Mr. Akpafu-lolobi is 55 years of age, is in excellent health, pursues a simple but active lifestyle, and has three children. He has interest in a private company for GH¢50 million and has decided that his children will receive half the proceeds now and will be the primary beneficiary of his estate upon his death. Mr. Akpafu-lolobi is committed to the well-being of his family because he believes strongly that, through the financial stability of his children, other facilities are going to be affected positively. He now realizes that an appropriate investment policy and asset allocations are required if his goals are to be met through investment of his considerable assets. Currently, the following assets are available for use in building an appropriate portfolio for him: Assets Amount Cash GH¢ 45 million GCB shares GH¢ 10 million Shops for rental GH¢ 9 million Residence GH¢ 1 million Total GH¢ 65 million a. Formulate and justify an investment policy statement setting forth the appropriate guidelines within which future investment actions should take place. Your policy statement should encompass all relevant objective and constraint considerations. b. Recommend and justify a long-term asset allocation that is consistent with the investment policy statement you created in Part a. Briefly explain the key assumptions you made in generating your allocation.
Mr. Akpafu-lolobi is 55 years of age, is in excellent health, pursues a simple but active lifestyle, and has three children. He has interest in a private company for GH¢50 million and has decided that his children will receive half the proceeds now and will be the primary beneficiary of his estate upon his death. Mr. Akpafu-lolobi is committed to the well-being of
his family because he believes strongly that, through the financial stability of his children, other facilities are going to be affected positively. He now realizes that an appropriate investment policy and asset allocations are required if his goals are to be met through investment of his considerable assets. Currently, the following assets are available for use in building an appropriate portfolio for him:
Assets Amount
Cash GH¢ 45 million
GCB shares GH¢ 10 million
Shops for rental GH¢ 9 million
Residence GH¢ 1 million
Total GH¢ 65 million
a. Formulate and justify an investment policy statement setting forth the appropriate guidelines within which future investment actions should take place. Your policy statement should encompass all relevant objective and constraint considerations.
b. Recommend and justify a long-term asset allocation that is consistent with the investment policy statement you created in Part a. Briefly explain the key assumptions you made in generating your allocation.
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