Investment Management: Investment Approaches And Strategies

Order 100% Plagiarism free paper

1)Please be kind to read below my personal requirement for the essay :
– This essay must be NO less than 1925 words
-Please write the essay in a very simple and direct way , so when I will receive it I can understand its content , and if needed I can do some edit. If the assignment is too technical or complex, I cannot understand it and I cannot edit it, as I am not an expert in the field.
– Please design the portfolio in a very basic and simple way so I can understand it , but please do not just write numbers and symbol, but be kind to argument the portfolio and calculation and explain them, so I can understand what you wrote into the portfolio and what you meant by that.
-Please make the assignment also argumentative , do not just write symbols or calculation, try also to explain in simple words the meaning of ( SRI ) as well as Passive and Active Investment strategy, before building portfolio and calculation explain in simple words what they are and please do not use an high technical language otherwise that can make someone suspicious.
-Please provide my assessment in WORD document and NOT IN PDF.
-Please use at least 3 reliable references which I can put into the essay and for which I will not be marked down. You can use also a company website, or a reliable and famous financial website as reference, that will make my life easier when I ll need to edit it. ( If you’ll put academic references from book, and you do not write then in the way my College wants , then I ll have to edit it, but it will be hard to edit it as I ll probably will not have all information to reference the way they want), so please use company website or financial official website, so I can easily access to them and check them.
2) Now that you have my personal requirements for the essay , I ll write you the essay question :
– In recent times there has been some controversy regarding the returns from passive investments strategies , compared with active investment strategies. Similarly there has been an uptake in investing in Social Responsible Investments ( SRI) ,and faith based or environmentally social corporate governance ( ESG) , or Corporate Social Responsible (CSR) and their constituent stock as opposed to all stocks that can include ( sin ) stocks.There has also been some research suggesting that ( SRI) stocks can outperform benchmark index.
-Assume that you have just began working for an ( SRI) Fund , and your Chief Investment Officer (CIO) wants you to spend your first week of employment investigating the returns over at least the last 7 years for a Passive ( SRI) and also for an active ( 10 SRI Stocks and 10 Non SRI Stocks in a portfolio) investment strategies. Assume the annual fees for the passive strategies are 0,25% and fees costs for the active strategies are 0,04% for each buy/sell, round up transactions then do the following steps:
– Design a Passive Strategy , for example and index of the risk free rate and a SRI Stock Market Trading Index on the country of your choice, from at least 30 of Semtember 2010 to to Semtember 2017.Calculate your passive returns each calendar year over the period 30 September 2010 to 30 September 2017.
– Design a diversified portfolio of 20 listed Stocks ( 10 SRI and 10 NON SRI ) in the same country/exchange as the 1 above, and equally-weighted at the beginning ( Example in 30 September 2010) that you will select as of 30 September 2010 and actively trade as of the period 1 October 2010 to 30 September 2017. You can trade any five stocks every quarter, and 20 stocks in a year. Calculate your active returns each year over the period 1 October 2010 to 30 September .
-In your new role after just completing your MBA you will be managing a small active fund , ( FOr example 50 Million $) with the CIO Mentoring you , the CIO realises that the last 7 years period is all past data and you could easily game the data to make active portfolio have a greater return than passive strategy ( Example the risk free rate and SRI index from a country) . Therefore the CIO wants to clearly explain to them why you selected the 10 SRI and 10 non SRI you do. Explain also what are the reason and theory behind what you do, ( For example large, medium , small stocks, value or growth stocks) as they will expect you to carry out similar strategies as manager.
-Explain in an in-depth critical and reflective way the strategies your active portfolio strategy adheres to , and the financial theories your strategies are based on.
-Critically evaluate and compare your results from your active and passive portfolio returns.
-Discuss your analysis based on theory , your results and other empirical research the statements in the case study outline ( Example why an SRI passive portfolio strategy *Example the risk free rate and SRI index * would have would have higher/lower return than active portfolio strategy , based 50% SRI and 50% NON SRI stocks, make any assumption you may use in your case study very clear.