Portfolio Analysis Project - Finance, Humber College

This portfolio analysis project, conducted on February 14, 2020, for a finance course, examines the investment strategy of an endowment fund. The project details the fund's objectives, including sector diversification across technology, services, and consumer goods, while aiming for low risk and high returns. The portfolio prioritizes long-term investments with high tolerance for market fluctuations. It analyzes income versus growth, liquidity, and tax considerations, focusing on companies with strong branding. The strategic asset allocation is primarily equity-based, with a cash equity of 84.4% and long equity of 15.6%. The project compares sector weights to the S&P/TSX, discusses sector weighting decisions, and outlines economic and capital market expectations, including both qualitative and quantitative financial analysis.

Portfolio Analysis 1
Date : 14 / 02 / 2020
Course Id :
Student Name:
Student Number:
Assessment Number: Portfolio Analysis

Portfolio Analysis 2
The portfolio for the endowment fund is defined as follows:-
(Humber Trading, 2020)
Investment objectives and constraints – The idea behind this portfolio has to have a mixed
variety of the industry analysis which may be in terms with the sector bifurcation. The company
deals with various sector which may include Technology, services, consumer goods, oil and gas
production, as well as the factor industry.
Risk objectives/tolerance
The fund analysis is based on the factor that the risk is minimum though being an equity
investments and therefore, the analysis is reflected on the matter that the money is divided wisely
and the bifurcation so that the fund leads to low level of risk and high return value. On the more,
tolerance level is high so that sudden change in the market charges will lead to minimum losses.
Return objective

Portfolio Analysis 3
The company selected will be in such manner that it will assure that the company provides an
great level of sustainability and a good reputation, it will further, assure that the portfolio builds
with a nice reputation and brand building. Further, the portfolio is selected of those where
fluctuations are minimum.
Income vs. growth
In connection with the each single companies it is evident that the income versus growth, it is
evident that the money value of the all five stocks has gradually on an average basis have
increased by about 1 percent to around 5 percent. Further, the analysis is about the growth the
company has assured that the level of the growth has been increased in terms with the PE Ratio
as well as the volume ratio.
Liquidity
The liquidity in terms of selling the whole products is not very high at this moment as it is
evident that the liquidity will surely assure as the investment is made on the basis that the
portfolio will surely lead to provide an better and stable returns only if the same leads to provide
an objectivity based on the long term analysis and therefore, liquidity is little on a lesser side of
the bargain.
Time horizon
The portfolio selection clearly explains that the data study of the assets as well as the money
allotment on the share is done keeping in mind a larger based time period which is having a
much long time horizon rather than short.
Tax considerations

Portfolio Analysis 4
The tax considerations has been an essential factor while thinking all the elements which may
include the element of the tax saving. It is evident that the benefit has been reaped very well as
the income as well as the returns are tax free.
Unique circumstances
The company portfolio which has been selected are more or large companies which are known
for their branding and rightful allocation of the company goals. There unique circumstances
compasses of the better work done and the goodwill they are doing to assure the betterment of
the company itself (Lyandres, Marchica, Michaely, & Mura, 2019).
Strategic Asset Allocation
Analyzing the allocation of the assets the same is done very tactfully as the diversification is
done in terms with various allotment of money profile and as well as correct allocation with
respect to the return value.
Fixed Income
There are majorly based on the equity transactions and deals to assure the value in terms with the
equity based allocation.
Equities
The portfolio is hundred percent based on the equity allocation, however, done with the best
interest to have maximum return value.
Outline your strategy for each asset class:
The strategy for all the portfolio is same which being the equity classification of the portfolio.

Portfolio Analysis 5
It clearly states that the cash equity is 84.4 Percent and the long equity 15.6 percent.
Compare your equity portfolio sector weights relative to the S&P/TSX
Symbol Last Price Change
AAPL 324.87 -2.33%
BAC 34.91 -0.01%
GOOG 1,514.66 -3.61%
KO 59.61 0.2%
Equities Market Value of Long: C$7,811,289.47
Equities Market Value of Short: C$0.00
Equities Profit/Loss: -C$25,470.95
Total Market Value Long: C$7,811,289.47
Total Market Value Short: C$0.00
Total Profit/Loss: -C$25,470.95
(Humber Trading, 2020)
Discuss sector weighting decisions
The portfolio has been distributed wisely which assures that the weighing is done keeping mind
the base factor which being that the sectors doing better has been given a better margin.

Portfolio Analysis 6
What are your economic and capital market expectations?
The expectations are good and reasonable as the portfolio makes a steady advancement where
the return value is expected to be above average for all the times, whether the short term or the
long term.
Include qualitative and quantitative (i.e. financial ratios, valuation metrics)
The analysis done provides the following results :-
(Humber Trading, 2020)
Term to maturity, credit rating, governments, corporate
The equity diversification of the portfolio explains clearly that the level of the assets has been
justified in rightfully manner (Fouque, Sircar, & Zariphopoulou, 2017). It is all non government

Portfolio Analysis 7
investments as well as the credit rating will lead to provide an analysis which is based on the
corporate basis and of returns which will deal with the maturity on short term as well as long
term basis.
Reference

Portfolio Analysis 8
Fouque, J. P., Sircar, R., & Zariphopoulou, T. (2017). Portfolio optimization and stochastic
volatility asymptotics. Mathematical Finance, 27(3), 704-745.
HumberTrading. (2020). Humbertrading. Stocktrack. Retrieved From
https://humbertrading.stocktrak.com/portfolio
Lyandres, E., Marchica, M. T., Michaely, R., & Mura, R. (2019). Owners’ Portfolio
Diversification and Firm Investment. The Review of Financial Studies, 32(12), 4855-4904.