BFF3121 - Investments and Portfolio Management
RPM Portfolio Investment Project – Part 1 (Semester 2, 2024)
Value RPM assessment accounts for 35% of your total marks for the unit. It has two
parts:
- Part 1: Progress Report Reflection - 10% (this document)
- Part 2: Final Submission - 25% (Instructions released in Week 9).
Assessment
task purpose
This document relates to PART 1 of your RPM trading-based Assessment.
Develop a portfolio; justify decisions and develop skills as a reflective, evidence- informed portfolio manager.
Learning
Outcomes
2. Research and analyse live data to determine the value and performance
of securities and portfolios
4. Reflect on knowledge acquired over the unit through providing
evidence-based justification for decision making
5. Apply critical thinking, problem solving and aligned decision making by
selecting high quality points of interest and analysis to produce a quality
report and presentation
Your
assessment
task
As an investment portfolio manager, you will develop a tailored portfolio for a
specific client using modern portfolio theory and provide market justifications to
support decisions. You will reflect on lessons learnt and incorporate your
analysis of external factor influences in your selected security performances.
Word Limit &
conditions
Part 1: 1,000 Words.
A strict three (3) pages limit apply to the main report. Appendices, graphs,
charts and references are not included in your word count.
Font Arial, Size 12, Single line space.
Due Date Part 1 – Written Reflection – Friday 6 September 2024 (Week 7) at 11.55pm
Submission ● Via Moodle Assignment Submission.
● Turnitin will be used for similarity checking of all submissions.
● Following two files need to be submitted:
○ Written Report – A pdf file. (Named as follows: BFF3121_Portfolio
Project_xxxxxx. Replace xxxxx with your own student ID)
○ Excel file containing your transaction history (Named as follows:
BFF3121_Transaction History_xxxxxx. Replace xxxxx with your
own student ID).
Assessment
Criteria
You will be assessed on your ability to demonstrate the following:
• evidence- informed reflections showing strong market awareness and
knowledge
• aligned decision making to best serve the client and their portfolio
• your understanding of core concepts and their application to portfolio
decisions
Late Penalties ● 5% deduction per calendar day or part thereof for up to one week
● Submissions more than 7 calendar days after the due date will receive a
mark of zero (0) and may not receive assessment feedback
Feedback Feedback will be provided on student work via:
● general cohort performance
● specific student feedback 2 weeks post submission
Essential Portfolio Guidelines:
1. Must structure portfolio according to your assigned client’s requirements available under
‘Additional Information and Resources’.
2. Complete a minimum of 3 trades per week. Buying and selling are counted as two separate
trades. Less than 3 trades in any one week will incur a penalty, however, the assignment will
not be marked if overall trading is found to be insufficient. Orders that are placed during
weekends/public holiday will not get executed and will not be counted. Unexecuted Limit
orders will NOT be counted even if you send us screenshots.
3. You do not need to specifically invest in money market funds as any cash sitting in your RPM
account is a money market investment earning 1% per annum. You can invest a maximum of
$100,000 of your client’s money (i.e. idle cash) in risk-free money market funds.
4. You should not invest more than AU$100,000 in any one stock. If you are investing in any
international market, then same 100,000 limit of that foreign currency applies.
Objective - RPM Trading Exercise
The objective of this project is for you to manage your client’s portfolio by investing $500,000 AUD (of
YOUR CLIENT’S virtual money) in any stocks, bonds, options, or futures that are traded on the
Australian, the US and other international stock exchanges. You can also execute short selling, and
trade on margin at an annual interest rate of 4%. Your portfolio does not necessarily need to outperform
the market. You should, however, monitor the performance of various stock markets,
domestic/regional/global economies, and other domestic/regional/global events to develop a sense of
what is happening before taking buy/sell/hold decisions. At all times, you must have a purpose and a
justification for the decisions you make.
Part 1 Instructions
Your client has appointed you as their investment manager and trusted you with $500,000 AUD. You
will compile an interim report addressed to your client that outlines your strategy and reflects on
your proposed approach considering their guidelines. This should include an evidence-based
justification (from credible research and sources) for your decision making to this point in the Portfolio
Investment Project. Remember, you will receive a zero mark if you do not address your assigned
client’s requirements and structure your portfolio accordingly!
Read the next page carefully to understand the requirements of part 1 of your RPM assignment.
Written Report Requirements:
Total 50 Marks
The following format is suggested for your written report:
Section A (10 Marks) - Introduction:
An introduction to your client along with guidelines. You may want to assess their risk appetite, required
rate of return and their investment horizon. This will inform your trading strategy.
Section B (20 Marks) - Investment Plan and Implementation:
You are expected to include the following in your investment plan:
a. Asset allocation at the end of week-6 (include pie charts to exhibit industry and country wise
allocations).
b. The adopted strategy (e.g., growth investing, value investing, buy and hold investing etc. –
remember, diversification is not an investment strategy. We implement investment strategies to
achieve diversification- it’s an outcome of appropriate asset allocation/security selection to reduce
the portfolio risk). It’s worthwhile for students to do some own research to understand asset
allocation. Some quick start can be looking at some superannuation funds’ asset allocation
strategies to get some ideas.
c. Stock (security) selection process (e.g., fundamental analysis, technical analysis, news, analyst tips
etc.). You may include comparisons, data points, relevant calculations (not strictly required), current
affairs, history, and any other relevant information you consulted when making your decisions.
