What you think that pension fund should do

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Reference no: EM131687877

Activity

You are approached by a large pension fund with assets of $60bn who currently have a very traditional (though global) asset allocation, which is 60% equities and 40% fixed income. They employ a mix of active and passive investments using the MSCI World Equity and Citigroup World Government Bond indices as their benchmark. Their long run mean return has been 6.75% per annum with 8.0% annualised volatility and a maximum drawdown of 30% which occurred between October 2007 and February 2009.

The pension fund is considering adding alternatives to their portfolio and ask you to give a presentation to the trustees who are a mixture of investment experts and members of the fund with a less technical background.

Using what you have learned during this course, prepare a PowerPoint presentation with a maximum of 20 slides outlining what you think that pension fund should do, highlighting both the opportunities and the risks.

As you are going to be graded on the contents of the slide deck and will not have the opportunity to make the presentation yourself you can add commentary in the ‘notes' section under each slide if you think it is necessary to clarify points made on the slides. Use the spreadsheet Return Data ForAssignment.xls, which contains the return data for all of the asset classes we have covered to save you having to gather any data.

Attachment:- Return Data For Assignment.xlsx

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Recommendation is made on which alternative asset classes a pension fund should invest in. This recommendation is based on analysis of returns given by hedge funds, PE funds, VC funds, Real Estate and Commodities in the period 1994 - 2016. A PPT is made , highlighting the recommendations. This PPT is to be presented to investors and trustees of the pension fund.

Reference no: EM131687877

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inf1687877

2/12/2018 2:46:48 AM

Yes! I have got the paper. Many thanks to you, especially for help. For me it's a superb, intelligent and logical! I am completely mindful of it! Along these lines, in the event that you concur obviously, I'd like to request that you proceed with our participation and after that we would make everything up.

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