Your new clients, Bruce and Wayne are seeking your advice.They are keen to invest $980,000 which is
Question:
Your new clients, Bruce and Wayne are seeking your advice.They 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 Shares
34%
TOTAL
100%
Despite their target risk profile, Bruce and Wayne are considering 2 investment alternatives offered by BCG, a notable investment fund manager.They are considering investing in the BCG Balanced Fund, the BCG Growth Fund or a combination of both funds.
The asset allocation of the BCG Funds is detailed in the following table.From your research, you have also been able to determine the average returns generated by these funds during the past three years, for each asset class, as below:
PERFORMANCE
Average return
ALLOCATION
PERFORMANCE
Average return
ALLOCATION
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%
Your task:
You have decided to present Bruce and Wayne with a spreadsheet that shows:
(1) The overall weighted return achieved by investors by investing as per Bruce and Wayne's risk profile,
(2) The overall weighted return by investing in the BCG Balanced Fund, and
(3) The overall weighted return achieved by investing in the BCG Growth Fund.
I have a new spreadsheet that has been designed that I need to complete from the instructions given which is different to the one you have I need assistance in completing this sheet - how can I get this to you as there a number of questions which require a response to for this new spreadsheet