NO.PZ2023010409000007
问题如下：
Bern Zang is the recently hired chief investment officer of the
Janson University Endowment Investment Office. The Janson University Endowment
Fund (the Fund) is based in the United States and has current assets under
management of $12 billion. It has a long-term investment horizon and relatively
low liquidity needs. The Fund is overseen by an Investment Committee consisting
of board members for the Fund. The Investment Office is responsible for
implementing the investment policy set by the Fund’s Investment Committee.
The Fund’s current
investment approach includes an internally managed fund that holds mostly
equities and fixed-income securities. It is largely passively managed with
tight tracking error limits. The target asset allocation is 55% equities, 40%
fixed income, and 5% alternatives. The Fund currently holds private real estate
investments to meet its alternative investment allocation.
Describe how each
of the following common characteristics of institutional investors supports the
Fund’s allocation to private real estate:
i. Scale
ii. Investment horizon
iii. Governance framework
解释：
Scale:
- institutional investors usually has large scale so as to meet the minimum instrument size required by alternative investment allocation.
- The Janson Fund has a 12 billion assets which is very big so it is able to invest n alternative investment.
- The large scale of fund also gives it the access to managers that have expertise in AI
Investment Horizon
- Institutional investors like the Jason Fund usually has a long term horizon and low liquidity needs.
- AI investments such as private real estate is very illiquid and usually needs long term interment horizon due to its characteristics such as lock period before it starts to pay back.
- In this case, it is AI is a good choice for the Jason fund to earn excess time and liquidity premium.
Governance framework
- Institutional investors like Jason Fund usually has a formal governance.
- AI is a complicated financial investment and usually requires professional investment managers either within the company or through outsourcing third party manager.
- Institutional investors is likely to have access to managers that have expertise in AI
