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.
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.
解释：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.
我的答案如下，请老师批改下谢谢：
The board should not accept the CIO’s recommendation, because the Endowment’s assets under management are relatively small, which may not reach the thresholds of alternatives. The 60% allocation in alternatives may make the portfolio too concentrated in illiquid assets.
Besides, the annual spending rate of 6% (after HEPI) requires higher liquidity needs and the 40% allocation in public equities and fixed-income may not meet the needs.
然后我还有一个问题：为啥一谈到alternative，CFA答案里几乎只说“团队太小对另类投资没有经验、无法接触到顶级基金经理”这个问题？“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.”这个问题有这么严重？？答案居然只说这个，而且不只是一道题目。
我觉得还有一个重要问题是，the portfolio may not meet the minimum size requirements of alternatives due to the small size. 还有就是60%配置在另类里，不会太高吗？毕竟它每年的spending rate要6%，剩余40%的public配置能达到？
