Your clients,AdamandDonnaSmith, met with you a week ago because they were seeking some advice regarding how to invest a sum of money that is maturing from a GIC in two weeks. At that time you established that they did not want to invest in individual stocks, bonds, and money market instruments, but wanted the entire amount invested in mutual funds. Although you explained to them that they should select mutual funds from various different companies, they told you that they only wanted to useDynamicmutual funds becauseDonnahas an administrative position at that company. They have informed you that they are seeking similar investment advice from at least one other financial advisor at another financial institution, and they are willing to invest with you if you produce the best proposal. You have had a chance to do some research and now you are about to present your recommendations. 

Your clients currently have the following financial assets and major personal use assets: •a house worth $1,000,000, with a $700,000 mortgage •a joint $300,000 GIC maturing in two weeks at a competitor’s financial institution othis money was originally inherited •a joint $40,000 non-redeemable GIC maturing in 3 years at your financial institution •each of them has a savings account with a balance of $15,000 •Adam’ RRSPhas $40,000 in a 5-year non-redeemable GICat a competitor’s financial institution •Donna’s RRSPhas $50,000 in a 3-year non-redeemable GIC at your financial institution •neither spouse has a pension plan where they work and each earns approximately $90,000/year •they are both in their early 40s, they have three children between 9 and 15 years old •both spouses have mainly invested in guaranteed investments in the past, and therefore have only a very limited amount of experience investing in equities 

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Given the information above, create a portfolio of mutual funds for their non-registered account using the entire amount that is maturing from the GIC in two weeks. Ensure that the portfolio meets their suitability requirements. Create the mutual fund portfolio using only 5 different Fidelity mutual funds. Your proposed portfolio should include the fund name, fund code, amount invested, and percentage of portfolio occupied by each of the mutual funds. [10 marks] Given the information above, create a portfolio of mutual funds for their non-registered account using the entire amount that is maturing from the GIC in two weeks. Ensure that the portfolio meets their suitability requirements. Create the mutual fund portfolio using only 5 different Fidelity mutual funds. Your proposed portfolio should include the fund name, fund code, amount invested, and percentage of portfolio occupied by each of the mutual funds. [10 marks]

Answer rating: 100% (QA)

Mutual Fund Portfolio Recommendation for Adam Donna Smith Client Background Age Early 40s Risk Tolerance Low to Moderate Limited experience with equit... View the full answer