Portfolio Tracking Assignment
Portfolio Tracking Assignment
Each student is required to create a portfolio
comprised of four to ten mutual funds and/or exchange traded
funds (ETFs) which have been traded on or before January 1,
2015 (you can buy up to two funds per asset className—
DO NOT PICK STOCKS). The portfolio is a buy
and hold portfolio and thus is passively managed. You
are to assume that you have been given $1,000,000 to manage
for a client. You are to determine the risk profile of the
client (conservative, moderate, aggressive, etc) and select
your funds and target allocation accordingly.
Allocations must be within the allocation bands listed below, and you are to determine the target allocation based upon the risk profile of your client and invest according to your selected target allocation.
|
Asset className |
Target Allocation |
Minimum |
Maximum |
|
U.S. Large Cap Stocks |
20% |
60% | |
|
U.S. Small Cap Stocks |
5% |
30% | |
|
International Stocks |
5% |
40% | |
|
Fixed Income (Bonds) |
5% |
50% | |
|
Real Estate |
0% |
20% | |
|
Commodities |
0% |
20% |
You will be required to track the performance of your portfolio on a daily basis.
- The risk profile of the client,{" "} and {" "} explain why the asset allocation you selected is appropriate for this risk profile.
- A table listing the following:
- fund names,
- fund ticker symbols,
- the fund’s asset className (from the list above),
- the target allocation you selected,
- the dollar amount invested in each fund ( to the nearest penny), and
- the number of shares you purchased ( rounded to three decimal places).
- ETFs are purchased by the share, so you should not have decimals for # of shares.
- Mutual Funds are purchased using a fixed dollar amount, so you would have fractional shares which must be taken out to three decimal places.
- The Yahoo profile and performance pages for each of the funds.
- Sample profile page: https://finance.yahoo.com/quote/VFINX/profile?p=VFINX
- Sample performance page: https://finance.yahoo.com/quote/VFINX/performance?p=VFINX
The neatness and organization of the above information will factor into your grade for this assignment.
Mutual Fund/ETF screening sites:
http://online.wsj.com/public/quotes/mutualfund_screener.html
http://screen.morningstar.com/FundSelectorAOL.html
https://screener.finance.yahoo.com/funds.html
