Edwin then heads for his meeting with Andrew, who is interested in opening a new account with DBS. As part of the onboarding process, Edwin learns that Andrew Matthews and his wife Jane are both 50 years old, have no children, and live in Sydney, Australia. Andrews father recently died and left his entire estate to Andrew, who expects to receive his after-tax inheritance of AUD 9 million in one year. The Matthews both plan to retire at that time and would like help to establish an investment plan. The couple currently own a home valued at AUD 3.9 million, do not have a portfolio of investable assets, and do not consider their home as part of their investable assets. In one year, their home mortgage balance will be AUD 3.7 million and other outstanding debt will be AUD 160,000. They will pay off their mortgage and other debts once the inheritance is received. Currently, Andrew and Jane have a combined after-tax salary of AUD 500,000, incurred AUD 263,000 over the past year in living expenses, and make annual amortised mortgage payments of AUD 237,000. Matthews company will pay him an after-tax pension of AUD 51,000 starting one year after he retires, with the payments increasing by the rate of inflation, which is expected to be 3% annually. His employer will continue to pay all of the Matthews medical costs until Andrew or Jane dies, whichever comes later. The Matthews expect their living expenses to also grow at the rate of inflation and ask you to use the average life expectancy in Australia of 82 years for planning. The Matthews consider their investment base to be large given the inheritance, want their portfolio to be invested conservatively, and want to maintain the real value of their investable assets over time. They plan to leave any assets left in their estate to charity. Edwin notes that the effective tax rate is 20% and the risk-free rate is 2.5%. As part of drafting an investment policy statement for the Matthews: (a) Estimate their return objective.