Clients are keen to invest $980,000 which is currently held in cash.Their agreed target asset allocation based on their risk tolerance is:

Cash 5%

Fixed Interest 25%

Listed Property 4%

Australian Shares 32%

International Shares34%

TOTAL:100%

Clients are considering 2 investment alternatives offered by BCG (BCG Balanced Fund, and BCG Growth Fund - or a combination of both funds). Asset allocation of the BCG funds are below:

ALLOCATION PERFORMANCE Average return BCG Balanced Fund BCG Growth Fund Cash 2.00% 10.00% 3.00% Fixed Interest 6.00% 20.00% 10.00% Listed property 12.50% 9.00% 11.00% Australian Shares 7.80% 37.00% 39.20% International Shares 9.50% 24.00% 36.80% 100.00% 100.00%Portfolio Allocation Allocation Weighted Return (4) or Allocation Weighted Return (5) % $ % S % $ % Allocation To BCG Balanced Fund 50.00% $490,000.00 25.00% $245,000.00 Allocation To BCG Growth Fund 50.00% $490,000.00 75.00% $735,000.00 Total Portfolio 100.00% $980,000.00 0.00% $0.00 100.00% $980,000.00 0.00% $0.00 Fund Comparison Asset Class Performance Risk Profile (1) BCG Balanced Fund (2) BCG Growth Fund (3) Allocation Weighted Return Allocation Weighted Return Allocation Weighted Return % $ % $ % $ % $ 3.00% Cash 2.00% 5.00% 10.00% 10.00% Fixed Interest 6.00% 25.00% 20.00% Listed Property 12.50% 4.00% 9.00% 11.00% 39.20% Australian Shares 7.80% 32.00% 37.00% International Shares 9.50% 34.00% 24.00% 36.80% 100.00% $0.00 0.00% $0.00 100.00% $0.00 0.00% $0.00 100.00% $0.00 0.00% $0.00 Performance Allocation Average Return BCG Balanced Fund BCG Growth Fund Cash 2.00% 10.00% 3.00% Fixed Interest 6.00% 20.00% 10.00% Listed Property 12.50% 9.00% 11.00% Australian Shares 7.80% 37.00% 39.20% International Shares 9.50% 24.00% 36.80% 100.00% 100.00%