Topic: Your topic is ‘PORTFOLIO CONSTRUCTION: Goals, Asset Allocation and Security Selection’.
You have newly been appointed Investment Manager for a major Australian Superannuation and Pension Fund. The Fund has grown to $A 200,000,000 in investible funds and the Trustees expect that the Fund will persist to grow steadily for years to come. Most of the members are in their working years or Accumulation phase; however the Trustees expect starting to pay account-based retirement pensions in a few years time.
The Fund has two parts:
a) A Conservative or Capital Stable part for risk-averse or low-risk profile investors-around 40% of the members.
b) A Balanced part for moderate risk-takers who are made to take computed (however not high) risks in the quest for above average returns – the remaining 60 percent of members.
You have been requested to propose:
a) A set of investment goals for each of the two parts of the Fund,
b) A strategic long-term percentage asset allocation mix for each of the two parts of the Fund, and
c) A portfolio of three preferred stocks or securities for each of asset classes nominated.
The given choices of asset classes are available and three stocks or securities must be nominated for each, even if you encompass a zero asset allocation to that asset class.
- Australian money market securities (or ‘Cash’)
- Australian fixed interest
- Australian shares or equities
- Australian property trusts (or real estate investment trusts)
- International fixed interest
- International shares
- International property
It is necessary that you describe fully the rationale or reasons for:
a) Your chosen goals for each section [(a) and (b)] of the Fund;
b) Your nominated asset allocation mix for each and every Fund part
c) Your chosen stocks or security selection for each and every asset class.
You must follow the given typing conventions:
- Times New Roman font (at minimum, 12 pitch)
- 1.5 line spacing
- Top, bottom, left and right margins to be at least 2.5 cms from the edge of the page; and
- A4 paper.
Use the Harvard referencing! See