Scribd
Upload
46 views1 page

You Are A Portfolio Manager and Senior Executive Vice President

The Wood Museum Endowment Fund needs $3 million, $3.2 million, and $3.5 million over the next three years from its $25 million endowment to balance its budget. Currently the entire endowment is invested conservatively due to trustee fears over financial crisis. The trustees have asked the portfolio manager to prepare a report on how liquidity requirements, return requirements, risk tolerance, time horizon, tax considerations, regulatory issues, and unique needs relate to determining portfolio policies for the three year period.

Uploaded by

Muhammad Shahid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
46 views1 page

You Are A Portfolio Manager and Senior Executive Vice President

The Wood Museum Endowment Fund needs $3 million, $3.2 million, and $3.5 million over the next three years from its $25 million endowment to balance its budget. Currently the entire endowment is invested conservatively due to trustee fears over financial crisis. The trustees have asked the portfolio manager to prepare a report on how liquidity requirements, return requirements, risk tolerance, time horizon, tax considerations, regulatory issues, and unique needs relate to determining portfolio policies for the three year period.

Uploaded by

Muhammad Shahid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

You are a portfolio manager and senior executive vice

president #6547
You are a portfolio manager and senior executive vice president of Advisory Securities
Selection, Inc. Your firm has been invited to meet with the trustees of the Wood Museum
Endowment Funds. Wood Museum is a privately endowed charitable institution that is
dependent on the investment return from a $25 million endowment fund to balance the budget.
The treasurer of the museum has recently completed the budget that indicates a need for cash
flow of $3 million in 2013, $3.2 million in 2014, and $3.5 million in 2015 from the endowment
fund to balance the budget in those years. Currently, the entire endowment portfolio is invested
in Treasury bills and money market funds because the trustees fear a financial crisis. The
trustees do not anticipate any further capital contributions to the fund.The trustees are all
successful businesspeople, and they have been critical of the fund's previous investment
advisers because they did not follow a logical decision-making process. In fact, several previous
managers have been dismissed because of their inability to communicate with the trustees and
their preoccupation with the fund's relative performance rather than the cash flow
needs.Advisory Securities Selection, Inc., has been contacted by the trustees because of its
reputation for understanding and relating to the client's needs. The trustees have asked you, as
a prospective portfolio manager for the Wood Museum Endowment Fund, to prepare a written
report in response to the following questions. Your report will be circulated to the trustees before
the initial interview on June 15, 2013.Explain in detail how each of the following relates to the
determination of either investor objectives or investor constraints that can be used to determine
the portfolio policies for this three-year period for the Wood Museum Endowment Fund.a.
Liquidity requirements.b. Return requirements.c. Risk tolerance.d. Time horizon.e. Tax
considerations.f. Regulatory and legal considerations.g. Unique needs and circumstances.View
Solution:
You are a portfolio manager and senior executive vice president

ANSWER
http://paperinstant.com/downloads/you-are-a-portfolio-manager-and-senior-executive-vice-
president/

1/1
Powered by TCPDF (www.tcpdf.org)

You might also like