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Anyone doing AS3002 Investment Planning? HELP!!! :(

Discussion in 'Financial Planning Study Group' started by Sarah_Kate24, 14th Sep, 2011.

  1. Sarah_Kate24

    Sarah_Kate24 New Member

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    Portland, Vic
    Anyone doing
    Investment Planning 1
    AS3002 Assignment>?

    Im about to send mine in and would like to look at a completed one to check if im on the right track - particularly with question 5.

    Cheers - Any help would be greatly appreciated!!
     
    Last edited by a moderator: 16th Sep, 2016
  2. wildgoose

    wildgoose Member

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    Hi Sarah, I'm stuck on question 5 too (completed all the others) as I'm not confident of how to recommend derivative strategies for Isabella. Do you think we are expected to make specific recommendations such as buy 200 call options on S&P 200 at 3500 for December, or should we make a broad recommendation such as - use a derivative to fix a price on an asset that I recommend she get into?
    I think I have the rest of Q5 mapped out in my head after having completed her risk profile, asset allocation, and cash flow forecast.
    Any feedback appreciated.
     
  3. kwakker

    kwakker Active Member

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    wildgoose

    I think we're supposed to as specific recommendations as you suggested will the call options, however I think we're supposed to make more general recommednations such as investing in managed funds with OnePath and choosing the appropriate fund that invest inline with her risk tolerance level.

    In regards to Question 3 b part iii, what was the general and company-specific factors that you put through?

    I have seen other discussions saying to go onto the Suncorps website or check out the recommendations from morningstar or other companies. is this what you did?

    I am still slowly working my way through the assignment. In regards to her cashflow, I've got a figure that is significantly lower than her estimated surplus cash to invest with. Did you get something similar?
     
  4. wildgoose

    wildgoose Member

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    Hi Kwakker,
    Thanks for the feedback. I'm still unsure about recommending derivatives as I don't believe that Isabella would have the expertise to use them for hedging her current portfolio, the managed fund products I have chosen don't have ETO available and I don't think using futures would be a good way to get into the managed funds.
    In relation to 3biii I talked about gearing, management ability, and core competancies. Suncorp seems to have rebounded very well from the massive hit they took in their insurance business as a result of all the natural disasters from 2009-2011. I actually made two recommendations for the shares, one based on the fair share price and one based on company specific factors.
    In regards to Isabella's cash flow, I have a positive net cash flow around $28,000, using 2011-2012 tax tables including the flood levy. If you want to send an excel of your workings I can point out where you may have missed something.
     
  5. kwakker

    kwakker Active Member

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    I don't think I'll be recommended any derivatives, options or futures for Isabelle to invest in as I believe these are beyond her comprhension. Perhaps make a comment about looking into them in the future.

    I will mostly be focusing on managed funds, and just investing in line with her risk profile.

    Thanks for your help with 3bii, I thought about mentioning the recent natural disasters and how they may have had an impact on the share price.

    I have reworked my numbers and gotten approx $26,000 surplus cashflow so am getting close to your figure.
     
  6. shawti

    shawti Member

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    Can anyone help me with this? I am doing the IP1 AS3002...

    Q3 c ii) Explain whether, based on your calculations, this IPO has been priced correctly.

    I am unsure as to how to tell if it has or hasnt been priced correctly. Can someone tell me where in the text i would find this information?

    thanks,
     
  7. wildgoose

    wildgoose Member

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    Module 9, pages 3,4,5 and 6
     
  8. shawti

    shawti Member

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    Thanks wildgoose. I dont know how I missed that!
    For this particular question, are we meant to demonstrate our answer by comparing the issue price to other companies in the same industry?
    Also, did everyone else get $4.17 as the issue price? Or have i used the wrong calculation?
     
  9. wildgoose

    wildgoose Member

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    Yes, everybody else got $4.17 and you only need to compare the issue price of $4.17 to the offer price of $3 to draw your own conclusions. When making your recommendation I suggest that you go back to Isabella's invetment goals...
     
  10. cammmm

    cammmm New Member

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    I have submitted first attempt. Failed Questions 3, 5, and 6. My email Would appreciate help in this.
    My answer for Q3 ii) PV and NPV calculations
    PV = PMT + PMT / (1+ i)^n + PMT / (1+ i)^n + PMT / (1 + i)^n
    PV = 20665 + 21307 / (1.075)^1 + 21862 / (1.075)^2 + 575000 / (1.075)^3
    PV = 20665 + 19820.46512 + 18917.90157 + 462852.3275
    PV = $522,256
    NPV = Deduct the original investment of $480,000
    NPV = $522,256 – $480,000
    NPV = $42,256
    Correct formula but timing is incorrect.
    Im not sure where Ive gone wrong? Anyone got this sorted?
     
    Last edited by a moderator: 16th Sep, 2016
  11. trev11

    trev11 New Member

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    Isabella assignment IP13002.

    Hi all,

    I too am stuck on this assignment

    Can anyone lend a hand and pm me a competent grade assignment with the calcs etc so I can cross check to see if I'm on the right path?

    Any assistance would be very much apreciated. It's the Isabella assignment IP13002.

    I Have completed FFP & RM, would be glad to assist.

    Thanks in advance!
     
  12. Justme

    Justme New Member

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    Hi all, I am new to Invested. I two am having lots of trouble with the Investment Planning 1 (AS2003) assignment, can anyone help???
     
  13. Steanie

    Steanie Member

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    Hey, where is the book can i find how to work out the IPO?