Portfolio Construction per information below:
You have been employed as the Chief Financial Advisor (CFA) for Safer Investment Corporation. You replace the former CFA as it was found he has not been generating the desired returns for the company and investors. You are managing an Endowment Fund and a Retirement Fund. Investors are looking to earn above average returns on their investments. These investors have no insurance coverage and have not started to do any estate planning. The age distributions for the investors are as follows:
Age # of clients
28-30 425
31-50 775
51-65 300
65+ 175
Your salary is a combination of basic salary + commission. Commission is based on whether the company and investors achieve the desired return. The salary structure fits your profile as you have built up a reputation as being an aggressive financial advisor who seeks to make everyone happy at all cost.
QUESTION: How will you construct this portfolio and why? Be practical and make use the information that is available in your local market to gain insights on stocks, bonds, money and foreign exchange market etc. Assume a country of your choice. What is the advantage and disadvantages of investing the funds in the selected country? Conduct a comprehensive analysis, (20 marks)
Media Headlines
Please note that the following media release is solely for educational purposes and are designed for responding to the assignments throughout the semester.
1. It is likely that the Federal Reserves will increase rates at a much faster rate in 2018.
2. The sport manufacturing industry in Trinidad will receive a special tax break in 2018
3. All tax types are likely to experience some decrease.
4. Safer Investment Corporation profits continue to soar despite major cash flow problems.
Your response to the above questions MUST include the citation of scholarly articles, credible authors and references.