FPC008 : Investment Advice Assessment

Assignment Details

This assignment covers Topics 3 to 7 and accounts for 35% of your final grade . There is one section , and you are required to address all criteria. Marks will be awarded for referencing and presentation , and your overall mark will be rounded to the nearest whole number 

Document Requirements

You are expected to produce a report outlining your recommendations , to be submitted as a Word or PDF document . This report is not a Statement of Advice (SOA) , but a comparative analysis of potential investments the client might consider. Assessors are looking for high-level, detailed investment research as would be applied in an SOA, though compliance aspects are not being tested.

Assignment Structure

Use of Software

You may use financial planning software to assist in modelling strategic options and preparing the report, provided the content is personalised, clear, concise, and effective , and follows the structural guidelines of the report. The report must be formatted professionally for client presentation.

If software is used, include in the reference list: software provider name, version number, licensee name, and license number .

Advice and Recommendations

All advice and recommendations must be in your own words . Reference and cite all sources in the text and provide a reference list at the end of the assignment.

Mark Allocations

Mark allocations are noted in the Criteria-Based Marking Guide (CBMG) and indicate the relative importance of each section. Full workings must be shown in the text; appendices will not be read . All assumptions used must be clearly stated.

Independent Research

Some questions require independent research beyond the provided materials. Research must be:

• From academically credible sources

• Analysed and understood to support reasoned conclusions

• Used appropriately to directly support your recommendations

Where significant research is required, this will be clearly indicated in the questions and CBMG.

Case Study – Jordan Riley

• Age: 40

• Marital status: Married, 2 children

• Income: $200,000 p.a. (executive)

• Situation: Recently inherited $500,000 in cash; limited knowledge of financial markets; does not want direct shares.

Scope of Advice

Jordan is seeking advice only for the $500,000 inheritance (not superannuation).

• Prefers 5 investment products , one per asset class:

  • Australian equities – 20% ($100,000)

  • International equities – 20% ($100,000)

  • Property – 20% ($100,000)

  • Alternative investments – 20% ($100,000)

  • Cash/fixed interest – 20% ($100,000)

• Goal: Maximise long-term returns

• Access: No need for funds within 3 years

• Preferences: Open to managed funds, ETFs, listed investment companies, and multi-sector offerings. Wants comparisons with at least one other product per asset class.

Investment Considerations

• Maximise long-term returns

• Reduce volatility if possible

• Open to active or passive strategies , unsure which is more suitable

• Interested in socially responsible or environmentally friendly funds , without sacrificing returns

Assignment Background

• Compare two products per asset class and recommend one product

• Include quantitative and qualitative analysis

• Demonstrate understanding of client’s goals, preferences, and potential biases

• Bank term deposits or at-call accounts may be recommended outside the approved product list

Report Layout

Executive Summary (5 marks, max 200 words)

Provide a short summary of:

• Client’s investment objectives

• Thought process

• Recommendations

Introduction (5 marks, max 150 words)

Explain the purpose of the report , scope of analysis, risk tolerance , and time horizon .

Product Information (25 marks, max 700 words)

• Provide information on five products across the asset classes

• Explain:

  • Product details

  • Reasons suitable for Jordan

  • Reasons not suitable for Jordan

• Each product worth 5 marks : 1 explanation, 2 suitable, 2 not suitable

Product Comparison and Selection (40 marks, max 800 words)

• Compare at least 2 products per asset class

• Include:

  • Performance

  • Asset allocation

  • Investment style

  • Fees

  • Philosophy

  • Manager and other relevant factors

• Recommend one product per asset class and justify why it meets Jordan’s goals

• Each comparison worth 4 marks, each recommendation discussion worth 4 marks

Conclusion (5 marks, max 150 words)

• Summarise arguments and recommendations

• Link conclusions to client’s objectives and expected outcomes

Topics Referenced

• Topic 3: Asset classes and investment markets

• Topic 4: Investment vehicles, platforms, and direct investments

• Topic 5: Portfolio construction techniques

• Topic 6: Fund manager styles and strategies

• Topic 7: Fund manager selection

Consistent referencing is required .

Criteria-Based Marking Guide – Investment Analysis Report

Excellent: Clear, concise summaries, detailed product explanations, logical comparisons, justified recommendations, strong synthesis in conclusion.

Satisfactory: Adequate coverage, minor clarity issues, partial comparisons, recommendations explained but not fully justified.

