You have been asked by a wealthy client to analyze the attached mutual fund as a potential investment opportunity.

Use the following fact pattern as context to inform your analysis. Make any other assumptions you may need to in order to complete your work.

Fact Pattern

Client Name: Dr. John Doe

Age: 60

Income: $300,000 annually

Tax Bracket: 35%

Debt: $2,800 in credit cards

Martial Status: Single (1 previous divorce) No children

Investment Objective: Moderate Growth

Risk Tolerance: High (Aggressive)

Time Horizon: He will work for another 8-10 years depending on health. He is currently healthy and has a history of longevity in his family).

Goals: To earn a better rate of return than the market with appropriate risk

Concerns: How would a lawsuit or a prolonged health issue impact to my nest egg? I am worried about outliving my money. Should I have more exposure to other asset classes like bonds? I am worried about the markets and the economy (and my health) right now.

Other Investments: $1.2 Million in 403(b) Retirement Plan, $3.6 Million in taxable money

Real Estate: Primary residence in Loudonville, NY ($800,000 home with no mortgage) and a vacation property in Vero Beach, FL ($385,000 condo with $125,000 mortgage)

Hobbies: Stock trading (he is knowledgeable about financial markets and has been actively following them for 20 years)

Potential Investments:

Questions:

The Ticker Symbol is AGTHX for the investment.

0. Whats going on in the current market environment and how does it affect the overall financial plan for Dr. Doe?

1. What's good, bad, great, or ugly about this mutual fund? What is Morningstars view on this? What is their view based upon?

2. Are the portfolio managers of this fund good? What clues might inform your thinking on this?

3. What can you say about the fees? Are they high, low or reasonable? What evidence can you find? How do the fees affect the fund's performance? Can you give data on this?

4. How risky is this fund? What is the disaster scenario? How bad can it get? How can you analyze the risk using tools discussed in class?

5. How diversified is this mutual fund? Support your answer and discuss the layers of diversification in your answer. How does the rise in correlations discussed previously (towards +1) effect diversification?

6. What questions do you have that you would like answered (or have a better understanding of)? What is confusing here?

7. Should Dr. Doe invest? Why or why not? What is your assessment of this fund?

8. What other alternatives might you recommend?

Please answer the questions and give examples. Cite sources.