[SOLVED] N1596 ALTERNATIVE INVESTMENT FUNDS SQL

N1596

ALTERNATIVE INVESTMENT FUNDS

Assessment Period: December 2024 (A1)

Please answer, after carrying out research on suitable investment strategies, investment funds, investment trusts or ETFs, the questions below. Your answers should be brief and provide a clear recommendation for the  best investment strategy, fund, investment trust or ETF, with a short explanation for your choice. Before you make your recommendation, please:

(a)  consider the current macroeconomic environment across the world

(b)  think about which region or countries are likely to dowell in the next 5 to 10 years; and

(c)  consider major investment themes that were discussed in the module.

Please also read “Further guidance on writing your report” (see below) before you write your answers. You must answer all questions.

PART A (30 MARKS)

1. Real Estate (8 marks)

Identify three suitable investment products (an investment fund, trust or ETF) that invest in real estate and recommend one product that you think would be the best choice.

The funds, or investment trusts or ETFs should be listed in London or should be accessible by a UK investor, and should relate to supertrends we explored. The reasons for your recommendation should be explained and include a comparison between the funds or investment trusts or ETFs you identified.

2. Infrastructure (8 marks)

Identify three suitable investment products (which could bean investment fund, an investment trust or ETF) that invest in infrastructure and recommend one product that you think would be the best choice. This can include infrastructure debt, infrastructure for technology e.g. telecommunication towers, broadband infrastructure etc as well as infrastructure for health, defence, transport etc.

The funds, or investment trusts or ETFs should be listed in London or should be accessible by a UK investor. The reasons for your recommendation should be explained and could include, for example, cost, fees, performance, industries or regions or types of infrastructure in which the fund invests etc. Your reasons should include a comparison between funds or investment trusts or ETFs you identified.

Before answering this question, you might find it helpful to listen to Goldman Sachs’s podcast on Infrastructure    Investing    (available    at https://www.goldmansachs.com/insights/goldman-sachs- exchanges/02-29-24-infrastructure-teresa-mattamouros. A transcript of the podcast is available at https://www.goldmansachs.com/pdfs/insights/podcasts/episodes/02-29-24-infrastructure-teresa- mattamourous/transcript.pdfand is also available on Canvas)

3. Alternative Investment strategies (8 marks)

PSP, one of Canada’s largest pension funds (website investpsp.com) with around CAD250bn in assets has   a   portfolio   of   investments   across   alternatives   including   15%   in   private   equity,   13%   in infrastructure, 10% in real estate, 9% in credit investments and 5% in natural resources.. Which two of these asset classes do you consider would perform. the best irrespective of market conditions, and why? Please explain in detail the reasons for your choices.

4. Shipping, Aviation or Transportation (6 marks)

Identify one investment product (an investment fund, trust or ETF) that invests in shipping, aviation or other transportation, keeping in mind the super trends we explored. Give reasons for your choice.

PART B (30 MARKS)

5. Thematic ETF (30 marks)

Identify three thematic ETFs that you think offer the most promising opportunities for investors. The ETFs should be listed in London or be accessible by a UK investor. Give reasons for your choice.

Before answering this question, you might find it helpful to review thematic ETF related publications of banks and investment managers, including:

•    Legal        &        General https://www.lgim.com/en-fi/adviser-wealth/capabilities/our-etf- range/thematics/,

•    BlackRockhttps://www.ishares.com/uk/professional/en/themes/thematic-investing,

•    Deutsche  Bank https://etf.dws.com/en-gb/knowledge/focus-topics/future-trends-investing- in-xtrackers-thematic-etfs/,

•    State  Street Global Advisers https://www.ssga.com/us/en/intermediary/capabilities/invest- thematically-in-new-economy-etfsand

•    Global X, the investment unit of Mirae Asset,a South Korean asset manager which has several investment themes-based ETFshttps://www.globalxetfs.com/thematic-growth-etfs/

PART C (40 MARKS)

6. Supertrend and Reflective Analysis (40 marks)

Identify one supertrend or megatrend that you think will be the most promising to follow for the next 20 to 40 years. Explain the reasons for your choice, in detail, and identify two products (a fund, an investment trust or ETF) which allows an investor to invest in your chosen trend. You cannot select a trend that is covered by another question in this paper. This question allows you to demonstrate your broader research and reading in the investment sector.

Please also explain how your understanding of investment choices has altered over the course of the workshops, what process you now follow to make investment choices, what documents you review, as well as what surprised you the most about, or was the most interesting aspect about, the topics that we discussed during the module. This question allows you to reflect on how your understanding of and assessment of investment structures has developed over the course of the module.

Further guidance on writing your report

Word count: Maximum of 2000 words. This is a maximum. Your report can be shorter.

For Q1, Q2, Q3 and Q4 you should aim to answer each question with about 250 words. For Q5 your answer should be longer and more detailed, around 350 words while for Q6 around 650 words are suggested. These are suggestions – as long as the overall is within 2000 words, it is acceptable.

Graphs/charts: You do not need to include any graphs, diagrams or charts of performance.

Figures/tables: You can include a summary table of fees or performance for your recommended funds or investment products. Any figures or tables will not be included in the word count.

Performance: You must include performance details/returns for the funds that you discuss in Q1-3.

Style. of report: Be brief. The 2000 word limit is a maximum. Your report can be much shorter. For Q1, Q2 and Q3 please answer in the format of the table below (using the example of Q1). For Q4, Q5 and Q6 there is no need for a table; a paragraph for Q4 will be sufficient. However, for Q5 and Q6, a more detailed answer will be expected, with Q6 being the longest answer.

Q1 Strategies

Bibliography/References: Please list the resources/websites you used to select your choices. This does not need to be on a question-by-question basis. Your final page can simply list resources you referred to.