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Portfolio Tracking Assignment

Portfolio Tracking Assignment

Each student is required to create a portfolio comprised of four to ten mutual funds and/or exchange traded funds (ETFs) which have been traded on or before January 1, 2015 (you can buy up to two funds per asset class—DO NOT PICK STOCKS). The portfolio is a buy and hold portfolio and thus is passively managed.  You are to assume that you have been given $1,000,000 to manage for a client. You are to determine the risk profile of the client (conservative, moderate, aggressive, etc) and select your funds and target allocation accordingly.

Allocations must be within the allocation bands listed below, and you are to determine the target allocation based upon the risk profile of your client and invest according to your selected target allocation.

Asset Class

Target Allocation

Minimum

Maximum

U.S. Large Cap Stocks

20%

60%

U.S. Small Cap Stocks

5%

30%

International  Stocks

5%

40%

Fixed Income (Bonds)

5%

50%

Real Estate

0%

20%

Commodities

0%

20%

You will be required to track the performance of your portfolio on a daily basis.

  1. The risk profile of the client, and explain why the asset allocation you selected is appropriate for this risk profile.
  2. A table listing the following:
    1. fund names,
    2. fund ticker symbols,
    3. the fund’s asset class (from the list above),
    4. the target allocation you selected,
    5. the dollar amount invested in each fund (to the nearest penny), and
    6. the number of shares you purchased (rounded to three decimal places).
      1. ETFs are purchased by the share, so you should not have decimals for # of shares.
      2. Mutual Funds are purchased using a fixed dollar amount, so you would have fractional shares which must be taken out to three decimal places.
  3. The Yahoo profile and performance pages for each of the funds.
    1. Sample profile page: https://finance.yahoo.com/quote/VFINX/profile?p=VFINX
    2. Sample performance page: https://finance.yahoo.com/quote/VFINX/performance?p=VFINX

The neatness and organization of the above information will factor into your grade for this assignment.

Mutual Fund/ETF screening sites:

http://online.wsj.com/public/quotes/mutualfund_screener.html

http://screen.morningstar.com/FundSelectorAOL.html

https://screener.finance.yahoo.com/funds.html