Fund Management Project Performance Report

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BU.232.701 (W3) – Investment

Fund Management Project Performance Report

W3 Group6

Reporting Period: Oct 20, 2016 – Nov 18, 2016

Honor code

 “We, Di Ma, Jie Zhang, Wencong Zhou, Xuan Pan, Yu Luo and Zhuohong Wu pledge that the work we are submitting is of our own ideas. It adheres to the Carey Business School’s Honor Code. We will strive for excellence, honesty, integrity and originality in the work we submit, both individually and as a member of a group."

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Executive Summary[pic 2]

W3Group6 Fund was established in October 2016 and invests primarily in equity securities and exchange traded fund (ETF) at U.S market. In the third quarter of 2016, U.S gross domestic product rose 2.9%, the largest gain in two years. But the U.S stock market in October was still full of uncertainty resulted from mixed third quarter corporate earnings results, interest-rate worries and political uncertainty ahead of the U.S. presidential election. Until November 18, 2016, the market value of W3Group fund is $531,549.10 and the total portfolio value is $987,569.30. In this period, the fund generated a return of -1.24% while S&P 500 index has a return rate of 2.73%. The negative return rate is primarily caused by general market risk, fluctuation in Chinese market and uncertainty of U.S presidential election. Although the return rate of our fund temporarily lagged behind the market average, we still expect it will exceed the performance of S&P 500 index in the near future. Firstly, it takes time for the market to discover the undervalued companies. Basically, the loss of our fund was mostly generated in the initial stage and now there is an obvious upward trend. Secondly, the uncertainty of U.S presidential election and of Federal Reserve has been importantly reduced. At the same time, the announcement of a series of new policy has also provided plenty of investment opportunities. In this case, we predict the fund will experience a rapid growth soon and achieve our investment objective in the near future.

Fund Overview & Investment Objectives

W3Group6 Fund seeks to generate medium to long-term capital appreciation across all market environments while maintaining liquidity and strictly controlling the risk level. The fund invests primarily in equity securities using traditional ‘top-down’ approach and tactically seeking opportunities in precious metal and foreign currency by Exchange Traded Funds (ETF). The fund may implement short positions of precious metal and foreign currency through ETFs to track and adjust to the changing market.