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Discuss your investment philosophy. Demonstrate how your asset allocation decisions match with your investor profiling.

Assignment Brief –

For Qatar campus students, your suggested benchmark is a portfolio with 100% invested in Qatar Exchange
Index (Bloomberg Ticker: DSM Index). However, you are allowed to select benchmark(s) that you believe
is(are) suitable for evaluation purpose. Likewise, students are allowed to invest in exchange(s) from anywhere
in the world. This means students can choose to invest in any market and if a student decides to invest abroad,
then the beginning value of the investment can be 1000,000 in local currency of the abroad country. For
example, if a student from Qatar makes majority investment in the UK stock market, then the start value of the
investment can be £1000,000.


You must value your portfolio and take into account the transaction cost which is 1% of transaction amount
per trade (same for passive portfolio).
You are encouraged to use Bloomberg Financial Database but you can also use publicly available financial
database sources such as Yahoo finance and Google finance. Similarly, you can use Bloomberg portfolio
analysis tools or make analysis through calculations in MS Excel.
In your final investment report, you are required to address the following:

  1. Discuss your investment philosophy. Demonstrate how your asset allocation decisions match with your investor profiling. Forecast the market and discuss what assumptions you made in your market
    forecasting analysis. Discuss how it differs from your investment five years ago.
    (10 marks, 600 words)
  2. Reflect upon your rebalancing strategies. In this section, you should highlight why you bought, held or
    sold your shares and whether the rebalancing changed the nature of your portfolio. Your rebalancing
    strategies should be supported by relevant investment theories and assets pricing models.
    Additionally, you are required to identify relevant behavioural biases and explain your own
    irrationalities observed during construction and management of the equity investment portfolio. This
    should be strongly underpinned by academic literature.
    (45 marks, 1,200 Words)
  3. Evaluate your portfolio’s risk-adjusted absolute and relative performance. You should also explain the
    performance difference between your portfolio and the given benchmark(s) using techniques such as
    attribution analysis and tracking error. Additionally, you should link and evaluate your strategies,
    including active and passive, results and risk taking decisions with your investment philosophy. Your
    discussion should be supported by relevant theories and academic literature.
    (45 marks, 1,200 Words)

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