StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Trading Equity and Stock Funds - Assignment Example

Cite this document
Summary
We have selected five mutual funds such as GCC funds, British Stock Fund, Alahli trading fund, Alahli US trading equity fund and Alahli Europe trading equity fund. We will analyze the performance of the mutual for five years.
The objective of the fund is to achieve capital…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
Trading Equity and Stock Funds
Read Text Preview

Extract of sample "Trading Equity and Stock Funds"

Finance and Accounting Funds work report Answer Part We have selected five mutual funds such as GCC funds, British Stock Fund, Alahli trading fund, Alahli US trading equity fund and Alahli Europe trading equity fund. We will analyze the performance of the mutual for five years. Objectives of the fund Fund name Short Name Inception Year Fund manager Objectives GCC Banks & Financial Institutions Equity Fund (Amwal) GCC Funds 2006 Albilad Investment Co. The objective of the fund is to achieve capital appreciation in the long term by investing in different equities issues by banks and various Islamic financial institutions worldwide. It invests in those equities where the investment can be considered as vast and promising as the institutions are rapidly growing and equally active in different industries such as finance and banking. British Stock Fund British Stock Fund 1992 Riyadh Capital Company The objective of this fund is to earn capital growth in the long run by investing in various shares listed in the UK. The investments are made in companies of various sizes to get a broad exposure in the UK market. AlAhli GCC Trading Equity Fund GCC Trading Equity Fund 2005 NCB Capital Company The objective of the fund is to provide long term capital appreciation to the investors by investing in various GCC companies which are listed in GCC stock exchanges by maintain the Islamic Shariah principles. AlAhli US Trading Equity Fund US Trading Equity Fund 1993 NCB Capital Company The objective of the fund is to invest in securities of companies that are listed on US stock exchanges. AlAhli Europe Trading Equity Fund Europe Trading Equity Fund 1994 NCB Capital Company The objective of the fund is to invest in various securities of companies that are listed on major stock exchanges in Europe. Table 1. Fund Name Annual Return of 2009 Annual Return of 2010 Annual Return of 2011 Annual Return of 2012 Annual Return of 2013 Arithmetic Mean Geometric Mean Standard Deviation GCC Banks & Financial Institutions Equity Fund (Amwal) 20.98% 32.46% -63.21% -98.41% 0 0.78 0.39299 0.566414175 British Stock Fund 148.42% 57.29% -56.03% 104.69% 730.58% 2.97 1.963885947 3.07867764 AlAhli GCC Trading Equity Fund 426.51% 98.86% -26.55% 131.76% 432.41% 3.13 2.485658494 2.066029258 AlAhli US Trading Equity Fund 177.91% -19.63% 29.37% 144.13% 415.96% 2.50 2.052193122 1.694626153 AlAhli Europe Trading Equity Fund 94.30% -32.46% 62.19% 136.86% 163.50% 1.85 1.677494122 0.762490197 Formula to Calculate To calculate the annual return for each year of the five mutual funds we have collected the period return for each month starting from January to December for each financial year from 2009 to 2013. After that in the next column in excel we have calculated the period return +1 and then multiplied them using the product function. After that to calculate the final annual return for each year we have used the formula = ((product of the period return + 1)-1)*100%. Thus the formula is to add 1 to the period return of each month and then multiply all the months’ value of period return +1. After that deduct 1 from the value and multiply it with 100 to get the total annual return of that year. To calculate the arithmetic mean we have used the formula =average (cell range) in excel. The geometric mean has been calculated as = geomean(cell range) and standard deviation can be calculated as = stdev(cell range). GCC Funds The manager of GCC banks and financial institutions equity fund is Albilad Investment Co. It is under the sub category of Shariah compliant and operates in Unites States of America Dollars. Per unit current price is $0.8342. The objective of the fund is to achieve capital appreciation in the long term by investing in different equities issues by banks and various Islamic financial institutions worldwide. It invests in those equities where the investment can be considered as vast and promising as the institutions are rapidly growing and equally active in different industries such as finance and banking. Thus promising returns can be achieved in the line with the rate of growth of these industries. 