NO.PZ2019100901000017
问题如下:
The Prometheo University Scholarship Endowment (the Endowment) was established in 1950 and supports scholarships for students attending Prometheo University. The Endowment’s assets under management are relatively small, and it has an annual spending policy of 6% of the five-year rolling asset value.
Upon completion of the investment policy review by her four-person staff, the CIO makes some recommendations to the Endowment’s board regarding the investment objectives and asset allocation. One of her recommendations is to adopt the endowment model as an investment approach. She recommends investing 20% in private equity, 40% in hedge funds, 25% in public equities, and 15% in fixed income.
Determine whether the board should accept the CIO’s recommendation. Justify your response.
选项:
解释:
Justify your response:
The board should reject the CIO’s recommendation. This recommendation is a significant departure from current practice and entails a much higher level of risk. The size of the investment team is small, with only four people, and it may not have adequate access to or experience in alternative investments. Given the relatively small size of the Endowment, it is unlikely that it has access to top managers in the hedge fund and private equity spaces.
- 想确认下这么回答可以吗?
New allocation should be rejected, because:
① They may not have access to high-quality managers due to their small size and small team.
② They may not meemt the minimum size requiremetn of the alternative investment due to their small size.
2.想确认下,这里的spending rate of 6% 是高是低?我理解,6%是比较高的,因此对每年流动性的要求比较高,因此不适合大比例投资alternative,这可不可以也作为一个reject new allocation 的理由?如果可以的话,应该怎么回答?