Unsatisfactory: Poor structure, minimal explanation, little or no comparison, insufficient justification, weak or missing conclusion.

Brief Summary of Assessment Requirements

The assessment is an Investment Analysis Report covering Topics 3 to 7 and accounts for 35% of the final grade. Students are required to produce a professional report (Word or PDF) for the client Jordan Riley, who has inherited $500,000 and seeks investment advice for five asset classes: Australian equities, international equities, property, alternative investments, and cash/fixed interest.

The report is not a Statement of Advice (SOA) but a comparative analysis of potential investments. It must include:

• Executive Summary: Brief overview of client objectives, thought process, and recommendations (max 200 words, 5 marks)

• Introduction: Purpose, scope, risk tolerance, and time horizon (max 150 words, 5 marks)

• Product Information: Details of five products, suitability, and limitations for Jordan (max 700 words, 25 marks)

• Product Comparison and Selection: Compare at least two products per asset class, recommend one, justify selections with performance, fees, investment style, and manager considerations (max 800 words, 40 marks)

• Conclusion: Summarise recommendations and link to client’s objectives (max 150 words, 5 marks)

Other requirements include full calculations, independent research from credible sources, consistent referencing (Harvard recommended), and professional formatting. Marks are allocated according to the Criteria-Based Marking Guide (CBMG).

Academic Mentor Approach and Step-by-Step Guidance

Step 1: Understanding Assessment Requirements

The mentor first guided the student to carefully read the case study and assignment brief, noting the key client objectives, constraints, and preferences. Emphasis was placed on:

• Understanding the client’s risk tolerance and investment horizon

• Recognising the five asset classes to be addressed

• Identifying the assessment structure and mark allocations

This step ensured the student had a clear roadmap before starting the research and writing process.

Step 2: Conducting Independent Research

The student was instructed to research at least two investment products per asset class, focusing on credible sources such as financial reports, fund manager websites, and investment platforms. The mentor highlighted:

• Collecting quantitative data: historical performance, fees, asset allocation

• Collecting qualitative data: investment philosophy, manager strategy, risk profile

• Ensuring research would support reasoned conclusions tailored to Jordan’s situation

This step helped the student develop analytical skills and reinforced the importance of evidence-based recommendations.

Step 3: Structuring the Report

The mentor guided the student to organise the report according to the required layout:

1. Executive Summary: Condense the client objectives and key recommendations.

2. Introduction: Clearly state the purpose, scope, and assumptions.

3. Product Information: Provide detailed explanations of each product, highlighting suitability and limitations.

4. Product Comparison and Selection: Use tables or descriptive comparisons to evaluate two products per asset class, then recommend one with justification.

5. Conclusion: Link recommendations back to client objectives and expected outcomes.

Guidance focused on clarity, professional formatting, and logical flow to ensure high marks for presentation.

Step 4: Analysis and Recommendations

The mentor supported the student in evaluating products quantitatively and qualitatively:

• Australian & International Equities: Compared returns, volatility, management style

• Property & Alternative Investments: Evaluated growth potential, liquidity, and diversification benefits

• Cash & Fixed Interest: Assessed safety, interest rates, and term options

The student learned to weigh pros and cons for each product, ensuring recommendations aligned with Jordan’s goal to maximise long-term returns while considering risk tolerance and socially responsible investing.

Step 5: Finalising the Report

The mentor advised on:

• Referencing: Using Harvard style consistently for all sources

• Presentation: Including headings, page numbers, and readable tables

• Word limits: Ensuring concise explanations without losing analytical depth

• Assumptions: Clearly stating any assumptions in investment calculations

This step ensured that the final submission met all assessment criteria, enhancing both content quality and presentation.

Outcome Achieved

By following this step-by-step process:

• The student produced a complete, professionally formatted report

• Recommendations for each asset class were justified and linked to the client’s objectives

• Analysis included quantitative and qualitative evaluation of at least two products per asset class

• The report adhered to word limits, referencing standards, and presentation guidelines

Learning Objectives Covered

The assessment and mentoring process helped the student achieve:

1. Understanding asset classes, investment vehicles, and portfolio construction techniques

2. Applying fund manager selection and investment strategy evaluation

3. Conducting independent research and critical analysis

4. Producing structured, professional financial reports

5. Enhancing decision-making and recommendation skills in a client context

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