2009 Annual Return of GCC Banks and Financial Institutions Equity Fund, 2009 Period Ending Period Return Period Return + 1 Jan-09 -7.76% 0.92 Feb-09 -12.95% 0.87 Mar-09 -9.97% 0.90 Apr-09 4.43% 1.04 May-09 5.59% 1.06 Jun-09 1.87% 1.02 Jul-09 4.64% 1.05 Aug-09 4.42% 1.04 Sep-09 10.39% 1.10 Oct-09 9.16% 1.09 Nov-09 9.55% 1.10 Dec-09 3.29% 1.03     1.21   Annual Total Return 20.98%   Arithmetic Mean 1.02   Geometric Mean 1.015998155   Standard Deviation 0.078268278 2010 Annual Return of GCC Banks and Financial Institutions Equity Fund, 2010 Period Ending Period Return Period Return + 1 Jan-10 0.68% 1.01 Feb-10 2.88% 1.03 Mar-10 9.69% 1.10 Apr-10 6.53% 1.07 May-10 -0.60% 0.99 Jun-10 -2.69% 0.97 Jul-10 1.65% 1.02 Aug-10 1.37% 1.01 Sep-10 2.68% 1.03 Oct-10 0.94% 1.01 Nov-10 1.04% 1.01 Dec-10 4.85% 1.05     1.32   Annual Total Return 32.46%   Arithmetic Mean 1.02   Geometric Mean 1.023702417   Standard Deviation 0.033026073 2011 Annual Return of GCC Banks and Financial Institutions Equity Fund, 2011 Period Ending Period Return Period Return + 1 Jan-11 -1.01% 0.99 Feb-11 -12.46% 0.88 Mar-11 -3.58% 0.96 Apr-11 -3.42% 0.97 May-11 -5.31% 0.95 Jun-11 -7.41% 0.93 Jul-11 -7.91% 0.92 Aug-11 -9.53% 0.90 Sep-11 -10.52% 0.89 Oct-11 -10.58% 0.89 Nov-11 -12.16% 0.88 Dec-11 -11.19% 0.89     0.37   Annual Total Return -63.21%   Arithmetic Mean 0.92   Geometric Mean 0.920057037   Standard Deviation 0.038087617 2012 Annual Return of GCC Banks and Financial Institutions Equity Fund, 2012 Period Ending Period Return Period Return + 1 Jan-12 2.01% 1.02 Feb-12 7.57% 1.08 Mar-12 13.56% 1.14 Apr-12 -34.89% 0.65 May-12 -38.48% 0.62 Jun-12 -39.51% 0.60 Jul-12 -37.95% 0.62 Aug-12 -35.62% 0.64 Sep-12 -38.20% 0.62 Oct-12 -39.26% 0.61 Nov-12 -41.41% 0.59 Dec-12 -40.07% 0.60     0.02   Annual Total Return -98.41%   Arithmetic Mean 0.73   Geometric Mean 0.708126573   Standard Deviation 0.21063742 2013 Annual Return of GCC Banks and Financial Institutions Equity Fund, 2013 Period Ending Period Return Period Return + 1 Jan-13 -39.12% 0.6088 Feb-13 -54.46% 0.4554 Mar-13 -40.33% 0.5967 Apr-13 -37.47% 0.6253 May-13 -37.59% 0.6241 Jun-13 -37.03% 0.6297 Jul-13 -32.97% 0.6703 Aug-13 -34.14% 0.6586 Sep-13 -32.50% 0.6750 Oct-13 -33.37% 0.6663 Nov-13 -30.98% 0.6902 Dec-13 -30.07% 0.6993     0.00   Annual Total Return 0   Arithmetic Mean 0.6333   Geometric Mean 0.629820684   Standard Deviation 0.064793665 From the above table it can be seen the Annual total return of GCC Banks and Financial Institutions equity fund for the five years. In the year 2009 the annual total return of the equity fund was 20.98%; in 2010 the return has increased to 32.46%. But after that the total return of the fund started decreasing and in 2013 the total annual return of the fund was zero as in each month the return of the fund was negative. Arithmetic and geometric mean of the year 2009 and 2010 was highest and the standard deviation of returns of the year 2012 was highest at 0.2106. Five Year Annual Return Annual Return of GCC Banks and Financial Institutions Equity Fund for Five Years Period Ending Annual Total Return Annual Total Return + 1 2009 20.98% 1.21 2010 32.46% 1.32 2011 -63.21% 0.37 2012 -98.41% 0.02 2013 0 1.00     0.01   Annual Total Return -99.06%   Arithmetic Mean 0.78   Geometric Mean 0.39299   Standard Deviation 0.566414175 From the above table it can be seen that the annual total return of the five years is negative and the arithmetic mean is 0.78. The geometric mean is less than arithmetic mean at 0.39299. The standard deviation of the fund for five years is 0.5664. Formula to Calculate To calculate the annual return for each year of the five mutual funds we have collected the period return for each month starting from January to December for each financial year from 2009 to 2013. After that in the next column in excel we have calculated the period return +1 and then multiplied them using the product function. After that to calculate the final annual return for each year we have used the formula = ((product of the period return + 1)-1)*100%. Thus the formula is to add 1 to the period return of each month and then multiply all the months’ value of period return +1. After that deduct 1 from the value and multiply it with 100 to get the total annual return of that year. To calculate the arithmetic mean we have used the formula =average (cell range) in excel. The geometric mean has been calculated as = geomean(cell range) and standard deviation can be calculated as = stdev(cell range). British Stock Fund 2009 Annual Return of British Stock Fund, 2009 Period Ending Period Return Period Return + 1 Jan-09 -4.85% 0.95 Feb-09 -9.94% 0.90 Mar-09 -4.26% 0.96 Apr-09 1.35% 