Financial Portfolio

Table of Contents

Page

Statement of Goals

Risk Analysis

United States Economy Overview

Canada Economy Overview

- Canadian Bond Market

- TD Canadian Bond –A

- BMO Investments Inc.

Assets Allocation

Industries

- Application Software

o Oracle Corporation

o Adobe Systems Inc.

- Drug Manufacturers

o Astra Zeneca Plc.

o Glaxosmithkline Plc.

- Oil & Gas

o Arena Resources Group Corp

o CNX Gas Corporation

- Money Center Banks

o Bank of America

o JP Morgan Chase & Co.

- Credit Services

o American Express Company

o Moody’s Corp.

- Publishing – Periodicals

o SmartPros Ltd.

- Technical and Systems Software

o Asoft Corp.

o National Instruments Corp.

- Assets Re-allocation

- Summary

STATEMENT OF GOALS

Our goal with this investment simulation is to enhance retirement saving for our investor Peter. Peter is a 25 year old bachelor and has worked in the EA SPORTS center for 3 years in Vancouver. His minimum wage is $48,000 (after tax) annually and has saved $50,000 in bank of Montreal. Recently, he won a $200,000 (after tax) lottery prompting him to have an investment plan for the following reasons. First of all, Peter wants to retire at the age of 65, and hopes to live comfortably after retirement. After which he plans to buy an apartment with a projected cost of $500,000. The down payment of the apartment is $50,000 and the mortgage for each month is $1,000. Now, he has $200,000 in cash available for investing and is willing to take on some risks to get a higher return since his debt has been minimized due to his lottery win. There is no unique circumstance for him and again, he has no plan to get married until the next 30 years. So the time horizon we are planning for is the upcoming 30 years which is a long term plan. He is in his early years of wealth accumulation, so it’s wise for him to invest in stocks that will yield...