You are a Pension Consultant with a Leading Investment Management company. The company conducts an annual pension renew meeting and you are expected to attend This year, the CEO has asked you to present a case study on a number of issues which are currently affecting the industry.”
He has identified two main aspect which your presentation should focus on, optimal portfolio performance measurement and risk/returns assessment. The CEO called and Informed you that at your presentation a few of the trustees of the Board would be present and so you should made mention of benchmarks since it’s not fully understood.
In your case study, highlight the fallowing :
1- Assess two main factors which a portfolio manager should always consider before designing Investment strategies.
2 Evaluate the appropriateness of using benchmarks in creating optimal portfolios. In your evaluation ensure that you make mention of the Importance of the incorporating benchmarks such as:-
• The market Index
• Benchmark normal portfolio