1.01 May-09 4.66% 1.05 Jun-09 1.20% 1.01 Jul-09 7.98% 1.08 Aug-09 13.22% 1.13 Sep-09 20.89% 1.21 Oct-09 20.89% 1.21 Nov-09 25.98% 1.26 Dec-09 25.32% 1.25     2.48   Annual Total Return 148.42%   Arithmetic Mean 1.09   Geometric Mean 1.078778704   Standard Deviation 0.12498187 2010 Annual Return of British Stock Fund, 2010 Period Ending Period Return Period Return + 1 Jan-09 -3.77% 0.96 Feb-09 -0.12% 1.00 Mar-09 8.18% 1.08 Apr-09 6.29% 1.06 May-09 -0.17% 1.00 Jun-09 -4.88% 0.95 Jul-09 4.52% 1.05 Aug-09 0.81% 1.01 Sep-09 7.76% 1.08 Oct-09 8.59% 1.09 Nov-09 5.53% 1.06 Dec-09 15.19% 1.15     1.57   Annual Total Return 57.29%   Arithmetic Mean 1.04   Geometric Mean 1.03846502   Standard Deviation 0.057958911 2011 Annual Return of British Stock Fund, 2011 Period Ending Period Return Period Return + 1 Jan-09 -2.56% 0.97 Feb-09 -0.26% 1.00 Mar-09 -0.52% 0.99 Apr-09 1.12% 1.01 May-09 -1.08% 0.99 Jun-09 -3.64% 0.96 Jul-09 -4.76% 0.95 Aug-09 -16.27% 0.84 Sep-09 -15.45% 0.85 Oct-09 -10.65% 0.89 Nov-09 -11.37% 0.89 Dec-09 -11.62% 0.88     0.44   Annual Total Return -56.03%   Arithmetic Mean 0.94   Geometric Mean 0.933828191   Standard Deviation 0.062632054 2012 Annual Return of British Stock Fund, 2012 Period Ending Period Return Period Return + 1 Jan-09 3.58% 1.04 Feb-09 8.78% 1.09 Mar-09 8.38% 1.08 Apr-09 6.82% 1.07 May-09 -1.74% 0.98 Jun-09 2.59% 1.03 Jul-09 3.57% 1.04 Aug-09 5.25% 1.05 Sep-09 7.21% 1.07 Oct-09 8.54% 1.09 Nov-09 9.63% 1.10 Dec-09 11.94% 1.12     2.05   Annual Total Return 104.69%   Arithmetic Mean 1.06   Geometric Mean 1.061513117   Standard Deviation 0.037387288 2013 Annual Return of British Stock Fund, 2013 Period Ending Period Return Period Return + 1 Jan-09 8.62% 1.09 Feb-09 11.25% 1.11 Mar-09 12.80% 1.13 Apr-09 15.32% 1.15 May-09 20.79% 1.21 Jun-09 14.55% 1.15 Jul-09 23.94% 1.24 Aug-09 19.86% 1.20 Sep-09 21.35% 1.21 Oct-09 27.75% 1.28 Nov-09 27.39% 1.27 Dec-09 30.17% 1.30     8.31   Annual Total Return 730.58%   Arithmetic Mean 1.19   Geometric Mean 1.192930641   Standard Deviation 0.070219877 From the above table it can be seen that the annual total return of British Stock fund for 2009 was 148.42% and then it has decreased to 57.29%. It was negative for the year as the returns were negative for all the months in 2011. The return of the fund has increased over the years and it was maximum in 2013. The arithmetic and geometric mean of the year 2013 is the highest and the standard deviation of the returns of 2009 was highest at 0.1249. Five Year Annual Return Annual Return of British Stock Fund for Five Years Period Ending Annual Total Return Annual Total Return + 1 2009 148.42% 2.48 2010 57.29% 1.57 2011 -56.03% 0.44 2012 104.69% 2.05 2013 730.58% 8.31     29.21   Annual Total Return 28.21   Arithmetic Mean 2.97   Geometric Mean 1.963885947   Standard Deviation 3.07867764 From the above table it can be seen that the arithmetic mean of the five years total return is 2.97 and the geometric mean is less than the arithmetic mean at 1.96. The standard deviation of the total returns for five years is 3.0786. Formula to Calculate To calculate the annual return for each year of the five mutual funds we have collected the period return for each month starting from January to December for each financial year from 2009 to 2013. After that in the next column in excel we have calculated the period return +1 and then multiplied them using the product function. After that to calculate the final annual return for each year we have used the formula = ((product of the period return + 1)-1)*100%. Thus the formula is to add 1 to the period return of each month and then multiply all the months’ value of period return +1. After that deduct 1 from the value and multiply it with 100 to get the total annual return of that year. To calculate the arithmetic mean we have used the formula =average (cell range) in excel. The geometric mean has been calculated as = geomean(cell range) and standard deviation can be calculated as = stdev(cell range). Alahli GCC Trading Equity Fund 2009 Annual Return of Alahli GCC Trading Equity Fund 2009 Period Ending Period Return Period Return + 1 Jan-09 -3.16% 0.97 Feb-09 -8.52% 0.91 Mar-09 -6.60% 0.93 Apr-09 7.67% 1.08 May-09 15.42% 1.15 Jun-09 17.21% 1.17 Jul-09 20.23% 1.20 Aug-09 25.92% 1.26 Sep-09 32.77% 1.33 Oct-09 34.25% 1.34 Nov-09 29.49% 1.29 Dec-09 25.02% 1.25     5.27   Annual Total Return 426.51%   Arithmetic Mean 1.16   Geometric Mean 1.148463375   Standard Deviation 0.152069953 2010 Annual Return of Alahli GCC Trading Equity Fund 2010 Period Ending Period Return Period Return + 1 Jan-09 -1.07% 0.99 Feb-09 2.46% 1.02 Mar-09 10.30% 1.10 Apr-09 12.26% 1.12 May-09 2.21% 1.02 Jun-09 0.94% 