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IP1 -Case Study

Discussion in 'Financial Planning Study Group' started by L'homme, 10th Feb, 2010.

  1. L'homme

    L'homme Active Member

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    Hi, with regard to forumulating suitable strategies and recommending suitable types of products, I really do not know where to start. Would appreciate input from anyone!
     
  2. L'homme

    L'homme Active Member

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    Hi, is it possible to recommend just one managed fund to the couple? Can only one managed fund achieve diversification? I think I will recommend the couple sell their shares and buy into one diversified fund and be done with it. Can I do that?
     
  3. CJ. Wentworth

    CJ. Wentworth Well-Known Member

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    I'm sure so long as you can justify it with solid reasoning you can recommend that. Will it achieve all of their goals within their risk profile, timeframe, etc.
     
  4. L'homme

    L'homme Active Member

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    Hi, CJ, thanks for repaying
    I assume you passed the assignment? Could you help me on:
    regarding the $418000 direct property which the couple do not want to sell, did you advice them to sell anyway since there's too much exposure to one area of investment and I am at my wit's end to try to figure out alternative ways to construct a diversified portfolio(60% growth+40% income is my goal) with the damned property in it. What did you do with that chunk of investment that's already there?
     
  5. CJ. Wentworth

    CJ. Wentworth Well-Known Member

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    No I did not end up recommending they sell. In the end the managed funds I recommended for them held very little/no property.

    I made sure to make a note saying that if they were willing to sell their IP then I would have recommended a different strategy.
     
  6. L'homme

    L'homme Active Member

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    Hi, CJ:
    If they didn't sell, their overall portfolio will have a large portion of property assets, I think about 50%, how did you come up with a sensible investment mix that could compliment this? Could you tell me how much you put into growth and how much into income? I would have assumed their property takes up too much space in their growth assets that there's barely room for stocks etc.
    Thanks again
     
  7. netcentre4

    netcentre4 Member

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    Hi L'Homme and CJ,

    I am also doing investment planning assignment. Just wondering for question 6 in relation to woolworth shares Identify and explain other general and company-specific
    factors that may be relevant to making an investment decision about this stock. You
    must discuss some performance drivers that are specific to Woolworths.

    Could you please provide me with some help about what general and company specific factors and also performance drivers? Do they want you to talk about P/E ratio or their EPS Shares. I am not sure.

    Thanks
    netcentre4
     
  8. L'homme

    L'homme Active Member

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    General factors are macro factors like int rates, economic downturn etc, specific factors in terms of industry in which WOW operates, competitors, growth drivers, usually I use SWOT to come up with all the bullcrap, I don't believe our markers care about PE and so on, of course there's no harm in talking in detail.
     
  9. L'homme

    L'homme Active Member

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    In retail performence drivers are obvious: Sales and Cost of Goods sold
     
  10. netcentre4

    netcentre4 Member

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    Thanks L'Homme for the tips and help. Now I can try to tackle the question.