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ASSESSMENT BRIEF 200265 Personal Asset Management Autumn 2021 Assessment: Case Study Assessment Weight: 25% Submission via vUWS Sunday 23rd May 2021 by 11:59pm If you have any questions about this assessment or the requirements please contact your lecturer/tutor: Penny Janson anson@westernsydney.edu.au Issued: February 2021 Case Study (25%) Submission Details Submit with an appropriate assignment cover sheet via the Turnitin link on vUWS. Sunday 23rd May 2021 by 11:59pm Task Objective The objective of the assignment is to develop an understanding of a client’s investment risk profile and implications of this for investment choice. The assignment requires researching, reasoning logically and presenting written work of an appropriate academic standard in a clear, concise and coherent manner suitable for presentation to a client. Task Requirement Students are required to read and analyse a case study for a potential client, Marina Costas. You are required to produce an “Investment Report” addressing the goals, objectives and issues raised in the case study provided. Your discussion paper should address the following key issues and requirements: Cover Page and Table of ContentsOutline the key goals and objectives for Marina that are included in the case studyPrepare a Personal Net Worth Statement for Marina’s current financial positionFor Marina’s CURRENT investment assets:Construct an asset allocation based on her current investmentsDiscuss how this allocation compares to her stated risk profileOutline any issues with her current investment holdings and portfolio asset allocationDiscuss investment opportunities available to Marina with respect to the $430,000 she will be receiving in late 2021 Using the additional $430,000 inheritance funds, construct a proposed asset allocation and prepare investment recommendations to give a portfolio which is line with her stated risk profile and investment objectives:The recommendations need only be for broad asset classes and an overall portfolio asset allocation. They do not need to be specific recommendations such as BUY 150 Rio Tinto (RIO) shares.Discuss how your recommendations are appropriate and will assist Marina to meet her needs, goals and objectivesDiscuss therecommended investment structures in which these assets in the portfolio should be held ** You do not need to produce a compliant Statement of Advice (SoA) document ** Suggested Report Structure & Requirements Your client requires that the investment report you prepare be understandable, useful and practical. Your completed investment report should be focussed on the key areas which will help your client make an informed decision about the investment recommendations given. Your report should not exceed a maximum length of 15 pages (12 font size, 1.5 line spacing). Your investment report should include appropriate yet judicious use of subheadings where required. Ensure all subheadings used are logical and relevant to the case study. Subheadings should appear in the table of contents. You can tailor the format of your report as you see fit to suit your client, however you should ensure it includes the following components (with maximum page lengths indicated): Report cover page (1 page)Table of contents (1 page)Brief overview of client situation and discussion of key goals and objectives (1 pages)Personal net worth statement and discussion (1 page)Current portfolio asset allocation and discussion (2 pages)Discussion of investment opportunities (2 pages)Discussion of recommendations and proposed portfolio and asset allocation(3-4 pages)Discussion of recommended investment structures for the portfolio (1 page)Other relevant discussion or information (1 page)Reference list to acknowledge all source material (not included in page length)Appendix if required (not included in page length) You should also use information contained in the grading rubric to ensure that you have addressed all the required elements of this assessment task. This is not a group assignment. Students are not to copy other student’s work or collude with other students in the production of the assignment. Any cases where this occurs may result in charges of academic misconduct. All source materials must be acknowledged. The use of financial planning software is prohibited Case Study Information Marina Costas has been referred to you by a mutual friend as she needs some assistance to sort out her investments and superannuation accounts. During your initial meeting, Marina provides you with the following information about her current personal situation and financial position. Marina turned 47 years old in June 2020. She separated from her husband of 13 years in 2016 with their divorce and property settlement being finalised in 2017. Marina is enjoying her new “single life” and has no family to support financially. She is also not looking for a serious relationship at this point in her life and wants to set things up to ensure she is financial independent. Although COVID has caused