Project Outline:

For this project, you must put yourself in the shoes of a fund manager who must decide how to invest 1,000,000 for one of the following clients (you pick the client):

25-year-old professional sportsperson

45-year-old business owner

Or 65-year-old person retiring shortly

The first decision you must make is how much to invest in bonds, equities or hold as cash. The second decision for the project is, of the proportion you are investing in bonds, which bonds those should be.

You must select 3 bonds (either government or corporate) in which to invest. You must undertake a thorough analysis of the bonds you wish to invest in and write up a 3000- to 5000-word report for your chosen client.

Project Details:

Your client would like to invest 1,000,000 in bonds (either government or company), equities and/or cash.

The first page of your report should detail what percentage of the portfolio should be held in each of bonds, equities and/or cash and should include a paragraph summarizing your rationale for your client, e.g., I suggest you take a low/medium/high risk strategy because .

Your portfolio must contain 3 bonds. The remainder of your report needs to detail why you have chosen the bonds you have. Do not write about equities/cash in the main body of your report.

You will decide which client you will cater for. After that decision, you should choose your bonds accordingly. You should think about their investment horizon (e.g., short-term or long-term) and risk appetite (e.g., risk-averse or risk-loving). Feel free to generate a short narrative around your client, e.g., perhaps the business person has a young family. How has this influenced your choice of assets?

Why did you choose the particular assets in the portfolio? These must be proper economic reasons based on what you have learnt in the course and general economic prospects. Because many investors choose these assets is not an acceptable reason!

Your report should present a comprehensive analysis of the government/company issuing the bond. For example, include

o their history of bond issuance,

o your expectations of future events which may impact on government/company ability to service their bonds,

o their ratings history,

o their history of bond performance,

o why you have chosen that specific bond over other bonds the issuer has presented (e.g., coupon rates, time to maturity, yield etc)

You should also detail

o your expectations of future interest rates and how these will affect bond performance,

o exchange rates, sector information etc ,

o and importantly, you should demonstrate a grasp of the concepts covered in class (for example, yield curves, duration, convexity etc)

You may wish to detail how the assets perform over the period of writing up the report give details: prices, yields, volatility etc By how much has the portfolio risen or fallen in value so far?

If your client were to continue to hold the portfolio for the next year/3 years/10 years, how do you think it would perform?

You should include in your report any other information that you think is relevant to the performance of the portfolio and any factors that you think might have affected the assets in the portfolio.

It is extremely important that you reference any and all sources of information within your final report.

In summary, the report should give a comprehensive story as to why you chose each of the bonds for your client.

If you are calculating measures such as duration/convexity, you should include your calculations in an appendix (these calculations are not going to count towards the 3000- to 5000-word limitation) but interpret these measures within the report.

When it comes to deciding how much of each bond you will buy for the portfolio, pick a date in October 2022 and use prices on that date for each of your bonds. Recall a bid price of 101.80 means a price of 1018.00.

If you decide to invest in foreign bonds or assets traded on foreign exchanges, dont forget to check the currency denomination of the asset.

Please include a summary table at the start of your report naming each of the bonds you have chosen, the percentage of the 1,000,000 which will be invested in each, and the currency of the bonds

Project Outline:

For this project, you must put yourself in the shoes of a fund manager who must decide how to invest 1,000,000 for one of the following clients (you pick the client):

25-year-old professional sportsperson

45-year-old business owner

Or 65-year-old person retiring shortly

The first decision you must make is how much to invest in bonds, equities or hold as cash. The second decision for the project is, of the proportion you are investing in bonds, which bonds those should be.

You must select 3 bonds (either government or corporate) in which to invest. You must undertake a thorough analysis of the bonds you wish to invest in and write up a 3000- to 5000-word report for your chosen client.

Project Details:

Your client would like to invest 1,000,000 in bonds (either government or company), equities and/or cash.

The first page of your report should detail what percentage of the portfolio should be held in each of bonds, equities and/or cash and should include a paragraph summarizing your rationale for your client, e.g., I suggest you take a low/medium/high risk strategy because .

Your portfolio must contain 3 bonds. The remainder of your report needs to detail why you have chosen the bonds you have. Do not write about equities/cash in the main body of your report.

You will decide which client you will cater for. After that decision, you should choose your bonds accordingly. You should think about their investment horizon (e.g., short-term or long-term) and risk appetite (e.g., risk-averse or risk-loving). Feel free to generate a short narrative around your client, e.g., perhaps the business person has a young family. How has this influenced your choice of assets?

Why did you choose the particular assets in the portfolio? These must be proper economic reasons based on what you have learnt in the course and general economic prospects. Because many investors choose these assets is not an acceptable reason!

Your report should present a comprehensive analysis of the government/company issuing the bond. For example, include

o their history of bond issuance,

o your expectations of future events which may impact on government/company ability to service their bonds,

o their ratings history,

o their history of bond performance,

o why you have chosen that specific bond over other bonds the issuer has presented (e.g., coupon rates, time to maturity, yield etc)

You should also detail

o your expectations of future interest rates and how these will affect bond performance,

o exchange rates, sector information etc ,

o and importantly, you should demonstrate a grasp of the concepts covered in class (for example, yield curves, duration, convexity etc)

You may wish to detail how the assets perform over the period of writing up the report give details: prices, yields, volatility etc By how much has the portfolio risen or fallen in value so far?

If your client were to continue to hold the portfolio for the next year/3 years/10 years, how do you think it would perform?

You should include in your report any other information that you think is relevant to the performance of the portfolio and any factors that you think might have affected the assets in the portfolio.

It is extremely important that you reference any and all sources of information within your final report.

In summary, the report should give a comprehensive story as to why you chose each of the bonds for your client.

If you are calculating measures such as duration/convexity, you should include your calculations in an appendix (these calculations are not going to count towards the 3000- to 5000-word limitation) but interpret these measures within the report.

When it comes to deciding how much of each bond you will buy for the portfolio, pick a date in October 2022 and use prices on that date for each of your bonds. Recall a bid price of 101.80 means a price of 1018.00.

If you decide to invest in foreign bonds or assets traded on foreign exchanges, dont forget to check the currency denomination of the asset.

Please include a summary table at the start of your report naming each of the bonds you have chosen, the percentage of the 1,000,000 which will be invested in each, and the currency of the bonds