1.01 Jul-09 6.48% 1.06 Aug-09 4.46% 1.04 Sep-09 8.81% 1.09 Oct-09 7.21% 1.07 Nov-09 6.81% 1.07 Dec-09 10.81% 1.11     1.99   Annual Total Return 98.86%   Arithmetic Mean 1.06   Geometric Mean 1.058959587   Standard Deviation 0.042201644 2011 Annual Return of Alahli GCC Trading Equity Fund 2011 Period Ending Period Return Period Return + 1 Jan-09 -3.65% 0.96 Feb-09 -10.02% 0.90 Mar-09 -2.49% 0.98 Apr-09 2.27% 1.02 May-09 1.30% 1.01 Jun-09 0.47% 1.00 Jul-09 -0.36% 1.00 Aug-09 -5.03% 0.95 Sep-09 -3.51% 0.96 Oct-09 -3.42% 0.97 Nov-09 -4.91% 0.95 Dec-09 -0.46% 1.00     0.73   Annual Total Return -26.55%   Arithmetic Mean 0.98   Geometric Mean 0.974608646   Standard Deviation 0.033938513 2012 Annual Return of Alahli GCC Trading Equity Fund 2012 Period Ending Period Return Period Return + 1 Jan-09 -0.38% 1.00 Feb-09 6.68% 1.07 Mar-09 11.45% 1.11 Apr-09 11.25% 1.11 May-09 5.93% 1.06 Jun-09 3.01% 1.03 Jul-09 5.31% 1.05 Aug-09 9.71% 1.10 Sep-09 8.42% 1.08 Oct-09 9.79% 1.10 Nov-09 6.88% 1.07 Dec-09 9.66% 1.10     2.32   Annual Total Return 131.76%   Arithmetic Mean 1.07   Geometric Mean 1.07255620   Standard Deviation 0.03508956 2013 nnual Return of Alahli GCC Trading Equity Fund 013 Period nding Period Return Period Return + 1 Jan-09 3.14% 1.03 eb-09 2.89% 1.03 Mar-09 7.35% 1.07 Apr-09 10.08% 1.10 May-09 13.35% 1.13 Jun-09 12.40% 1.12 Jul-09 18.66% 1.19 Aug-09 17.79% 1.18 ep-09 21.49% 1.21 Oct-09 21.54% 1.22 Nov-09 25.35% 1.25 Dec-09 28.81% 1.29   5.32   Annual Total Return 432.41%   Arithmetic Mean 1.15   Geometric Mean 1.149530293   Standard Deviation 0.084356183 From the above table it can be seen the annual return of Alahli GCC Trading Equity Fund was 426.51% in 2009 and then it has decreased in 2010 and 2011. After that it has again increased over the years in 2012 and 2013. The arithmetic mean and geometric mean of 2009 was highest and the standard deviation of returns of the year was also higher at 0.1260. Five Year Annual Return Annual Return of Alahli GCC Trading Equity Fund for Five Years Period ending Annual Total Return Annual Total Return + 1 2009 426.51% 5.27 2010 98.86% 1.99 2011 -26.55% 0.73 2012 131.76% 2.32 2013 432.41% 5.32     94.89   Annual Total Return 93.89   Arithmetic Mean 3.13   Geometric Mean 2.485658494   Standard Deviation 2.066029258 From the above table it can be seen that the arithmetic mean of the total five years return is 3.13 but the geometric mean is 2.48. The standard deviation of the annual returns for five years is 2.0660. But it can be seen that the fund has earned a highest total return of 93.89% in the five years. Formula to Calculate To calculate the annual return for each year of the five mutual funds we have collected the period return for each month starting from January to December for each financial year from 2009 to 2013. After that in the next column in excel we have calculated the period return +1 and then multiplied them using the product function. After that to calculate the final annual return for each year we have used the formula = ((product of the period return + 1)-1)*100%. Thus the formula is to add 1 to the period return of each month and then multiply all the months’ value of period return +1. After that deduct 1 from the value and multiply it with 100 to get the total annual return of that year. To calculate the arithmetic mean we have used the formula =average (cell range) in excel. The geometric mean has been calculated as = geomean(cell range) and standard deviation can be calculated as = stdev(cell range). Alahli US Trading Equity Fund 2009 Annual Return of Alahli US Trading Equity Fund 2009 Period Ending Period Return Period Return + 1 Jan-09 0.35% 1.00 Feb-09 -8.66% 0.91 Mar-09 -4.85% 0.95 Apr-09 1.25% 1.01 May-09 4.22% 1.04 Jun-09 4.17% 1.04 Jul-09 12.24% 1.12 Aug-09 14.76% 1.15 Sep-09 18.51% 1.19 Oct-09 18.25% 1.18 Nov-09 25.93% 1.26 Dec-09 27.53% 1.28     2.78   Annual Total Return 177.91%   Arithmetic Mean 1.09   Geometric Mean 1.088911675   Standard Deviation 0.118002947 2010 Annual Return of Alahli US Trading Equity Fund 2010 Period Ending Period Return Period Return + 1 Jan-09 -2.88% 0.97 Feb-09 -2.49% 0.98 Mar-09 1.46% 1.01 Apr-09 2.95% 1.03 May-09 -6.24% 0.94 Jun-09 -10.95% 0.89 Jul-09 -5.09% 0.95 Aug-09 -8.98% 0.91 Sep-09 -1.22% 0.99 Oct-09 2.25% 1.02 Nov-09 3.06% 1.03 Dec-09 8.22% 1.08     0.80   Annual Total Return -19.63%   Arithmetic Mean 0.98   Geometric Mean 0.981956949   Standard Deviation 0.055691201 2011 Annual Return of Alahli US Trading Equity Fund 2011 Period Ending Period Return Period Return + 1 Jan-09 1.90% 1.02 Feb-09 4.63% 1.05 Mar-09 4.85% 1.05 Apr-09 7.81% 1.08 May-09 5.83% 1.06 Jun-09 4.31% 1.04 Jul-09 4.35% 1.04 Aug-09 -4.80% 0.95 Sep-09 -6.20% 0.94 Oct-09 1.62% 1.02 Nov-09 2.64% 1.03 Dec-09 0.05% 1.00     1.29   Annual Total Return 29.37%   Arithmetic Mean 1.02   Geometric Mean 1.021691585   Standard Deviation 0.041715976 2012 Annual Return of Alahli US Trading Equity Fund 2012 Period Ending Period Return Period Return + 1 Jan-09 4.50% 1.05 Feb-09 11.43% 1.11 Mar-09 15.69% 1.16 Apr-09 13.35% 1.13 May-09 4.60% 1.05 Jun-09 2.45% 1.02 Jul-09 4.22% 1.04 Aug-09 7.36% 1.07 Sep-09 8.80% 1.09 Oct-09 4.77% 1.05 Nov-09 7.56% 1.08 Dec-09 8.75% 1.09     2.44   Annual Total Return 144.13%   Arithmetic Mean 1.08   Geometric Mean 1.07721297   Standard Deviation 0.040467024 2013 Annual Return of Alahli US Trading Equity Fund 2013 Period Ending Period Return Period Return + 1 Jan-09 4.79% 1.05 Feb-09 6.17% 1.06 Mar-09 8.29% 1.08 Apr-09 7.70% 1.08 May-09 10.68% 1.11 Jun-09 7.85% 1.08 Jul-09 14.74% 1.15 Aug-09 13.17% 1.13 Sep-09 20.42% 1.20 Oct-09 26.14% 1.26 Nov-09 28.54% 1.29 Dec-09 31.39% 1.31     5.16   Annual Total Return 415.96%   Arithmetic Mean 1.15   Geometric Mean 1.146527395   Standard Deviation 0.093379334 From the above table it can be seen the annual total return of Alahli US trading equity fund was 177.91% in 2009 and then it has earned negative return in 2010. In the year 2011, it has increased to 29.37% and in 2013 it has earned highest return of 415.96%. The arithmetic and geometric mean of the year 2013 is highest at 1.5 and 1.1465 respectively. The standard deviation of returns the year 2009 was highest at 0.1180. Five Year Annual Return Annual Return of Alahli US Trading Equity Fund for Five Years Period Ending Annual Total Return Annual Total Return + 1 2009 177.91% 2.78 2010 -19.63% 0.80 2011 29.37% 1.29 2012 144.13% 2.44 2013 415.96% 5.16     36.40   Annual Total Return 35.40   Arithmetic Mean 2.50   Geometric Mean 2.052193122   Standard Deviation 1.694626153 From the above table it can be seen that the arithmetic of the total five years annual return is 2.50 where as the geometric mean is slightly lower at 2.0521. The standard deviation of the annual total return of five years is 1.6946. Formula to Calculate To calculate the annual return for each year of the five mutual funds we have collected the period return for each month starting from January to December for each financial year from 2009 to 2013. After that in the next column in excel we have calculated the period return +1 and then multiplied them using the product function. After that to calculate the final annual return for each year we have used the formula = ((product of the period return + 1)-1)*100%. Thus the formula is to add 1 to the period return of each month and then multiply all the months’ value of period return +1. After that deduct 1 from the value and multiply it with 100 to get the total annual return of that year. To calculate the arithmetic mean we have used the formula =average (cell range) in excel. The geometric mean has been calculated as = geomean(cell range) and standard deviation can be calculated as = stdev(cell range). Alahli Europe Trading Equity Fund 2009 Annual Return of Alahli Europe Trading Equity Fund 2009 Period Ending Period Return Period Return + 1 Jan-09 -6.77% 0.93 Feb-09 -12.92% 0.87 Mar-09 -12.37% 0.88 Apr-09 -5.77% 0.94 May-09 2.62% 1.03 Jun-09 2.05% 1.02 Jul-09 8.10% 1.08 Aug-09 13.53% 1.14 Sep-09 18.86% 1.19 Oct-09 20.72% 1.21 Nov-09 26.33% 1.26 Dec-09 24.41% 1.24     1.94   Annual Total Return 94.30%   Arithmetic Mean 1.07   Geometric Mean 1.056913673   Standard Deviation 0.141922511 2010 Annual Return of Alahli Europe Trading Equity Fund 2010 Period Ending Period Return Period Return + 1 Jan-09 -1.19% 0.99 Feb-09 -3.14% 0.97 Mar-09 0.46% 1.00 Apr-09 -1.86% 0.98 May-09 -11.73% 0.88 Jun-09 -12.28% 0.88 Jul-09 -6.62% 0.93 Aug-09 -8.02% 0.92 Sep-09 1.03% 1.01 Oct-09 2.42% 1.02 Nov-09 -1.24% 0.99 Dec-09 5.31% 1.05     0.68   Annual Total Return -32.46%   Arithmetic Mean 0.97   Geometric Mean 0.967818946   Standard Deviation 0.055178419 2011 Annual Return of Alahli Europe Trading Equity Fund 2011 Period Ending Period Return Period Return + 1 Jan-09 0.77% 1.01 Feb-09 3.44% 1.03 Mar-09 4.50% 1.05 Apr-09 10.82% 1.11 May-09 9.97% 1.10 Jun-09 8.75% 1.09 Jul-09 10.04% 1.10 Aug-09 1.24% 1.01 Sep-09 -3.45% 0.97 Oct-09 3.65% 1.04 Nov-09 1.17% 1.01 Dec-09 -0.39% 1.00     1.62   Annual Total Return 62.19%   Arithmetic Mean 1.04   Geometric Mean 1.041125437   Standard Deviation 0.046922808 2012 Annual Return of Alahli Europe Trading Equity Fund 2012 Period Ending Period Return Period Return + 1 Jan-09 4.00% 1.04 Feb-09 9.89% 1.10 Mar-09 8.52% 1.09 Apr-09 8.89% 1.09 May-09 -2.66% 0.97 Jun-09 -0.65% 0.99 Jul-09 5.30% 1.05 Aug-09 7.74% 