some issues with how she works, Marina’s employment is secure and she currently earns a good salary of $105,000 plus employer superannuation guarantee contributions working as a marketing manager. She owns and lives in a townhouse in Mount Druitt, which was bought when she separated from her husband. She purchased this property in 2016 for $290,000. Marina believes the property is worth approximately $460,000 today as one of the neighbours sold their unit in January for that price. There is currently no mortgage on this property and Marina takes great comfort knowing that in the worst-case scenario she owns her own home and will have a place to live. Marina has her personal contents insured with GIO, with cover in place for $55,000. The building is insured through the strata. Before he died 2 years ago, Marina’s father gave her his boat, which he said “was a great investment”. The last time Marina got the boat valued, she was told it was worth somewhere between $35,000 and $38,000. Although she rarely uses the boat she keeps it in memory of her late father who took her fishing often as a child. It costs her $250 a month in mooring fees and $3000 annually for maintenance. Marina is quite concerned about debt although she has a credit card, (limit $20,000), which she uses to pay all of her living expenses to take advantage of the frequent flyer points. She has an automatic debit set up to ensure this is paid off each month before having to pay any interest. Marina’s car is an 8 year old Toyota Corolla, which is insured comprehensively for $8,000. Marina would like to buy herself a new car and thinks there should be some bargains due to the current economic conditions. While she is not yet sure what sort of car she will buy, she does think she will need to spend about $40,000 in total. One of the main reasons that Marina is seeking advice from you is that her last surviving family member, her sister, recently passed away and as Marina was the sole beneficiary she will inherit substantial funds from her sister’s estate. Marina expects to be receiving $430,000 after all the estate expenses are accounted for and has been told the funds will be available in October or November 2021. Marina is not sure what to do with these funds when she gets them. She has been considering an investment property but is not sure if that is an appropriate investment option as she has read recently that property prices have been falling in Sydney. Marina keeps about $10,000 in her every day bank account so there is cash available if needed, as well as holding a further $15,000 in a 3 month term deposit with the Commonwealth Bank that she just lets rollover for another term each time it matures. The interest is paid to her normal bank account each maturity and the current term deposit has an interest rate of 0.65%pa. Since paying off the mortgage, Marina has used any spare funds from the divorce settlement and savings to build a share portfolio. Marina admits she knows very little about shares and has really only bought shares in companies she knows. She is adamant about avoiding shares in any business involved in gambling. The one piece of advice she did follow was provided by a workmate who told her to set up a CommSec account and buy ten (10) different shares to make sure she would have a diversified portfolio. Marina’s portfolio currently includes the following: 49 BHP Group (BHP)320 Commonwealth Bank (CBA)600 Qantas (QAN)560 AMP Ltd (AMP)90 QBE Insurance (QBE)40 Suncorp Group (SUN)600 Telstra (TLS)400 Macquarie Group (MQG)490 Woolworths (WOW)50 ANZ Bank (ANZ) Last year Marina read about a new investment and although not really understanding it decided to “have a go” and invested $10,000. She has received a holding statement which shows she has 8,000 units in the Pengana Private Equity Trust. It says this investment is listed on the ASX with a stock code of PE1. She has not really had time to see how it has performed and is not really sure if it is a share or some other form of investment. Marina has not been a big believer in superannuation, mainly as she does not really understand it, and just lets things continue as they have for some time. She has two superannuation accounts – one her employer pays into and the other one that just “sits there”. She would be happy to look at doing something with super if it is worthwhile and would be happy to discuss any suggestion you might have. She would like to better understand the tax benefits that she has heard superannuation has. Her current employer pays into the Australian Super Balanced option. When Marina looked at the account online to prepare to meet with you, it showed a balance of $164,325. The other superannuation account is left over from a previous job, which she left several years ago. This account is with HostPlus Super in the Shares Plus option and has a current balance of $18,212. Asset allocations of these super funds can be located from each of the fund’s public websites. As Marina is single, she does not see the need for large amounts of personal insurance