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FINA312 / 517 - 15B FUND MANAGEMENT SIMULATION PROJECT INSTRUCTION FOR REPORT 01 The Fund Management Simulation Project (FMSP) for Fina312/517 is...

Hello, I need help with a fund management simulation project. I will upload the file including the requirements for the project. Most importantly, the name of the project is "The Warehouse Group." Please have a look. Thanks a lot. 

FINA312 / 517 – 15B FUND MANAGEMENT SIMULATION PROJECT INSTRUCTION FOR REPORT 01 The Fund Management Simulation Project (FMSP) for Fina312/517 is designed to stimulate the analytical skills of the students in the important aspects of fund management. It comprises of a series of four (04) reports in which specific instruction will be given prior to each week’s report for the students to do on their fund portfolios. The financial markets are dynamic and ever changing. Fund managers constantly need to make informed decisions in managing the funds and these are important decisions as they will definitely have an impact on the performance of the funds. To allow the students in experiencing the real situation in the real world, instructions will be given only few days in advance, and students must make decisions based on the instructions, the market conditions at that particular time, and their own projections of the market and the stocks movement. In the first report, each group is expected to set up two (2) different funds as below:- 1. A passive fund of $5,000,000; and 2. An active fund of $10,000,000. These instructions are as simple as it can be because students will have the freedom to structure the funds based on that simple instructions. For Report 01, students are expected to:- a. Give name of the funds that reflect their objectives; b. Set benchmark of the funds; c. Set initial asset allocations of the funds; d. Indicate risk level of the funds; e. Identify targeted investors of the funds; f. Set objectives of the funds; g. Identify constraint of the funds; h. Set initial sectoral allocation of the funds; i. Specify stock selection strategy of the funds; j. Indicate initial stock filtering of the funds; and k. Identify trading technical tools to be used by the funds (if any). Kindly note that as the class progress, there will be instructions what the students are supposed to do in the next report. Students will NOT be marked or judged based on how much profit or loss they make. In fact, students will be given marks based on:- 1. How well the students follow the instructions given; and 2. How well they explain their reasoning and rationale in their investment decisions. Please include the filled table of below in your Report 01. Replace the examples (in red) with your own descriptions. Feel free to be creative. 1
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Item Passive Fund Active Fund 01 Name WMS Index Fund WMS Growth Fund 02 Benchmark Maximum of 5% tracking error on performance of NZX50 At least 20% above the performance of NZX50 03 Initial Asset Allocation 90% in component stocks of NZX50 and 10% cash 70% in stocks, 20% in bonds, and 10% in cash 04 Risk Level Low High 05 Targeted Investors Low risk investors, retirees and the like; and Institutional investors who wants to earn market return Young investors with high risk appetite and long-term time horizon; and Institutional investors who wants higher return than corporate bonds yield 06 Objectives of Funds To follow the movement of NZX50 and thus provide investors with the actual return of investing in NZ stock market To outperform the return of NZX50 by investing in various instruments, employing trading activities, and constant monitoring of the market conditions 07 Constraints of Funds At any time, the fund must:- have no exposure in derivatives; be limited to NZ and Australian stocks only; be limited to a maximum of 20% of size of fund in fixed income instruments; and have minimum 5% cash holding At any time, the fund must:- be limited to a minimum of 30% of size of fund in equities; be limited to a maximum of 60% of size of fund in fixed income instruments; be limited to a maximum exposure in a single stock of 20% of size of fund; and have minimum 5% cash holding 08 Initial Sectoral allocation As per NZX50 09 Stock Selection Strategy Sampling (select stocks in NZX50 which has high weightage and impact on the movement of NZX50) Top Bottom Approach 1. Economy 2. Industry 3. Stocks 10 Initial Stock At least 2% weightage on NZX50; and Maximum historical PE Ratio of 50 times; 2
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The project X.doc

Fund Management Simulation Project
Student’s Name
Institution 1 The name of the project that I am supposed to do is called The Warehouse Group, herein referred
to as WHG. 01
02
03
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