1.08 Sep-09 11.07% 1.11 Oct-09 10.68% 1.11 Nov-09 11.62% 1.12 Dec-09 16.50% 1.17     2.37   Annual Total Return 136.86%   Arithmetic Mean 1.08   Geometric Mean 1.074502202   Standard Deviation 0.05361856 2013 Annual Return of Alahli Europe Trading Equity Fund 2013 Period Ending Period Return Period Return + 1 Jan-09 4.72% 1.05 Feb-09 2.10% 1.02 Mar-09 2.95% 1.03 Apr-09 6.75% 1.07 May-09 7.35% 1.07 Jun-09 2.04% 1.02 Jul-09 7.38% 1.07 Aug-09 7.32% 1.07 Sep-09 11.97% 1.12 Oct-09 16.15% 1.16 Nov-09 15.62% 1.16 Dec-09 18.14% 1.18     2.63   Annual Total Return 163.50%   Arithmetic Mean 1.09   Geometric Mean 1.084088531   Standard Deviation 0.05632549 From the above table it can be seen the annual return of Alahli Europe trading equity fund was 94.30% in 2009 and then it has earned negative return in 2010. After that in 2011 it has again increased to 62.19% and the return of the fund is highest in the year 2013. The arithmetic and geometric mean of returns of the fund is highest at 1.09 and 1.0840 in 2013. The standard deviation of returns was highest in 2009. Five Year Annual Return Annual Return of Alahli Europe Trading Equity Fund for Five Years Period Ending Annual Total Return Annual Total Return + 1 2009 94.30% 1.94 2010 -32.46% 0.68 2011 62.19% 1.62 2012 136.86% 2.37 2013 163.50% 2.63     13.28   Annual Total Return 12.28   Arithmetic Mean 1.85   Geometric Mean 1.677494122   Standard Deviation 0.762490197 From the above table it can be seen that the arithmetic mean of the total returns of the fund for five years is 1.85 but the geometric mean is slightly lower at 1.6774. The standard deviation of the total returns of the fund for five years is 0.7624. Correlation Matrix of the five funds Correlation matrix is a statistical measure which shows that how the funds move in relation to each other. Correlation between the five mutual funds has been calculated using the correlation coefficient which has range between 1 and -1. Perfectly positive correlation which has a correlation coefficient of 1 states that if one fund moves in a particular direction then other funds will also move in the same direction. Here it can be seen that in 2009 all the funds have positive correlation of +1 which indicates if one security moves either up or down then other will move in the same direction. After that it can be seen that the correlation is positive but less than 1 which indicates that the funds have positive correlation less than the previous years. In the last year it can be seen that the GCC fund has negative correlation which indicates that if other funds move in a direction then it will move in the opposite direction. Formula to Calculate:- The correlation has been calculated on the basis of arithmetic mean, geometric mean and standard deviation of the total five years’ return of the five funds. The formula to calculate correlation is simple as it can eb done by using excel, there is an option called data analysis. Choose that option and then click on correlation and then give the ranges. Answer Part 2. Equally weighted portfolio of the five mutual funds can be constructed with the securities which have weight equal to the funds over five years. Equally weighted securities can be chosen from the similar types of funds. Thus the arithmetic mean, geometric mean and standard deviation of return for the five fund portfolio will be calculated on the total return of the five funds over five years-   Five Equal Weighted Fund Portfolio Arithmetic Mean 2.2448 Geometric Mean 1.4587 Standard Deviation 1.0218 The arithmetic mean, geometric mean and standard deviation of the five equally weighted portfolio have been calculated on the total returns of the five funds over five years. Formula to Calculate To calculate the arithmetic mean we have used the formula =average (cell range) in excel. The geometric mean has been calculated as = geomean(cell range) and standard deviation can be calculated as = stdev(cell range). Answer Part 3. The Sharpe measure of return of the funds over five years and the equally weighted portfolio can be derived by subtracting the rate of risk free securities from the expected return of the portfolio and dividing that by the standard deviation of the portfolio. Here five funds will have five different Sharpe ratio based on their expected portfolio return, standard deviation of the portfolio and the risk free rate prevailing in the market. Treynor Measure The Treynor Measure of the five funds can be calculated by subtracting the average return of the risk free rate from the average portfolio return and dividing that by the beta of the portfolio.   