cover. She does have the default insurance cover for Life and TPD in the Australian Super account which provides $50,000 for each option. Marina has put in place personal income protection to ensure she has an income in case she was to fall sick or is injured and this will provide 75% of her current salary until age 65 if she becomes eligible to claim benefits under this account. This cover is with MLC and provides a benefit after a 1 month waiting period. As Marina is earning a good salary and can easily cover living expenses, she is not in need of additional income from investments. While not a top priority, Marina would like to structure her investments to take advantage of any tax advantages that may be available. You have completed a risk profile with Marina and the result was that she is effectively a BALANCED investor. She wants a good return on her investments, but does not want to take a lot of risk. Your licensee has provided risk profile definitions, research and recommended asset allocations for three (3) different risk profiles which can be found below ConservativeBalancedGrowth CONSERVATIVE PORTFOLIO BALANCED PORTFOLIO GROWTH PORTFOLIO Grading Rubric This rubric will be used to grade and provide feedback on your Investment Report. Structure of Report and Quality of Discussion – Maximum 20.00Presentation – Maximum 5.00Total Grade – Maximum 25.00  High DistinctionDistinctionCreditPassFailCover Page (1.0)Fully compliant, shows initiativeCompliantMissing 1 minor detail, but otherwise complaintMissing 1 essential detail, but near complaintNot provided or missing >2 essential details 10.8 0.750.7 0.650.6 0.50Table of Contents (1.0)Professional, complete andusefulCompleteBasic format covering all major sections but with some minor errorsMissing major sections, or containsformatting errorsNot provided or very basic attempt 10.8 0.750.7 0.650.6 0.50Discussion of Current Situation and Goals and Objectives (2)Professional, complete, demonstrates depth of analysisNeat, complete, demonstrates basic analysisNeat, complete, demonstrates limited analysisMissing items or little analysis, or major formatting errorsMissing >2 items, no analysis, disorganised 21.6 1.51.4 1.251.2 10.5 0Current Personal Net Worth Statement and discussion (3)Professional, complete, demonstrates depth of analysisNeat, complete, demonstrates basic analysisNeat, complete, demonstrates limited analysisMissing items or little analysis, or minor formatting errorsMissing >2 items, no analysis, disorganised 32.4 2.22.1 1.851.8 1.51 0.5 0Current Portfolio Asset Allocation and Discussion (4.0)Insightful analysis and discussion with appropriate asset allocationconstructionNeat, complete, demonstrates basic analysis and appropriate asset alllocationIncomplete, demonstrates basic analysis and somewhat appropriate asset alllocationErrors in construction of asset allocation and limited discussionNot provided or descriptive only 43.2 32.8 2.62.4 21.5 0.75 0Outline and Discussion of Investment Opportunities (3.0)Insightful and comprehensive analysis of options and their appropriatenessto the clientNeat, complete, demonstrates basic analysis of options and their appropriatenessIncomplete, demonstrates basic analysis of options and their appropriatenessLimited discussion or inappropriate options discussedNot provided or irrelevant discussion 32.4 2.22.1 1.851.8 1.51 0.5 0Proposed Portfolio Asset Allocation, Recommendations and Discussion (4.0)Professional, comprehensive demonstrates depth of analysis, provides originalcontributionsWell-reasoned competent analysis and discussionBasic analysis attempted with errors but appropriate recommendationsBasic analysis attempted with errors, or inappropriate recommendationsLittle evidence of analysis, limited advice, more than 4 issues omitted 43.2 32.8 2.62.4 21.5 0.75 0Recommended Investment Structure for portfolio assets (3.0)Insightful analysis and discussion with appropriate asset allocation constructionGood analysis and discussion with appropriate asset constructionMinor issues with construction and unclear discussion of main issuesErrors in construction and limited discussionNot provided or descriptive only 32.4 2.22.1 1.851.8 1.51 0.5 0References and Appendices (1.0)Extensive and varied sources in complete Harvard WSU styleclearSome varied sources in complete Harvard WSU styleclearLimited range of sources in complete Harvard WSU styleLimited range of sources or some minor errors in Harvard WSU styleNot provided or significant errors in Harvard WSU style 10.8 0.750.7 0.650.6 0.50Clear, concise and effective presentation (3.0)Writing style and presentation is clear, concise, effective displaying superior writtencommunication skillsWriting style and presentation is clear and displaying high writtencommunication skillsWriting style is coherent but opportunity for improvement existsWriting style is unclear at times with a number of grammatical and/or spelling errorsWriting style is poor and difficult to follow with many grammatical and/or spelling mistakes 32.4 2.22.1 1.851.8 1.51 0.5 0Total (25)