write a Portfolio Performance Assessment includes: - This...

write a Portfolio Performance Assessment includes:

- This assignment is to be completed and submitted in your groups (approx. 1-2 pages).
- List your asset holdings (i.e. list the individual investments) for each allocation group (e.g. equity, bonds, cash, other—hybrid).
- Summarize the return performance of your different allocation groups. Further breakdown the results by sub-category (e.g. large cap, small cap, international, etc.) of the investment strategy.
- Summarize the return performance of any particular sectors in which you have a vested interest, if applicable (e.g. consumer staples, energy, financial, etc.).
- Summarize the overall return performance of the portfolio thus far. If the portfolio is not performing as you expected, think about why that may be.
- Describe any major economic news items related to the investment markets and how those events may have impacted your portfolio.
- Describe any change (i.e. trades) in holdings or funds that have been made and why.
- Describe any future or additional changes to your portfolio which you may plan to make and why.

About

Fictional Client Profile: The Schraders 

You are a CFA and managing partner of a prestigious investment counseling firm which specializes in individual rather than institutional accounts. The firm has developed a national reputation for its ability to blend modern portfolio theory and traditional portfolio methods. You have written several articles on portfolio management and are an authority on establishing investment policies and programs for individual clients, tailored to their circumstances and needs. 

Mr. and Mrs. Schrader have been referred to your firm. At your first meeting on March 20, 2023, Mrs. Schrader, age 54, explained that she is a marketing executive with Gray Matter Technologies and has been with the company for the last 23 years. Moreover, her husband, age 41, has been a private detective for the last 10 years after an 11-year stint as a law enforcement officer. Mr. Schrader suffers from no current health issues. Mrs. Schrader's life expectancy is 80 years old, while that of Mr. Schrader is 90. 

During your meeting, you find out that Mrs. Schrader makes approximately $240,000 per year, and her husband $50,000 per year. However, Mrs. Schrader intends to retire in the next couple of years due to a previous lung cancer diagnosis, but the lung cancer is currently in remission. Mr. Schrader plans to continue working until his early 60's. Mr. and Mrs. Schrader love the humidity and extremely hot summers of the Gulf coast, so when Mrs. Schrader retires, they plan to sell their home in Houston, in which they have approximately $150,000 of equity, and move to Florida where they plan to buy a house for about $250,000. 

The Schraders have minimal life insurance policies through their work (approximately, $50,000), but these will likely lapse when they move. Outside of minimal investment in their company 401k's, the Schraders have not invested much because they fear they could lose what they have worked so hard to achieve. Mrs. Schrader has approximately $70,000 in her 401k, while Mr. Schrader has nearly $45,000 in his pre-tax retirement plan. Interestingly, you find that the Schraders have nearly $685,000 currently sitting in a money market account. Moreover, Mrs. Schrader also recently received a small inheritance from her parents in the amount of $315,000. In all, they have approximately $1,000,000 of investible assets. They realize now that they need to make their money work harder for them, especially since Mrs. Schrader will no longer be working soon. 

The Schraders are concerned about their long-term prospects given Mrs. Schrader's nearing retirement. They are equally concerned about investing the money in the capital markets where they fear their nest egg(s) could be lost. Both Mr. and Mrs. Schrader will be eligible for Social Security retirement benefits in the future. The Schraders will need about $6,500 per month to maintain their current lifestyle. They have no children and are not concerned about leaving any type of inheritance for their family.