Assignment Brief Precious Asset Management (PAM), an Australian investment house that manages two life-style funds: Defensive (70:30 Bonds to Equities), and a Growth Fund (30:70 Bonds to Equities). PAM LifeStyle fund consists of Australian Index ETFs, an Emerging market Active Equity fund, and home-grown active funds. PAM has in- house fund management capabilities and wants to use them in their LifeStyle offerings. PAM believes that each LifeStyle funds must start with a base of Vanguard Australian equities and Bond ETFs - VAS and VAF. Each LifeStyle fund will then add two PAM active funds - one Australian equity fund and one US bond fund. Finally, one Emerging market active equity mutual fund will be added. PAM wants to create two variations within each life-style fund as follows: Life Style Investment Australian Equities Australian Emerging Mkt US Active Bond funds Fund Bias Bonds Active Equity mutual fund Defensive 1 70:30 ASX 300 ETF (VAS) Aus Bond ETF Eastern European PAM US Short Term Inv + PAM Small Cap (VAF) Fund Grade Corporate Bond Growth Active Defensive 2 70:30 ASX 300 ETF (VAS) Aus Bond ETF Latin American PAM US Short Term + PAM Small Cap (VAF) Fund High Yield Active Value Growth 1 30:70 ASX 300 ETF (VAS) Aus Bond ETF African Fund PAM US Long Term Inv. + PAM Large Cap (VAF) Grade Corporate Bond Growth Active Growth 2 30:70 ASX 300 ETF (VAS) Aus Bond ETF Middle East Fund PAM US Long Term High + PAM Large Cap (VAF) Yield Bond Active Value Teams will choose the LifeStyle fund based on the last digit of the sum of the student ids added together, based on the table below: LifeStyle Fund Investment Obj Last digit of Sum Defensive 1 Outperform the 70:30 (VAF:VAS) by 0.25% per annum after costs. Fund 1 and 9Teams will choose the LifeStyle fund based on the last digit of the sum of the student ids added together, based on the table below: LifeStyle Fund Investment Obj Last digit of Sum Defensive 1 Outperform the 70:30 (VAR:VAS) by 0.25% per annum after costs. Fund 1 and 9 should have a higher Sharpe ratio than the benchmark Defensive 2 Outperform the 70:30 (VAF:VAS) by 0.25% per annum after costs. Fund 2, 5 and 7 should have a higher Information ratio against the benchmark with Tracking Error of less than 5% per annum Growth 1 Outperform the 30:70 (VAF:VAS) by 0.5% per annum after costs. Fund 0 and 4 should have a higher Sharpe ratio than the benchmark Growth 2 Outperform the 30:70 (VAR:VAS) by 0.5% per annum after costs. Fund 3, 6 and 8 should have a higher Information ratio against the benchmark with Tracking Error between 5% and 10% per annum For example, if a team with three team members have the following details, the LifeStyle fund that they must create will be the PAM LifeStyle Growth 2 Fund. Member Student Id 1 1700925 1624100 WIN 1528741 Total 4,853,766