Students are expected to do their own research to monitor and develop an understanding of the day- to-day market conditions and reflections.
d. A week-by-week analysis of your portfolio is not required but you need to discuss the overall
strategy/implementation. You may use specific stocks (or trades) as examples to demonstrate what
triggered your investment decisions. It’s a good idea to include a line graph to exhibit week-by-week
portfolio performance.
Section C (15 Marks) – Lessons Learnt and Future Strategy:
a. A critical analysis of the lessons learnt in your trading journey so far, with regards to processes,
choices, combinations, selling or buying points, research, etc.
b. Which industry/shares did well (or did not do well). How did you respond? Provide relevant
information/news to support your arguments.
c. How the lessons learnt have shaped your strategy to this point and how will you manage your
portfolio in the future.
Presentation and References (5 Marks): Standard presentation of the report and any standard
referencing style. Remember, how you present your report, creates the first impression for your
reader.
If you are new to reflective writing, this resource from LEARN HQ might be useful. Something to note
is that you are not writing details about your process, but rather reflections on what you have learnt
while engaging in the assessment so far. Reflective writing is where you can highlight your errors - in
showing what you have learnt from them. The reasons why some decisions worked well (or
otherwise) may also be worth noting. The ability to reflect demonstrates your capability to explicitly
analyse past decisions and beliefs to make better informed decisions in the future.
Learning Objectives &
Criteria
HD - High Distinction
(80-100%)
Demonstration of
extended knowledge,
skills and attributes at an
exceptional level, showing
fluency, originality and
integration of concepts
D - Distinction
(70-79%)
Demonstration of
extended knowledge,
skills and attributes at a
superior level, showing
fluency and emerging
originality and integration
of concepts.
C - Credit
(60-69%)
Demonstration of
fundamental knowledge,
skills and attributes at a
proficient level, showing
fluency in concepts.
P - Pass
(50-59%)
Demonstration of
fundamental knowledge,
skills and attributes at a
satisfactory level.
N -Fail
(0-49%)
Lack of satisfactory
demonstration of
fundamental knowledge,
skills and expected
attributes.
Introduce the client and
demonstrate how well the
client’s requirement are
understood and if the
client specific needs are
being met.
20%
Insightful and
comprehensive reflections
and justifications,
demonstrating an
exceptional level of
understanding of the client,
ensuring that the client’s
objectives are being met.
Comprehensive reflections
and justifications
demonstrating a high level
of understanding of the
client, ensuring that the
client’s objectives are being
met.
Reasonable reflections and
justifications demonstrating
a good level of
understanding of the client,
a good effort that the client’s
objectives are being met.
Adequate Reflections and
justifications that indicate
some knowledge of the
client, adequate effort that
the client’s objectives are
being met.
Deficiencies in reflective
insight and justifications.
Lacking a clear
understanding of the client.
Client’s objectives are
mostly ignored.
Investment Plan: clear
asset allocation, stock
selection and rationale.
40%
Expert and critical
evaluation of financial
markets to make the best
possible allocation and
strategic decisions.
Decisions indicate deep
thought, logic and purpose,
reflecting a very strong
connection to concepts.
Critical evaluation of
financial markets to make
good allocation and
strategic decisions.
Decisions indicate thought,
logic and purpose reflecting
a strong connection to
concepts.
Considered evaluation of
financial markets to make
allocation and strategic
decisions. Decisions
generally indicate
connected thought, logic
and purpose reflecting a
good connection to
concepts
Some evaluation of financial
markets to make allocation
and decisions is attempted.
Decisions may indicate an
attempt at connected
thought, logic and purpose
reflecting a satisfactory
connection to concepts
Attempts at evaluating the
market are insufficient and
lack the connected thought,
logic and purpose expected
in this task.
*RPM Part 1 Rubrics*
Lessons Learnt: What
went well (or not) and
why. Future direction.
30%
Expert and critical
evaluation of past decisions
and a concise direction for
the future. Reflections
indicate deep thought, logic
and purpose, reflecting a
very strong connection to
concepts.
Critical evaluation of past
decisions and a good
direction for the future.
Reflections indicate
thought, logic and purpose,
reflecting a very strong
connection to concepts.
Expert evaluation of past
decisions and an adequate
direction for the future.
Reflections indicate logic
and purpose, reflecting a
strong connection to
concepts.
Considered evaluation of
past decisions and basic
idea about direction for the
future Reflections indicate
some logic and purpose,
reflecting a connection to
concepts.
Deficiencies in reflective
insight and justifications and
inadequate/no direction for
the future. Lacking a clear
understanding of lessons
learnt and very little
connection to concepts.
Uses professional
language to
produce a quality
reflection that is
evidence-informed
10%
Expertly produces a highly
tailored, well planned and
well executed portfolio for
the client, which
demonstrates
considerable professional
skill and strong market
analysis.
Produces a tailored, and
largely well planned and
well executed portfolio for
the client, which
demonstrates professional
skill and clear evidence of
market analysis.
Produces a mostly well
planned and well
executed portfolio for the
client, which demonstrates
developing professional
skills and evidence of
market analysis.
Produces an adequately
professional portfolio for
the client that shows
evidence of some
planning, as well as
attempts at well-timed
execution.
Produces a portfolio that
lacks satisfactory planning
and execution, as well as
lacking client connection
and/or evidence of market
analysis.
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