The Inger's

Youve been asked to manage the Inger family account, which is a new relationship for your firm. They have no stated investment policy or guidelines. Peter and Hilda Inger have been married for 37 years with two children, Christa and Hans, aged 25 and 30. Peter Inger, 59, is a successful entrepreneur who founded a boat manufacturing business, Inger Marine, when he was 23 years old. He has worked compulsively to build the company into a producer of luxury pleasure boats sold worldwide, but he is now considering a business succession plan and retirement. Peter believes he can sell his business in the next 3 months $5 million. Hilda Inger, 57, comes from a wealthy family. Since her marriage to Peter, she has been a housewife and mother to Christa and Hans. Hilda is the beneficiary of a trust established by her family. Throughout her lifetime, the trust will distribute to her an inflation-indexed annual payment (currently $75,000), which is taxed as personal income. At her death, payments will stop, and the trusts remaining assets will be transferred to a local charity. Peter is a perfectionist and likes to maintain control. He has consistently been averse to risk, leverage, and change, both in his company and in his personal life. Peter already holds a position in gold bullion, which he intends to hold for the foreseeable future. His goal is to maintain his standard of living. Hilda is risk neutral and doesnt have a financial background in business or personal finances. Hilda would like to build a new home once Peter retires. She figures that the sale of their current home could pay for the new build.

create a faux-investment fund using $100,000 of hypothetical money invested in a minimum of 10 investment securities. Students must prepare an investment policy which mirrors (but does not copy!) best practices, which should explain precisely how the fund will invest, in which type of securities, with which particular trading strategy, and report on performance. must track their trades, and prepare investment thesis for each security in their portfolio, as well as a portfolio level performance report at the end. present and defend the holdings.