Capstone Project- Erkia Kozlov’s portfolio construction (SAA & TAA) Wealth around $37 Million
In this project what I have achieved as well as how it developed my mind set and change my approach for investment allocation. • Initially I have to get all relevant information about client which required before taking any approach regarding investment; it’s established my mindset that in real what is the different type’s requirement important for me to taking any approach for the investment. Milestone-2
• Firstly in this project, Prompt-1 where I have to computed the return of different asset class quantities • Further in the Prompt-2 I have to get different Strategic asset allocation(SAA) into the ratios of different asset class, here I have computed the monthly returns of all SAA via using formulas( this project prior condition is that without using formulas my prompt is not be checked). • In another prompt-3 I have computed the yearly returns. • Prompt-4 I have to calculate the average yearly return and volatility of the yearly return.
Milestone-3
• In this milestone I have to computed the distributed Tactical asset allocation return on the getting the next year return of asset classes. • In the next prompt I have to compute the lowest and highest expected yearly return on the 68% of time. • In the next prompts I have to understand the sense of Value at Risk and Expected shortfall due to computed it, and examined as well as developed the different the significance of different Risk management approach.(Variance-Covariance, Historical Approach) • In this last prompt I have to equated and make a plan for as a aggressive investor during the market crash how to manage their risk via using prior getting data as well as how to change their asset distribution into the ratios. Milestone-4 • In this prompt initially I have to get the next 3 year return of different asset class returns into data sheet, from given data set we need to calculate the performance ratios of our client SAA & TAA. • When I calculate the performance analysis I have to computed the Sharpe, sortino ratios and at the end calculate the MACR. • After all this computation in all these I concluded that in mention in other section
Output/Conclusion
- My client original allocation risk issues which is based on due to their biased view.
- How to find out the good investment advisor on their performance analysis report, what is the key point required to analyze performance of fund managers.
- What is difference between asset allocations on the basis of client behavior?
- How to justify the sometime extra return as well as low return by the portfolio theories.
- Why emerging market is more attractive than established market?