Acumen Asset Funds is an investment consultancy and its managers regularly advise private individuals on the best way for them to invest their money. Its investment products are the following (from low to high risk and relatively low to potentially very high yield):
Acumen International Debenture Fund: This fund invests in debentures in Europe, USA, Asia, Australia. It takes advantage of international currency fluctuations. Low risk. income not paid out but reinvested. Average result over the past three years: 9.3%.
Acumen European Stock Fund: this fund invests in the shares of reputable European companies. The companies are financial institutions, those dealing in consumer goods, those providing raw materials, and the energy and service industries. The percentage of each varies according to market predictions. Healthy steady growth, reasonable dividend, medium risk. Average result over past three years: 10.4%.
Acumen Asian Stock Fund: This fund invests in the shares of reputable companies in the Far East (mainly Japan, Korea, Thailand, Singapore). No dividend, based solely on increasing share value, medium to high-risk. Average result over past ten years: 37.6%, over the past three years: 4%.
Acumen New Economy Fund: this fund invests in the shares of promising new companies throughout the world (mainly Europe, USA and Japan). Companies: high-tech, computer-related, pharmaceuticals, research institutions. High risk. Average over the last ten years: 85.5%, and over last year: -40%.
Today, the investment manager is giving advice on investment to three clients.
Role A: the investment manager
Since an investor’s best options will depend on their personal circumstances, your advice is rarely the same. Read the above information carefully, then listen to each of your clients and recommend the best investment option for their circumstances. Good exchange of information is crucial. The sum to be invested is the same in all cases: £10,000.
Role B: Mandy Plummer, customer
You are 25 years old and have received a sum of money from your parents as a gift. You are planning to marry Stuart in a year or two. You have no debts and no immediate need to spend money, though your future costs are likely to be high. You are saving for a home of your own. You are inexperienced in the world of finance, and since your salary is not large, you have to watch every penny.
Role C: Anthony Biddens, customer You are 40 years old, and are saving for when your two sons are at university and may need to be supported. They are now 10 and 12. You have no immediate need to eat into the money you have saved, though you are worried about increasing costs and inflation and about your reduced spending power.
Role D: John Green, customer
You are 60 years old, and about to retire. Your mortgage has been paid off, and you are well off. Although you do not need the money personally, you want to create a greater inheritance for your three children. You are an experienced investor.
|