This case study analyzes investment options and develops a portfolio management strategy for a Senior Citizens' Recreation Club with a $500,000 portfolio. The report begins with an executive summary and an investment policy statement (IPS) outlining objectives, risk tolerance, and manager responsibilities. It details asset allocation strategies, considering factors like investment objectives, risk tolerance, and time horizon. The analysis includes recommendations for equity (ASX 200 companies) and fixed-income investments (Australian government and corporate bonds). The portfolio comprises equity investments in Commonwealth Bank, CSL Limited, and James Hardie Industries, along with fixed-return investments in AGBs and cash markets. The report concludes with a discussion of performance monitoring, rebalancing, and the rationale behind the chosen asset allocation, emphasizing the importance of balancing risk and return based on the club members' needs and preferences. The student has used the age based method to allocate assets to the club members.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
