Investments: Portfolio Management INV4801
INV4801 Assignment 02
Due Date: 17 September 2021
Unique Number: 705806
QUESTION 1
a) Using only the data provided, determine the style of the mutual fund. No calculations are
required.
The style of the mutual fund is a growth style. The portfolio’s P/E and P/B are above those of the
benchmark. EPS growth expectations are slightly above average support the inference that the
portfolio is growth oriented. Also, the sector breakdown suggests growth style as well,
traditionally growth-oriented sectors like health care and information technology are modestly
overweight.
b) Which manager has the best performance as measured by the information ratio?
Information Ratio:
IR = IC
Stephen Musimanga = 0.06
= 0.85
Victor Chidongo = 0.07
= 0.86
Based on the information given Victor Chidongo has the best performance as measured by the
Information ratio of 0.86.
INV4801 Assignment 02
Due Date: 17 September 2021
Unique Number: 705806
QUESTION 1
a) Using only the data provided, determine the style of the mutual fund. No calculations are
required.
The style of the mutual fund is a growth style. The portfolio’s P/E and P/B are above those of the
benchmark. EPS growth expectations are slightly above average support the inference that the
portfolio is growth oriented. Also, the sector breakdown suggests growth style as well,
traditionally growth-oriented sectors like health care and information technology are modestly
overweight.
b) Which manager has the best performance as measured by the information ratio?
Information Ratio:
IR = IC
Stephen Musimanga = 0.06
= 0.85
Victor Chidongo = 0.07
= 0.86
Based on the information given Victor Chidongo has the best performance as measured by the
Information ratio of 0.86.
