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IP1 AS3001 - Q3.b.iii

Discussion in 'Financial Planning Study Group' started by Christina.Hunt, 19th Apr, 2011.

  1. Christina.Hunt

    Christina.Hunt Member

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    Hi everyone,

    Question regarding - Q3.b.iii of the IP1 AS3001 assignment.

    I wanted to ask if anyone has completed this question and can shed some light on what 'performance drivers' they recommended that are specific to suncorp.

    Is this information available in the subject notes or does this need to be sourced externally?

    My assignment is due this Friday 22nd April so any advice would be greatly appreciated asap. I have emailed the Kaplan technical team but have yet to receive a reply.

    Thanks
    Christina
     
  2. builder2818

    builder2818 Well-Known Member

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    Go to section 9:1.6 in the text....all the required info is there on what you need to talk about. You will also need to go Suncorps website and under the shareholders section view their annual reports and link some of the relevant information in them to what the section of the notes I just mentioned is explaining to you.

    There's a heap of stuff you can talk about - eg earnings for the last year, their competitors, who the company is and what they do, their competitors. Talk about their management team especially their new CEO.

    You can talk about their share price and compare it to their competitors and how it sits technically and what YOU feel is a recommendation for the stock.

    Personally, I gave it a HOLD recommendation.
     
  3. Christina.Hunt

    Christina.Hunt Member

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    Thank you builder2818, your response has given me much needed direction.

    In addition, are you able to shed any light on Q3.c.iv regarding the sources of information to research a company? Any info would be greatly appreciated.

    Thanks again.
     
  4. builder2818

    builder2818 Well-Known Member

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    Briefly mention the various places you can source information from in regards to investing eg Financial papers, internet etc but then stress the importance of reading the PDS that accompanies that financial product and communicating to her financial adviser anything she isn't sure of in the PDS.
     
  5. Christina.Hunt

    Christina.Hunt Member

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    Thank you for your prompt assistance and clarification.

    My answer has already covered what you've mentioned.

    Just curious, if you are studying the Diploma in Financial Advice (Financial Planning), have you finished? How have you found the course?

    I unfortunately don't work in the finance industry as yet, however plan to do some work experience when I start the superannuation and retirement subject.

    Thanks again for all your help, greatly appreciated.
     
  6. builder2818

    builder2818 Well-Known Member

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    I am doing the diploma of Financial Services (Financial Planning) through Kaplan. Currently I have completed FFP and Risk Management and will complete my exam for IP1 next week. I passed the assignment about 3-4 weeks ago.

    I have yet to do Super and Retirement Planning. I recently got a job with a large funds management company and it's my first job in the finance industry. I actually couldn't care less if I ever became a financial planner, I have now set my sights on bigger goals and will start uni next year part time in order to achieve those goals.

    If you can get into the finance industry, it will greatly improve your studies in the course as you will find many of your co workers will either have finished or finishing the same course as you.
     
  7. Christina.Hunt

    Christina.Hunt Member

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    I am also studying the diploma and completed FFP and RM as well. My IP1 assignment is due tomorrow and my exam is next Friday.
    I'm not entirely sure if I want to be a financial planner either but once I'm finished this I'll look into part time uni options.
    I really enjoy finance and the passion is definitely there, so looking forward to working in the sector.

    All the best with your last subject and goals. May talk to you soon if I need any further clarification on IP1 :)

    Thanks!
     
  8. Christina.Hunt

    Christina.Hunt Member

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    Hi builder2818,
    I'm just finalising question 5. Can you please shed light on how you addressed the 4 strategies mentioned, i.e. debt mgt, super, non-super and derivatives. Is kaplan asking us to allocate a dollar amout against each of those categories and put into table format? If so, I have started to do this.
    Two of mine will be blank as I'm not recommending derivatives and also cannot recommend super strategies as part of the background information. Is that correct?

    I understand there isn't really any wrong answers in this section but if you could point me in the right direction it would be greatly appreciated.

    Thanks again
     
  9. builder2818

    builder2818 Well-Known Member

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    I did as they suggested and compiled a table outlining how I would distribute the money amongst the investment choices. I recommended paying off the mortgage first, split money up against some different asset class managed funds, additional share purchases for her portfolio and spare cash left in a interest bearing account for her future expenditure needs.

    I didn't recommend derivatives strategies either but did mention that she should switch to a different investment style within her current super fund that is more in line with her risk profile and age to retirement.

    I also talked about her investment property and how she could be getting better returns from this - but this was just from my own generic knowledge on the subject of property investing.
     
  10. Christina.Hunt

    Christina.Hunt Member

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    Thanks for the clarification, greatly appreciated.

    Sorry, just one last question. With regards to the forecast investment returns did you develop a table and use the funds calculator from fido.gov.au site? In the FFP assignment we had to provide cash flow projections. Do we need to do something similar or just provide an overall return at the end of each investment? For example the return at the end of a 10 year bond...

    Thanks
     
  11. Christina.Hunt

    Christina.Hunt Member

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    Did you use real managed investment companies and their investments or did you make it up?

    Thanks
     
  12. builder2818

    builder2818 Well-Known Member

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    I used real managed investment companies and just used their historical data and graphical representations provided in the funds profiles I chosen to indicate the projected earnings growth she could expect to achieve.

    If you go to Colonial's website there are more managed funds there then you can poke a stick at.
     
  13. Christina.Hunt

    Christina.Hunt Member

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    Thanks again for the assistance.
     
  14. Christina.Hunt

    Christina.Hunt Member

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    Hi builder2818,
    Just wondering, is there any particular reason you didn't recommended a 10 year investment bond for Grace?
     
  15. Christina.Hunt

    Christina.Hunt Member

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    Hi,
    Sorry to ask so many questions, but I just wanted to clarify regarding the forecast investment returns. Are we required to provide an estimated return at the 'end' of the investment i.e. $130,000 or the 'rate of return' i.e. 8.5% p.a. ???

    Thanks for your help.
     
  16. builder2818

    builder2818 Well-Known Member

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    I didn't worry about that. I just mentioned that the forecasted returns would help her achieve her goals and give her the available funds to meet her future expenditure needs whilst also still have money working for in the longer term.

    Sorry, I forgot to mention that I did recommend her an investment bond and explained the 10 year 125% BS that goes along with it. They seem to mention that in all their course notes so I thought I would put it in - I wouldn't personally invest my money in anything I wrote down though.....good we aren't getting marked on that though :)
     
  17. Christina.Hunt

    Christina.Hunt Member

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    I wouldn't invest in some of my strategies either :) lucky we aren't being marked on that.