The paper "Possible Benchmarking Approach for the Fund Portfolio" is an outstanding example of a finance and accounting coursework. A long-term capital growth for the portfolio that would vehemently consist of only stocks options and government-traded bonds listed within the Australian Stock Exchange platform. A strategy that would foster a relatively stable form of income for the existing investors for at least a period of 10 to 15 years. A strategy that would make sure that investments made would definitely bring lots of overall returns for all portfolio holders with ZRT Systems. The portfolio management adopted a position trading strategy that basically involved the purchasing and holding of stock options as opposed to engaging in active trading.
I must say that this strategy worked for the better since the overall returns for these portfolios increased over time and, also helped in checking for the possibility of highly volatile stocks. In fact, I can certainly indicate that the trading strategy was fundamental in the attainment of a long-term strategy of the fund portfolio that related to improving on their immediate level of income and a stable rate of returns for these trading options. I also engaged lots of information from the Australian Financial Review to come up with a set of stock options that indicated a possible positive future outlook.
While this was important, I feel that I should have engaged more extensive research to ascertain other types of listed stocks that would have gathered enough returns either or a short-term or long-term period. I focused the fund portfolio on a positioning strategy that did not involve any room for short-term returns. I feel I would have readjusted the portfolio to reflect the possibility of amassing returns even on a short period. In the process of continued trading process and readjustments, I adopted the features and characteristics of a modern portfolio, which is emphatically focused on redeveloping an existing portfolio so that it only focuses on selling or readjusting assets classes that have a low covariance value.
This decision is solely focused on reducing the level of risks involved with engaging such portfolios in a long-term trading model. In this regards, major improvements would have made to include a different set of strategies that would have ensured that while some stocks are readjusted another set of classes are re-introduced.
I should have adopted the asset allocation strategy, which is entirely focused on a diversification model that seeks to add a set of multiple levels of assets that are different in their nature. To effectively widen the portfolio scope of investments, this model would have ensured that a high degree of assets from different trading platforms other than the Australian Stock Exchange have all been incorporated.
Recent findings indicate that such an Asia-based trading platform like the Hong Kong Stock Exchange has continued to show lots of improvements in comparison to most benchmarking platforms across the globe. Thus, I feel that it would have been proper having such stock options and other government-traded bonds well represented in the portfolio at hand.
Ibbotson, R, G. & Kaplan, P, D. 2000. “Does Asset Allocation Policy Explain 40, 90, or 100 Per-cent of Performance?” Financial Analysts Journal. Accessed from http://corporate.morningstar.com/ib/documents/MethodologyDocuments/IBBAssociates/AssetAllocationExplain.pdf
Kuepper, J. 2015. ‘How to Measure Risk-adjusted returns’. Portfolio Management. Accessed from http://etfdb.com/portfolio-management/how-to-measure-risk-adjusted-returns/