Treynor Measure Average return Average return of risk free rate beta GCC -0.3431 -21.64% 8.90% 0.89 British Stock 2.1381 196.99% 6.70% 0.89 GCC Trading Equity 2.3247 212.60% 5.70% 0.89 US Trading Equity 1.5702 149.55% 9.80% 0.89 Europe Trading Equity 0.8908 84.88% 5.60% 0.89 Formula to Calculate Treynor measure has been calculated by calculating the average of annual return of five years for each fund which is written at the column average return. Risk free has been collected and written in the next column. Beta has been assumed as 0.89 which is less than 1 as the funds have average risk. The formula for Treynor measure = (Average return - Average return of risk free rate)/beta. Rankings of the fund According to Sharpe and Treynor measure, GCC Trading equity funds ranks in the first position among the five funds and five fund portfolios. After that British stock funds ranks in the second position. US trading equity fund ranks in third position and after that Europe trading equity funds and lastly GCC stock funds is last in the ranking of the funds as it has earned negative return according to Treynor measure. . References Strong, R. (2008). Portfolio Construction, Management, and Protection. USA:Cengage Learning. Tadawul.com, (2014). GCC Banks and Financial Institutions. Retrieved from: http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3g_A-ewIE8TIwMDDw9nA09vE3cXI3c3QwMDA6B8JJK8e0CYqYGniU-wUXCAl7GBpxEB3cGpefp-Hvm5qfqR-lHmSOb4BVgCVZq5enq6BBm4O5vqh-hHOgEVReJVVJAbUe6Xlq0IALo-Z-M!/dl2/d1/L3dJMjIydyEhL0lCaEFDRW9BREFiS0FBd0NLZ0FNREtvQURBeHFBQXdBNmdBTUFCb0FEQUEhL1lJNXcvN19OMENWUkk0MjBHTlA5MElLNkVJSURSMEdDNQ!!/?ChangeManger=0&MutualFundType=0&SelectedTab=2&SelectedFund=1&MutualFundLogo=&MutualFundMangersDrop=6&MutualFundFundsDrop=014004++++++++++++++++++. Tadawul.com, (2014). Alahli GCC Trading Equity Fund. Retrieved from: http://www.tadawul.com.sa/wps/portal/!ut/p/c1/hYyxDoIwFEW_xS941woY56LtU9M01BDaxXQAQ5TiYPT37cikueM551KgvBTf4y2-xjnFB3UUqquBbBsuBKC1BJ8KVQt1WAPI3C-4sm0JLs5OOHvcgMWf2vWJjJ6nnjyF7eLH2F02qz1z3UDJki7kZZb8T-k5dR8z3FdfVLpeQg!!/dl2/d1/L3dJMjIydyEhL0lCaEFDRW9BREFiS0FBd0NLZ0FNREtvQURBeHFBQXdBNmdBTUFCb0FEQUEhL1lJNXcvN19OMENWUkk0MjBHTlA5MElLNkVJSURSMEdDNQ!!/?ChangeManger=0&MutualFundType=0&SelectedTab=4&SelectedFund=9&MutualFundLogo=&MutualFundMangersDrop=6&MutualFundFundsDrop=011076++++++++++++++++++ Tadawul.com, (2014). Alahli US Trading Equity Fund. Retrieved from: http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3g_A-ewIE8TIwMDDw9nA09vE3cXI3c3QwMDA6B8JJK8e0CYqYGniU-wUXCAl7GBpxEB3cGpefp-Hvm5qfqR-lHmSOb4BVgCVZq5enq6BBm4O5vqh-hHugMVReJVVJAbUe6Xlq0IAC-jK6s!/dl2/d1/L3dJMjIyMkEhL0lKaEFDRW9BREE3S0FBd0NLZ0FNREtvQURBeHFBQXdBNmdBTUFCb0FEQWlhQUF3QS9ZSTV3LzdfTjBDVlJJNDIwR05QOTBJSzZFSUlEUjBHQzU!/?ChangeManger=0&MutualFundType=0&SelectedTab=2&MutualFundLogo=&SelectedFund=2&MutualFundMangersDrop=3&MutualFundFundsDrop=011017++++++++++++++++++&fundsToCompare= Tadawul.com, (2014). Alahli Europe Trading Equity Fund. Retrieved from: http://www.tadawul.com.sa/wps/portal/!ut/p/c1/hYyxDoIwFEW_xS941woY54LtU9M01BDaxXRAQ5TiYPT37cikueM551KgvBTf4y2-xjnFB_UUqouB7FouBKC1BB8LVQu1XwPI3C-4sl0JLk5OOHvYgMWf2g2JjJ6ngTyF7eLH2F02q4a5bqFkSWfyTZb8T-k59R9zva--sqwpMg!!/dl2/d1/L3dJMjIyMkEhL0lKaEFDRW9BREE3S0FBd0NLZ0FNREtvQURBeHFBQXdBNmdBTUFCb0FEQWlhQUF3QS9ZSTV3LzdfTjBDVlJJNDIwR05QOTBJSzZFSUlEUjBHQzU!/?ChangeManger=0&MutualFundType=0&SelectedTab=2&MutualFundLogo=&SelectedFund=2&MutualFundMangersDrop=4&MutualFundFundsDrop=011012++++++++++++++++++&fundsToCompare= Tadawul.com, (2014). British Stock Fund. Retrieved from: http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3g_A-ewIE8TIwMDDw9nA09vE3cXI3c3QwMDA6B8JJK8e0CYqYGniU-wUXCAl7GBpxEB3cGpefp-Hvm5qfqR-lHmSOb4BVgCVZq5enq6BBm4O5vqh-hHugAVReJVVJAbUe6Xlq0IAFwoEJM!/dl2/d1/L3dJMjIyMkEhL0lKaEFDRW9BREE3S0FBd0NLZ0FNREtvQURBeHFBQXdBNmdBTUFCb0FEQWlhQUF3QS9ZSTV3LzdfTjBDVlJJNDIwR05QOTBJSzZFSUlEUjBHQzU!/?ChangeManger=0&MutualFundType=0&SelectedTab=2&MutualFundLogo=&SelectedFund=4&MutualFundMangersDrop=4&MutualFundFundsDrop=001008++++++++++++++++++&fundsToCompare= Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Funds coursework report Example | Topics and Well Written Essays - 3250 words, n.d.)
Funds coursework report Example | Topics and Well Written Essays - 3250 words. https://studentshare.org/finance-accounting/1846086-funds-coursework-report
(Funds Coursework Report Example | Topics and Well Written Essays - 3250 Words)
Funds Coursework Report Example | Topics and Well Written Essays - 3250 Words. https://studentshare.org/finance-accounting/1846086-funds-coursework-report.
“Funds Coursework Report Example | Topics and Well Written Essays - 3250 Words”. https://studentshare.org/finance-accounting/1846086-funds-coursework-report.
  • Cited: 0 times

