NO.PZ201805280100000401
问题如下:
Discuss two reasons why the proposed asset allocation is inappropriate for Titan.
选项:
解释:
The proposed asset allocation for Titan is not appropriate because:
1 Given the shift in enrollment trends and declining donations resulting from the sanctions, Titan will likely need greater liquidity in the future because of the increased probability of higher outflows to support university operations. The proposed asset allocation shifts Titan’s allocation into risky assets (increases the relative equity holdings and decreases the relative bond holdings), which would introduce greater uncertainty as to their future value.
2 Titan is relatively small for the proposed addition of private equity. Access to such an asset class as private equity may be constrained for smaller asset owners, such as Titan, who may lack the related internal investment expertise. Additionally, the Sun-Fin Private Equity Fund minimum investment level is $1 million. This level of investment in private equity would be 10% of Titan’s total portfolio value. Given Titan’s declining financial position due to declining enrollments and its resulting potential need for liquidity, private equity at this minimum level of investment is not appropriate for Titan.
想确认一下,这题和下一题都是考核constraints吗,但是看到依照根据fund的状况来判投资选择的时候,又感觉有点像考察goal-based 一样(长期的可以多投风险高的,短期的支出需求大的要投流动性好的,风险低的)。但又想到机构投资者一般不用goal-based approach。 心里有点矛盾。