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NORTH SOUTH UNIVERSITYSCHOOL OF BUSINESS, BBA Program

Course Title: Introduction to Financial Management

GROUP PROJECT

You have been assigned to manage the personal wealth of a high net-worth individual, Zahir HossainChowdhury. Your task is to manage a portfolio, which is composed of two components: an investmentcomponent and a savings component.

Mr. Chowdhury is a billionaire. He received a sizeable inheritance from his father, and then, through hisown business acumen, he turned this sizeable amount into a massive 1.6 billion Taka fortune, which heinvests in various projects around the country and the world. You have been entrusted to handle 1 (one)percent of your clients wealth. Mr. Chowdhury wants to start off small and see the returns for himself

before he invests more.

Mr. Chowdhury has also invested similar sums of money with other private wealth managers. Hewould like to see your portfolio beat the returns from the other managers. If the fund allocated to yougenerates satisfactory return, Mr. Chowdhury would give you the opportunity to manage a larger shareof his wealth.

Investment componentYou have invested 50% of the funds available to you in the NYSE. For the sake of simplicity, assume astable exchange rate of USD 1 = BDT 80 at all times. Start trading immediately. You have untilNovember 29 to make this money grow. While Mr. Chowdhury desires a high rate of return, histolerance for risk is considered low. Additionally, he is considering other asset managers (yourclassmates) and will be ranking each according to the success of their portfolio management.

Savings component You have decided to deposit the remaining 50% of the funds available in the bank/NBFI assigned to you.Which deposit instruments you pick is up to you. You can pick just one instrument, or you can choosefrom a combination of several instruments. Assume the funds are available for six years.

For this component of your assignment, you are required to collect the latest details of savingsinstruments for the assigned banks/non-bank financial institutions. A visit to any branch of the

banks/NBFIs is mandatory. Proof of visit is required. Bring back a visiting card of the person you spoketo in the organization and attach it in the appendix of your report. Your presentation slides shouldinclude at least one picture of you OUTSIDE one of the branches of each of the banks/NBFIs assigned to

your group.

Visit the branch and ask for brochures/printouts that detail all the savings instruments the firm offers.You must attach the brochures/printouts in the appendix of your report.

Using your knowledge of time value of money, calculate the final balance you would have after fiveyears for each of the savings instruments available in the bank/NBFI. Then, choose the instrument or mixof instruments you prefer, and calculate how much the fund would actually grow to under this scenario.

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Assignment submission:

You are required to write a report about your portfolio. The report should include details about theperformance of both the savings component and the investment component of the portfolio. For theinvestment component, mention your investment philosophy and investment strategy; also include theinitial positions for your portfolio and your allocations to each position. Which positions exceeded yourexpectations? What conditions caused this? Which positions underperformed for you? What factors

created the performance gap? You should mention why you chose to invest in certain companies andavoided some others (if any). For the savings component, mention the reasons for your choice of savingsinstruments. In your report, also mention the key things you learned from your experience.

Your report (not including the appendix) should be between 1,000 and 1,500 words in length. It should be typed in font size 12. Use the Times New Roman font. There should be a 1-inch margin on all sides,and you should use double-spacing for your report. The report should be laminated and spiral-bound.You should include a cover page with pertinent details (including your names, ID and section).

In the appendix, please include an activity report of your investments. Show all the calculations for thesavings components in the appendix. The visiting card of the person you spoke to during your visit of

the bank/NBFI should be included in the appendix as well. Finally, make sure you attach in theappendix all the brochures/printouts about the savings instruments offered by your assignedorganization.

You are required to submit the report at the beginning of class on Tuesday, December 3.

Grading:This is a group assignment. Each group will consist of no less than five and no more than six members.This condition will NOT be relaxed under any circumstance. You must submit the group informationform to me in class or by email (finance254@yahoo.com ) by Sunday, October 6. Failure to form a teamwill result in zero marks being awarded for the project.

The grading will be out of 20 (twenty) marks. The investment component will carry five marks, thesavings component will carry five marks and your typed submission will contribute the remaining tenmarks.

Assignment submission:You are required to submit the report at the beginning of class on Tuesday, December 3. You are alsorequired to email me the PowerPoint file for your presentation before class on Tuesday, December 3.Sendthe PowerPoint files by email to finance254@yahoo.com .

Late submissions will NOT be accepted.

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List of assigned banks/NBFIs

Name of bank/NBFI Group name

Bangladesh Krishi Bank, ICB Islamic Bank Ltd.,United Commercial Bank Limited, IDLC Finance LimitedThe City Bank Limited

Group 1

Janata Bank Limited, Social Islami Bank Ltd., Eastern Bank Limited,National Bank Limited, IPDC

Group 2

Pubali Bank Limited, EXIM Bank Limited, Southeast Bank Limited,Dhaka Bank Limited, National Credit & Commerce Bank Ltd

Group 3

Agrani Bank, Al-Arafah Islami Bank, BRAC Bank Limited, Jamuna Bank Ltd, Trust Bank Limited

Group 4

Sonali Bank Limited, Islami Bank Bangladesh Ltd., Prime Bank Ltd,One Bank Limited, Premier Bank Limited

Group 5

BASIC Bank Limited, Shahjalal Islami Bank Limited, Dutch-Bangla BankLimited, Mercantile Bank Limited, LankaBangla Finance Ltd.

Group 6

Rupali Bank Limited, Bank Al-Falah Limited, Standard Bank Limited,Standard Chartered Bank, AB Bank

Group 7

First Security Islami Bank Limited, Bank Asia Limited,The Hong Kong and Shanghai Banking Corporation Ltd.,Delta Brac Housing Finance Corporation Ltd. (DBH), Uttara Bank Ltd.

Group 8