4 companies and 4 bonds (government or corporate debt securities). You are borrowing £1,000,000 for four weeks at the rate LIBOR + 2.5% (annual quote). Your objective as portfolio manager is to produce a fund that should deliver an annualised return of 15%. The holding period is 4 weeks (beginning and end of investment to be decided by the fund manager). Trading is allowed during the holding period (transaction costs are assumed to be zero). No short-selling nor use of other funds allowed.