Please help with this asset management portfolio building and analysis question.

Asset Management Portfolio Building and Analysis As an analyst working for an assetggnsultiug m. you have been asked you devise an investment strategy for a new client The goal is for you to propose a portfolio offunds that best suit the clients objective and constraints. You have fewweeks to do your research and prepare this fund of funds. Your portfolio should contain a minimum of four core funds. A list offunds is provided to you as a base. You should be using these funds if they are suitable for your client portfolio. You may also choose to use alternative fund if you believe they are more suitable. You must elm submit a comprehensive writhn report to the client (the 'Report') and sub rnll your underlying work to your man agar (the \"Report W or Fries\"). For the client, you need to explain the portfolio composition. explain the funds selected, the historical performance ofthe funds. the level of risk. You must present historical performance and volatility of the portfolio (W and comment on the expected performance and risk ofthe portfolio. You must also to explain why the fund and the portfolio suit your client. For your manager. you will have to explain and justify yourasset allocation. You must also prepare a neatmggghmexplaining and showing all your calculations and the data and method that you have used to estimate the portfolio risk, performance and its optimization. This is an outline of the essential tasks that you must perform for this project: - For each fund included in your portfolio. prepare a summary explaining the fund investment styte and fund manager track record. Calculate and comment on fund historical performance and risk level using historical data {whenever possible estimate the 1 month. 3 months. 6 months. 1 year, 2 years and 3 years return perfonrranoes). Calculate historical risk and return using the measures that you believe would be appmpnate (benchmark, 31911an. . Use the Markowitz approach or another riskr'retum optimization method to optimize your portfolio allocation. - Estimate your portfolio historical performance and risk level using histoncal data (back- testing) (whenever possible estimate the 1 month, 3 months, 6 months. 1 year. 2yeam and 3 years return performances). Calculate portfolio volatility and composite performance measures and other measures that you believe would be appropriate (attribution). - Explain the portfolio and justify youriunds' seledicn and allocation to your client and your manager. Present and comment on the future performance ofthe portfolio. Your report format should follow the GIPS Standards guidelines. You will have to fetch market data and other bench mark data from Ensign or open source such as Yahoo Finance. You are also advised to conduct further fund research by visiting fund managers visit and seeking the disclosed information on the funds you wish to include in your portfolio. MAJOR PROJ EG'T INVESTOR PROFILE - MR Arm You will nd below a description your client as well as the listofthe managers and funds that are at your disposal to build your client's portfolio. You have been assigned the following Client MLAr'm. 55 years old. British and Australian Citizen, 33:: (Civil Engineering]. MSc (Naval Engineerinl. MBA (Finance). Project Director at BHP Billiton. MLAr'm has personal wealth amounting to more than 10 million Australian dollars mainly invested into the Australian properties market. He has a Wlolerance and a good understanding ofnancial markets. He is seeldng an investment strategy which primary emphasis is on achieving above-average portfolio appreciation overtime. His investment time horizon is 5 to 7 years. He is willing to assume a signicant level of portfolio volatility and risk of principal loss. MLAr'm has some personal belief in value investment. Nevertheless. he is very conscious of the cost of active management and considers indexed funds an interesting option. However. ultimately, he expects you to select the most promising Jnds and build a successful strategy. MLAr'm is seeking to invest 2.5 million Australian Dollars. rmfmllst not (lat; Fund retail; 0an 1 M moan nun-plan wrun- MmMmM-MW Ind-m wnmscuenmmnm.mmmnm Arstr'll'rlaI mm swim-aw mm wmrmrqmwm mm SUJWWTRW \"minim we." \"magma-rm mm Wiimimlllm I'm WJWHWMRM mm mm mmmmm mm WWW" Illdlllll. mmmlm mmmlm will" Hummus wru- mmmm W momma \"mlwm mm mouse-mum sown-Irv 05K mmww m Illilllll SOP-ll\" NAM\"! mmmmmmruummmmmmm mmuummmwmwmmum mhmwmdm