Portfolio Paper

Submitted By sararennie
Words: 1851
Pages: 8

Table of Contents

Our Approach
Types of Investments: Large Market Capitalization Small Capitalization International Investments Fixed-Income Securities Cash Investments
Client 1: Jeremy Rodrigo
Client 2: John and Sue Henderson
Client 3: Mayumi Xian
Client 4: Bill and Nancy Nussbaum
Client 5: Bob Davis
Works Sited


At our investment advisory firm we are committed to understanding our client’s needs to generate the potential for the most profitable returns. We believe honest communications and respect go far in creating long-term, trusting relationships. We are confident in our abilities to help our clients invest for a better future. Our training and knowledge allows us to take calculated risks and reap the many benefits.
We are active and resourceful in developing proactive investment strategies for our clients. We are generous with our skills, and evaluate each client and their needs. We strive to help our clients find the best fit for their personal investment style.

Our Approach
We focus on our client’s age group to evaluate their investment style and five types of investments which are highlighted below:

Asset Class Estimated Rate of Return
Large Cap 9.78%
Small Cap 11.87%
International 13.87%
Fixed Income 4.45%
Cash 2.49%

Large Market Capitalization Large market capitalization (Large-Cap or Big Cap) investments refer to companies. These companies have a market capitalization value greater than $10 billion. Market capitalization is calculated by multiplying the number of a company’s shares outstanding by its stock price per share. Large Cap funds are less volatile than small cap funds and usually have smaller returns. They are typically an investors core long-term holding. Some of the companies in this category are Wal-Mart, Microsoft, and General Electric.

Small Capitalization Small Capitalization (Small-Cap) refers to stocks with a relatively small market capitalization, usually between $300 million and $2 billion. An advantage in investing in small-cap stocks is the opportunity to beat institutional investors. With the restrictions placed on Mutual funds that restrict them from buying large portions of any one issuer’s outstanding shares it makes them hard to place in funds. There are two types of small cap investors. Aggressive investors will buy up and coming technology companies taking high risks in hopes of a big payout. Value investors will look for companies that have taken a temporary hit in the stock market with hopes that they will bounce back.
International Investments International investing is a strategy of selecting globally-based investment instruments as part of an investment portfolio. People often invest internationally for diversification, to spread the investment risk among foreign companies and markets; and for growth, to take advantage of emerging markets. Investments included in international are American Depository Receipts, exchange-traded funds, and direct investment in foreign markets. There are some different risks to consider when investing internationally including: -Fluctuations in currency exchange rates -Changes in market value -Significant political, economic and social events -Low liquidity -Less access to important information -Foreign legal remedies -Varying market operations and procedures
Fixed-Income Securities Fixed-income securities are investment that provide a fixed periodic payment and have an eventual return of principal at maturity. These payments are fixed and the investor is aware of the payments in advance. An example of a fixed-income security would be a 5% fixed-rate government bond where a $1,000 investment would result in an annual $50 payment until maturity when the investor would receive the $1,000 back. These investments typically offer a lower return on the investment due to…