Requirements:
In answering the questions, marks will be awarded for:
Clarity of discussion and analysis;
Correctness of content materials;
Logical flow of the discussion involved;
Quality of communication, e.g. correct spelling, grammar and sentence structure, proper page numbers and correct referencing used.
This assignment must not be done in teams which involve sharing of information. Students are required to work independently.
This assignment must be fully typed, one sided with double-line spacing using 12 font Arial. Any references and quotations taken from other authors must be properly acknowledged.
The skills and capabilities assessed in this assessment are:
Research skills
Critical thinking skills
Information technology capability
Application of knowledge
Problem solving skills
Students are expected to use APA referencing.
Words: Approx 2000 - 3000 words
Required:
Foundry Asset Management Limited ["Foundry"] is a New Zealand-owned investment and funds management company. Specialising in the management of investment portfolios for investors, who are seeking absolute or positive returns for their investments over time.
Foundry’s primary objective on behalf of clients is “preservation of capital”. With this focus we seek to deliver our investors both sustainable and attractive long term returns.
Foundry aims to articulate and deliver a clear and concise investment strategy based around several simple concepts:
• Approach all investments with an innate sense of caution, and focus on the underlying “margin of safety”;
• Security in the ownership of the underlying investment is equally paramount.
Foundry, utilising its extensive global contacts and research capabilities, takes these simple concepts and applies them to provide clients access to leading global investment specialists, that in many cases have never been available to New Zealand investors before, culminating in portfolio’s that are truly world class and at the same time, tax and cost effective.
Furthermore unlike many investment managers, Foundry believes, each of the advisers and principals, are obligated to invest alongside clients on exactly the same terms, conditions, and fees, using the same investment specialists. Foundry also favours those global investment specialists who have invested a substantial portion of their own personal wealth in their Fund/s alongside their investors.
Foundry is managing three investment portfolio:
Foundry Value Cautious Portfolio
Foundry Value Blend Portfolio, and,
Foundry Value Growth Portfolio
Foundry Value Cautious Portfolio
Key Portfolio Facts
Portfolio Inception: 1 October 2010
Portfolios Rebalanced: Twice Annually
Portfolio Updates: Quarterly
Investment Horizon: 5+ years
Minimum Investment: NZ$ 50,000
Total Management Fee: 1.35% per annum* + GST (includes all custody charges)
Custodian: ASB [Aegis]
* For investments + NZ$2.5mln, the incremental fee is 0.675% per annum + GST.
The Foundry Value Cautious Portfolio is typically recommended for investors seeking preservation of capital and a reliable income stream with an absolute return focus over time.
The portfolio aims to achieve this by investing in asset classes that include fixed income securities, global shares, precious metals and cash. The Value Cautious Portfolio is constructed utilising Foundry’s flexible yet disciplined approach to asset allocation and investment manager selection.
Foundry Value Blend Portfolio
Key Portfolio Facts
Portfolio Inception: 1 October 2010
Portfolios Rebalanced: Twice Annually
Portfolio Updates: Quarterly
Investment Horizon: 5+ years
Minimum Investment: NZ$ 50,000
Total Management Fee: 1.35% per annum* + GST (includes all custody charges)
Custodian: ASB [Aegis]
* For investments + NZ$2.5mln, the incremental fee is 0.675% per annum + GST.
The Foundry Value Blend Portfolio is typically recommended for investors who are seeking capital growth and a moderate level of income with an absolute return bias over time. The portfolio aims to achieve this by investing in asset classes that include global shares, fixed income securities, precious metals and cash.
The Value Blend Portfolio is constructed utilising Foundry’s flexible yet disciplined approach to asset allocation and investment manager selection.
Foundry Value Growth Portfolio
Key Portfolio Facts
Portfolio Inception: 1 October 2010
Portfolios Rebalanced: Twice Annually
Portfolio Updates: Quarterly
Investment Horizon: 5+ years
Minimum Investment: NZ$ 50,000
Total Management Fee: 1.35% per annum* + GST (includes all custody charges)
Custodian: ASB [Aegis]
* For investments + NZ$2.5mln, the incremental fee is 0.675% per annum + GST.
The Foundry Value Growth Portfolio is typically recommended for investors who are seeking growth with an absolute return focus over time. The portfolio aims to achieve this by investing in a number of ‘value style’ investment funds across the globe. The investment managers of these funds typically focus on companies with solid fundamentals or attractive investment value, giving the portfolio a selection of highly diversified investments with a strong “margin of safety” focus.
The Value Growth Portfolio is constructed utilising Foundry’s flexible yet disciplined approach to asset allocation and investment manager selection.
You are a CFO and research committee member of Foundry Asset Management Limited. Next month, you will attend the Investment Committee Meeting; you are requested to write a report to committee board.
In your report, you should give your opinions, suggestions and comments including:
1, the global and NZ economy
2, Australian Economy
3, NZ currency strategy
4, Poor Elvation Capital Global Fund of Funds
5, other committee members would like to use Pengana Australian Equities Fund and Magellan Global Fund to replace Elvation Capital Global fund of funds, what are your opinions?
6. Any recommendations? Or suggestions?