CHECK THESE SAMPLES OF Trading Equity and Stock Funds

Effect of the London Olympics on the Residents of East London

The essay "Effect of the London Olympics on the residents of East London" focuses on the critical analysis of the major positive and negative effects of the London Olympics on the residents of East London.... Olympic 2012 in London is going to be a major event in London.... ... ... ... There are many new developments done in London for making areas safe and secure....
13 Pages (3250 words) Essay

Studying in the UK: A Guide for International Students

Additionally, the coursework will highlight the sources of finance that are available to students.... Applying the above theory to this coursework discourse, we can also assert that students have an expectation of what studying in the UK institutions should offer them....
4 Pages (1000 words) Assignment

Has Gulf Area Less Exposure to Financial Crisis

The Last Financial Crisis 2007-2009 Has Many Implication On Different Markets , However There Are Some Arguments That The Gulf Area Has Less Exposure To This Crisis, Do You Agree Or Not And What The Impact ( If There Is Any) On Qatar' And Other GCC Financial Markets Abstract The research report intends to clearly identify the major influencing factors of the widely renowned financial crisis 2007-2009, which extensively affected the global economies irrespective of economically stabled nations....
12 Pages (3000 words) Research Paper

The Case against the Global Economy

The article posits a critique of Gross Domestic Product as a measure of progress for countries in general, and offers an alternative means of measuring economic progress that takes into consideration such factors as the environment and the impact of economic activities on the.... ... ... The criticism of GDP as the central measure of progress in an economy is that at heart this false measure leads to false conclusions about the economy and therefore also lead to falsely crafted policies that do not address true economic needs....
5 Pages (1250 words) Research Paper

Organization Description of Al-Ain

I worked for 200 hours as an assistant to Hameed Jasin in networking and 500 hours in trading and services.... The sessions involved creating proxies and identifying new potential clients for.... ... ... The aim of the sessions was to improve on my networking skills which I had learnt in class.... It was a practical setting where classwork was tested....
6 Pages (1500 words) Essay

What Is Your Critical Number

This research paper outlines the importance of knowing the critical number.... It demonstrates the role of critical number in business and its position a firm to exploit advantages and avoid threats in the business environment.... ... ... ... Many businessmen would attribute their company's long-term and sustainable growth to any number of perceived factors, from the desirability of their products to the creativity of their personnel....
16 Pages (4000 words) Research Paper

ICT Framework: Assessment and Target Setting

This report "ICT Framework: Assessment and Target Setting" discusses assessment that has always been at the heart of teaching and learning (QC 1993:1).... The terms formative and summative were first used in the context of curriculum evaluation, but they now have wide currency in the assessment....
8 Pages (2000 words) Report

Investigation of the Management and Finance of Samsung

The content of the report was done entirely by me following a survey of online literature.... Throughout the report, references are made to peer-reviewed journals, news articles, and Samsung's financial reports and news statements.... The content of the report was done entirely by me following a survey of online literature.... Throughout the report, references are made to peer-reviewed journals, news articles, and Samsung's financial reports and news statements....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us