Project - CIBC Projcet 2018 INV. PDF

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CIBC Projcet 2018 INV....

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Chris Gresat FMGT 4620

Euland Chu

December 4, 2018

1. Investment Name: CIBC Global Equity Fund - Class A 2. Description: The fund is to provide long-term growth through capital appreciation by investing primarily in a diversified portfolio of equity securities of foreign companies located in North America, Europe, the Far East and the Pacific Basin. 3. Reasons to why this would be an attractive investment given client’s objective and risk tolerance: • Client’s objective is aligned with the fund recommended based on the growth fund nature. The proposed fund is an equity growth fund that is broadly diversified among various companies and countries around the world. • CIBC Global Equity Fund has a Medium risk rating which is in line with Mr. Gresat’s above average risk tolerance. • Since the fund recommended has a higher volatility, having a time horizon over 20 years would minimize the risk of client withdrawing the fund at its worst performance and ride along with the investment growth in the long term. • As this specific fund will only make up 10% of Mr. Gresat's total investment portfolio, this would help him achieve the growth objective he wish to obtain without overweighting equity in the overall investment portfolio he currently holds. 4. Risks to the investment: • Currency risk: apart from approx. 2% cash reserve, almost all investment were invested in the foreign market with the exposure to currency exchange risk. • Foreign market risk: as the fund is composed including investment in countries in East Asia & European region, the performance of the fund would be influenced by the foreign market risk. • Derivative risk: as 45.1% of the investment are index future, the fund is also exposed to derivative risk...