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Task 3 - Asset Profiles v0.1
Task 3 - Asset Profiles v0.1
Task 3 - Asset Profiles v0.1
• Asset Class: Fixed Income Nominal Bonds • Asset Class: Inflation Linked Bonds
• Brief description: Generally pays a set rate of • Brief description: Generally pays a set rate of
interest over a given period, then returns the interest above inflation over a given period, then
investor's principal returns the investor's principal
• Expected annual returns (L/M/H): Low to Medium • Expected annual returns (L/M/H): Low to Medium
• Volatility (L/M/H): Low • Volatility (L/M/H): Low
• Inflation protection (Yes/No): No • Inflation protection (Yes/No): Yes
• Currency denomination: USD or Non USD • Currency denomination: USD or Non USD
• Other distinguishing features: Has an inherent • Other distinguishing features: Payments vary
risk of bond issuers defaulting. Could be minimized with inflation
if the bond is issued by a developed country’s
government
Asset Classes (cont.)
• Asset Class: Real Estate • Asset Class: Cash and Cash Equivalent
• Brief description: Ownership of a real estate asset • Brief description: Also called currency, or medium
including home or investment property, plus shares of exchange
of funds that invest in commercial real estate • Expected annual returns (L/M/H): None
• Expected annual returns (L/M/H): Low • Volatility (L/M/H): Low
• Volatility (L/M/H): Low • Inflation protection (Yes/No): No
• Inflation protection (Yes/No): Yes • Currency denomination: USD or Non USD
• Currency denomination: USD • Other distinguishing features: Offers high
• Other distinguishing features: Values tend to rise liquidity but loses value over time due to inflation
and fall more slowly than stock and bond prices.
Overall, return consists of regular rental income and
gains through increase in property price