Write a proposal to manage investments on behalf of a pension fund, Suppose you are working for an investment management company and are required to prepare a proposal (maximum 2000 words) to win a new client which is a UK defined benefit pension fund with 500 million of assets in their fund (and the pension liabilities are 520 million) Your proposal is to win the mandate to be appointed as investment manager for one of the following A For 25 million of the assets in the pension fund to be invested in your firms passive index tracking U S equity fund with an ESG focus B For 25 million of the assets in the pension fund to be invested in European (nonUK) fixed income investments, to be actively managed as a segregated portfolio C A Liability Driven Investment strategy to manage 400 million of the assets in the pension fund, which will be managed as a segregated portfolio (the remaining 100 million has already been committed to a different manager who will be following a growth strategy) Please Your writing proposal should include, Describe your investment management company what firm is it historic investment performance record for clients what client base firm has philosophy what fees firm charged what service firm provided 2 Investment process in chosen company what are models used for investment process who makes decisions in investment process what sort of risk controls methods used portfolio turnover what is your firms competitive advantage 3 Why the client should invest in the markets and with the strategy you have chosen, It depends on which strategy you have selected which issues are relevant, but these might include how you would invest the funds active versus passive segregated portfolio versus investing in collective long only portfolio versus long short fund bond versus equity traditional versus liability driven investment If you wish you can look at fund managers websites for background information but you are preparing this for a fictitious investment management company

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Posted on Jul 09, 2021

Write a proposal to manage investments on behalf of a pension fund, Suppose you are working for an investment management company and are required to

Write a proposal to manage investments on behalf of a pension fund,

Suppose you are working for an investment management company and are required to prepare a proposal (maximum 2000 words) to win a new client which is a UK defined benefit pension fund with £500 million of assets in their fund (and the pension liabilities are £520 million).

Your proposal is to win the mandate to be appointed as investment manager for one of the following:

A. For £25 million of the assets in the pension fund to be invested in your firm’s passive index-tracking U.S. equity fund with an ESG focus.

B. For £25 million of the assets in the pension fund to be invested in European (nonUK) fixed income investments, to be actively managed as a segregated portfolio.

C. A Liability Driven Investment strategy to manage £400 million of the assets in the pension fund, which will be managed as a segregated portfolio (the remaining £100 million has already been committed to a different manager who will be following a growth strategy)

Please.

Your writing proposal should include,

Describe your investment management company

• what firm is it?

• historic investment performance record for clients

• what client base firm has

• philosophy

• what fees firm charged

• what service firm provided

2. Investment process

• in chosen company what are models used for investment process?

• who makes decisions in investment process

• what sort of risk controls methods used

• portfolio turnover

• what is your firm’s competitive advantage?

3. Why the client should invest in the markets and with the strategy you have chosen, It depends on which strategy you have selected which issues are relevant, but these might include

• how you would invest the funds

• active versus passive

• segregated portfolio versus investing in collective

• long-only portfolio versus long/short fund

• bond versus equity

• traditional versus liability-driven investment

If you wish you can look at fund managers’ websites for background information but you are preparing this for a fictitious investment management company.