FIN3IPM - Investment And Portfolio Management Assignment

Assignment Task

You currently work for an individual client adviser for Bell Potter Securities, a leading Australian stockbroking and investment advisory firm, which provides investment advice, share trading and wealth management services. These clients pay full-service advisory and commission fees to your firm in return for the provision of initial investment planning and evaluation services, ongoing investment and related advice and the development and management of investment strategies and portfolios on their behalf. You have just been assigned a new client to represent. The client's details are as follows.

Name of client: Tricia McMillan

• She is about to retire from a long career in the hospitality industry and will receive a superannuation pay out of $500,000 in cash. She would like you to use this money to set up
  an investment fund on her behalf in order to fund her retirement.
• She describes herself as an aggressive investor, happy to take on risk if the return is
  proportional to the risk.
• She is in good health and expects to have a long retirement. She is strongly supportive of women and believes that companies are run better if women are represented on the Board of Directors.

The client doesn't wish to be exposed to the risks and transaction costs involved in investing directly in stocks listed on foreign stock exchanges, or in any assets other than stocks and exchange-traded funds (ETFs) listed on the ASX. However, there are a large number of ETFS which provide exposure to foreign stocks, domestic stocks, bonds, commodities, currencies and many other assets, and the client is willing to consider investing in any ETFs you would like to put forward.

There is an Assignment Data File on the LMS which provides information about:

• A selection of 75 large Australian listed stocks.
• A selection of 120 ASX-listed ETFs.

When making the asset allocation decision for your portfolio proposal, the portfolio can only include:

• Australian listed stocks as shown in the Assignment Data File.
• ETFs listed in the Assignment Data File.
• Note that you must purchase a whole number of shares or ETF units.
• Cash - we will assume an interest rate equal to the dally 1-month Bank Bill Swap Rate. This was
  4.3% on 19 April. This is the interest rate that will be used in calculating the return on your portfolio in Part 2 of the assignment.
• Bitcoin - the price of ONE Bitcoin on 19 April was A$99,491.30. If you wish to speculate by purchasing Bitcoin you don't need to purchase a whole number of Bitcoins. Simply allocate a certain dollar amount and assume you can buy in fractional amounts.

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