Prepare a limited SOA for Tex that include investment recommendations for both his ABC Super fund and for his personal cash balance of $350,000.
Important notes to students:
• Tex’s portfolio of assets within the ABC Super fund should be aligned to his identified risk profile.
• You should construct Tex’s non-superannuation portfolio to align with his medium-term goals, and in particular with his desire to purchase a property in five years.
• Tex will be charged a fee of $3,850 (GST inclusive) for the limited SOA which includes the cost of implementing this investment advice.
• Assume you have previously advised Tex on his personal risk cover, which remains appropriate at this time, and he does not wish to have estate planning issues considered as part of this advice.
• The case study superannuation fund and managed fund investment options on the approved products list (APL) use real funds. Assume for the purposes of this assignment that the APL in Appendix 1 is to be used for the non-superannuation investments.
• Students are expected to demonstrate that they have conducted appropriate analysis and research of the existing funds in the ABC Super portfolio, as well as the funds that are being recommended for inclusion in both the superannuation and non-superannuation parts of the portfolio.
Students should refer to their answers and analysis provided in Assignments 1 and 2 in relation to the recommendations made for Tex.