Portfolio Management

Sample Cases

This appendix contains material for the four cases that we have developed and used in conjunction with Portfolio Management. The goal in developing these cases was to present realistic situations representative of the types of problems faced by portfolio managers. In fact the first three cases are based on actual business problems. The cases also give students an opportunity to synthesize the material they have learned. By necessity, the book is organized into chapters that cover different aspects of portfolio management. The reality is that investment problems require bringing these different skills together. Here are the four cases:

• Jerry M.: A high-net-worth individual. The case requires a review of the individual's assets, work plans, and life goals and the development of a custom investment policy that provides real cash flows and is adaptable to future contingencies.
• MSSI: A defined benefit pension plan. The defined benefit case requires analysis of the plan liabilities and development of a custom asset allocation and funding program to maximize return and minimize asset–liability variability.
• McLain Capital: A defined contribution plan. This defined contribution case requires a review of the prospective client's objectives and the design of a comprehensive package of investment products for its employees. This proposal must also consider plan effectiveness as measured by employee adoption and the appropriateness of employee allocations.
• Fairbanks Fund: ...