SUMMATIVE ASSIGNMENT
During Epiphany Term you are required to construct a portfolio of assets and
manage and monitor its performance throughout the term using the StockTrak
Portfolio Simulation software (details of the way in which the programme operates
are provided). The investment period runs from Monday 13th January until Friday 20th
March 2020.
An initial fund of $1,000,000 is available to purchase assets (equities, bonds, mutual
funds, and ETFs). A $10 commission is charged for each trade so more trading will
entail greater transaction costs. The total number of transactions is limited to 200 for
the simulation period.
Please note that you are required to register an individual account on StockTrak for
the SIA Summative Assessment 2019-20.
The assignment will be assessed by means of an individual written report that
critically discusses the following:
 the nature of the prevailing economic and financial environment that shapes
your investment decision-making and the potential impact of these on the
performance of the portfolio.
 the investment philosophy that underpins the construction of the portfolio and
the investment strategy adopted (philosophy and strategy should be carefully
distinguished from one another).
 the rationale for the allocation of assets between broad sectors and the
principles that have guided the choice of individual securities (the application
of technical and/or fundamental analysis).
 the performance of the portfolio in relation to a chosen benchmark (and a
justification for the choice of benchmark).
 the risk/return characteristics of the portfolio using appropriate portfolio
performance measures (consideration should be given to the performance of
your portfolio in terms of security selection, market timing, and diversification).
 how you might alter your investment decision-making if you were asked to
construct a new portfolio at the end of the simulation period.
The discussion should be underpinned by appropriate academic literature
throughout.
Overall word limit: 2500