Report on Fund Performance managed for university for the period

Report on Fund Performance managed for university for the period 01-03-2020 to 31-
03-2020
Executive Summary
The endowment fund of university comprises of 50 Million USD and the entire amount has
been allocate in the portfolio to make it comparable with the benchmark NASDAQ
composite. Further, 100% allocation has been made in equity as Nasdaq is an equity
composite. Further, all large caps have been selected for investment considering the global
turmoil on account of Covid-19. The initial investment structure comprised the following.
Company Name AAPL Microsoft 3M Walmart Inc. Facebook Pepsi co
Funds Allocation 5,00,00,000 5,00,00,000 5,00,00,000 20,00,00,000 5,00,00,000 10,00,00,000
Returns`
Further, at the end of the period of analysis, the return of the portfolio was 6.87% as
compared to negative return of the index of (-) 14%.
Active management
The portfolio outperformed the benchmark on account of active management, timely
decisions and economic perspective. If one consider the return of individual stocks over the
period of 1 months, it represents a negative return. Thus, a steady portfolio would have
eroded the capital. Accordingly, the portfolio is churned in this volatile market to reap out the
benefits of active return.
Initial Strategy
Also, the initial asset allocation did not survive the current volatility of the market and
accordingly the positions needed to be squared off on different dates to minimise the losses.
The squaring off was done mainly on days when lock down was declared in European
countries so as to prevent further downfall of stocks.
Major Contributor
The sector that contributed most to the return was Manufacturing and in specific FMCG
sector as due to lockdown globally and in many states of US, demand for FMCG and daily
consumption goods soared which resulted in rise in the prices of these stocks after a heavy
fall under initial days. Further, the rise has also been on account of bailout package by
President Trump on 25th March, 2020.
The individual position of long on Walmart had the most significant impact on the returns to
the portfolio.
Market Overview
The investment period has been on of the most volatile period in the investment history
wherein major large capital company have erorded their wealth by almost 25% and the index
also eroded by 14% in a month. The market was grappled with fear of Covid-19 with the
figures of death and victims rising at an exponential rate. Besides, during the concerned
period USA became the new hotspot of virus with highest number of infections and death