: Pension Fund

Investment Management

Group Project: Pension Fund












Executive Summary

American Cruise Lines (ACL) is a leading global journey enthral company with a market capatalization of $ 10 billion, and with the assets of Defined profit Pension Plan valuing $ 100 million. The aim of this project is to maintain ACLPs investment portfolio depending on our investment research and the financial position of ACL.
Generally, the direction is to diversify the assets of the architectural plan broadly and expose varied segments of the fund so that optimum returns on its investments can be achieved. The primary investment physical object is to build a plan surplus by setting a return objective of 200 basis points (2.0%) above the minimum required consider of return of 9%, which is 11%. And three particular peril factors needs to be taken into consideration about whether ACLP has a below-average, average, or above-average ability to take risk compared with the average for the cruise industry. Besides, the possible constraints also needs attention in finding making process.
Since the nature and feature of pension fund is reduce on the safety rather than return rate, we choose virtually conservative investment portfolio whose risk tends to be low.



Diversification reduces some(prenominal) the upside and downside potential for the market and allows for more consistent performance, therefore, asset allocation and security selection are made thence to fulfill the investment purpose. After the selection, different measuring sticks are taken to manage the risk of the portfolio. To step further, we choice the Sharpe ratio to measurement the performances of ACLs portfolio. In addition, there are three benchmarks we are pass to use: absolute index, composite index, and a portfolio which have the standardized ingredient with our portfolio.


1. INVESTMENT POLICY STATEMENT
1) RETURN OBJECTIVES
The purpose of American Cruise Lines (ACL) pension plan is to provide retirement income for its employees. To...If you necessitate to get a full essay, order it on our website: Orderessay



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