University Portfolio Management Report: FIN323 Analysis

This report details a hypothetical finance portfolio managed over a year, analyzing the performance of individual stocks like Cochlear, Webjet, A2Milk, and Facebook. It includes calculations of individual stock returns, all trades with options and futures, and brokerage fees. The analysis covers the period from December 1, 2017, to December 1, 2018, with specific data on stock prices and returns. The report calculates the average return, portfolio return, and discusses stock selection based on past performance and future prospects. The analysis includes a breakdown of trades, brokerage fees, and the rationale behind stock choices, offering a comprehensive overview of portfolio management strategies and outcomes. The report also presents the faculty of business school of accounting, economics and finance FIN323 portfolio management assignment academic assessment requirement and learning objectives.

Running head: FINANCE PORTFOLIO MANAGEMENT
Finance Portfolio Management
Name of the Student:
Name of the University:
Authors Note:

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FINANCE PORTFOLIO MANAGEMENT
Contents
Individual stock performance:.........................................................................................................2
All trades for quarter:.......................................................................................................................3
Brokerage fees:................................................................................................................................5
Stock selection:................................................................................................................................6
References:......................................................................................................................................7

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Individual stock performance:
Cochlear:
Individual stock performance
Quarter ending on Return Return %
01-03-18 $ 0.13 0.07
01-06-18 $ 21.40 11.76
01-09-18 $ 15.29 7.52
01-12-18 $ (45.60) - 26.36
Webjet:
Individual stock performance
Quarter ending on Return Return %
01-03-18 $ 2.38 25.42
01-06-18 $ 0.61 5.22
01-09-18 $ 4.46 36.05
01-12-18 $ (4.31) - 25.63
A2Milk:

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Individual stock performance
Quarter ending on Return Return %
01-03-18 $ 4.72 62.85
01-06-18 $ (2.62) - 21.42
01-09-18 $ 2.00 20.81
01-12-18 $ (1.28) - 12.39
Facebook:
Individual stock performance
Quarter ending on Return Return %
01-03-18 $ 0.84 0.48
01-06-18 $ 15.84 9.00
01-09-18 $ (16.05) - 8.37
01-12-18 $ (35.12) - 19.99
All trades for quarter (options and futures):
Cochlear:

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In respect of Cochlear the closing price of the share of the company was $181.75 per share on
01.12.2017 and the share price of the company increased to as high as $218.93 per share during
the one year period ending on 03.12.2018. During this period the share price of the company also
declined to as low as $156.03 per share also. Thus, there was option to the investors to buy as
well as sale the shares to earn profit (Farkoosh, 2012).
Webjet:
On December 1, 2017 the closing share price of the company was $9.12 per share. During the
year the share price reached as high as $17.38 per share, i.e. almost double the closing price of
December 1, 2017. The lowest was however, not very low at $9.12 per share. Thus, it is clear
that in case of Webjet the investors had only one option of selling the share. By selling the shares
at right time the investors could have earned double profit (Evans and van Vuuren, 2019).
A2Milk:
Similar to Webjet the share price of A2Milk showed significant growth as from the closing price
of $7.51 per share on December 1, 2017 the price rose to $13.17 during the period ending on 3rd
December 2018. During this period the lowest price of the share was $6.97 per share. Use of
futures as well as option in this case for the investors were limited to selling the shares at or
around the highest margin to earn significant profit noninvestment (Spina, 2015).
Facebook:
In case of Facebook the stock price kept on fluctuating during the course of 12 months starting
from December 01, 2017 thus, the investors had the option to use futures to make significant
profit by selling or acquiring shares as and when the share prices fluctuate significantly. The

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highest closing price of Facebook share during the period was $21750 per share with lowest
being $131.55 per share (Cumming and Murtinu, 2017).
Thus in the cases there were ample opportunity to trade in share as the share prices during the
entire period kept on fluctuating.
Brokerage fees:
Brokerage fees Transaction value Brokerage fees @0.5%
Company 25,000.00 125.00
Cochlear 25,000.00 125.00
Webjet 25,000.00 125.00
A2Milk 25,000.00 125.00
Facebook 25,000.00 125.00
Total brokerage 625.00
Calculation of average return during the 12 months period:
Company Return % return
Cochlear (8.78) (4.83%)
Webjet 3.14 33.53%
A2Milk 2.82 37.55%
Facebook (34.01) (19.42%)

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Assuming that the portfolio has equal investment in all the shares, i.e. $25000 has been invested
in each of these four companies, then the return to the portfolio is calculated below:
Company % return Proportionate
return %
Cochlear -4.83% -1.21%
Webjet 33.53% 8.38%
A2Milk 37.55% 9.39%
Facebook -19.42% -4.86%
Portfolio return 11.71%
Thus, it can be stated that the portfolio performance is quite satisfactory during the 12 months
period ending on 3rd of December, 2018.
Stock selection:
Selection of stock shall be made on the basis of past performance of different stocks as well as
the future prospects of such stocks. Thus, both the past performance of stocks as well as future
expectation from stocks shall be considered in selection of shares to build portfolio (Cambini and
Spiegel, 2015).

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References:
Cambini, C. and Spiegel, Y. (2015). Investment and Capital Structure of Partially Private
Regulated Firms. Journal of Economics & Management Strategy, 25(2), pp.487-515.
Cumming, D. and Murtinu, S. (2017). Banks Joining Venture Capital Investments: Portfolio
Selection, Strategic Objectives, Performance and Exit. SSRN Electronic Journal, 1(2),
pp.24-34.
Evans, C. and van Vuuren, G. (2019). Investment strategy performance under tracking error
constraints. Investment Management and Financial Innovations, 16(1), pp.239-257.
Farkoosh, P. (2012). The effect net assets value in purchasing the shares of investment
companies. IOSR Journal of Humanities and Social Science, 5(2), pp.17-20.
Spina, J. (2015). Survey on International Portfolio Investments. SSRN Electronic Journal, 3(5),
pp.12-61.