You are presented with a prospective client for you to handle their financial affairs being assessed as fit by the company as a fund manager. His name is Mr. Juan Sixte Araneta, a wealthy scion of the famous Araneta clan from lloilo and Negros. He was just recently appointed by their matriarch Dona Maria Consuelo Araneta to handle the financial funds for the Araneta foundation and Araneta Investments. The combined funds hold approximately Php500 million pesos as a management fund for the 30 -year-old jixte to prove to them he has what it takes to grow it. He has a degree in social economics and the only monetary management experience he has was dealing with banks. He has little experience in stock trading let alone managing funds. Your job is to assist him in making suggestions on how to grow this fund. Before you went on to meet him you were briefed first by Dona Araneta about the financial policies of the family. One the Araneta foundation was set up for purely charitable purposes, with the focus on education and social services as its main objective. Therefore, the fund is only allocating 30% of its entire investable funds for financial gains. They prefer to keep it conservative and at least above the inflation rate to maintain its value for the next 5 years. The rest of the fund goes to charity and wages for its staff. Two Araneta investments is for financial gains with 5% of any gains earmarked for Araneta foundation. Its minimum return must be 10% above the inflation rate, but all short-term investments must be squared within the fiscal year while long term investments are maximum up to 10 years with a ROI within 2 years. Any profit taking from long-term investments must first be consulted with the Araneta board for final approval. Each fund has been allocated an equal share of the total fund. On hand you are given the following business opportunities that might interest sixtg. 5tocks - the following stocks are projected to grow by as much as 5 to 25% within the year: BANCO DE ORO price at 125.80 Metro Pacific Investments Corp. 4.50 Globe Telecoms 1,850 Int container Terminal Services 200 BPI-107.90 ACEN Corp. 6.64 Megawerld corp 1.98 Security Bank 96 5M Prime Holdings 35.50 5M Investments 896 Of these stocks the following are consistently declaring cash or stock dividends or a combination of both: BDO, BPI, GLOBE, METRO PACIFIC INVESTMENTS, SECURITY BANK, SM PRIME HOLDINGS AND SM INVESTMENTS. Aside from these the following bonds are also being considered for investment: Ayala bond 5-year maturity with a gross interest rate of 4.21% 5M progress bonds 10 -year maturity with a gross interest rate of 3.5% Ayala bond 5-year maturity with a gross interest rate of 4.21% T-bills with a 3.1% interest rate for the next 10 years with quarterly interest As a final consideration an investment equity proposal from Double Dragon for their lloilo city project called Hotel101 for a Php4.5 million per unit on the 300 -room hotel, with a discount of 20% per unit for a minimum of 10 unit paid in cash. The projected ROl is within 3.5 years with a projected rental income of Php25,000 per unit at 15% room capacity. It's projected to be finished in 2 or 3 years' time with a projected increase in land value of 3% annually. Given these facts answer the following questions: 1. How much are the available funds for investment purposes and how would you allocate the funds based on the best risk assessment? 2. Of the options being given, you are instructed further by Dona Araneta to maximize all options being given but it's up to you to allocate it. Before allocating it consider the following additional facts. The inflation rate for the last 6 years has been at 3.5% this year it's being projected at 6%. The war in Ukraine is expected to widen and hurt global trade. However, several goods are considered vital for the world like sugar, coconut byproducts and semiconductors as components for the increasing hi tech warfare. What are the institutions most likely to benefit from these facts that will affect your investment allocations. Of your investment allocations where would you categorize them? Conservative or aggressive, justify your reason? 3. Create an investment portfolio showing the allocation of funds for each stock, bonds, and equity investment and give a reasonable return within 5 years. 4. Based on the portfolio that you have created, justify why this would be the best investment matrix for Sixte. Write a short essay to justify