Portfolio management

The purpose of this report is to produce an endowment management plan, providing substantial cash flows for current bursary and scholarship payments. Additionally, it aims to address the problem of rising needs for financing in the future, due to the growing number of students. Specifically, great attention is paid to the development of an investment policy statement (IPS), and asset allocation. All the recommendations are underpinned by the economic, industry and individual share analysis. The report structure is presented as follows: the first part covers the questions of the IPS development, including a spending policy; the second part aims at capital market expectations analysis; the third part focuses on asset allocation; finally, some conclusions are drawn.

1. INTRODUCTION 2
2. INVESTMENT POLICY STATEMENT 2
3. CAPITAL MARKET EXPECTATIONS 4
3.1 Index fluctuation and return analysis 4
3.2 Real Gross Domestic Product (RGDP) 5
3.3 Inflation and unemployment 6
3.4 Gross Government Debt (%GDP) 6
3.5 Currency risk 7
4. ASSET ALLOCATION 8
4.1 Industry analysis 8
4.2 Correlation matrix 9
4.3 Optimization 10
5. CONCLUSION 11
REFERENCE LIST 13
APPENDIX 14