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Hewlett Foundation Case Study Questions
Finance & Accounting
Pages 5 (1255 words)
Running Head: Hewlett Foundation Case Study Hewlett Foundation Case Study Name Institution Date Hewlett Foundation Case Study Introduction An asset allocation decision involves an evaluation of a portfolio. The analysis of each portfolio helps an investor in making a decision when investing (Reilly & Brown, 2011)…
In this report, we will evaluate investments options that have been suggested by the asset allocation committee of Hewlett foundation (HF). We will ascertain whether the committee has taken the right track in its investment decision. The report will also evaluate the decision process that the committee uses. 1.1 Evaluation of Hewlett foundation (HF) asset allocation decision process The asset allocation policies are formulated by the foundation, internally managed but uses external manager to invest the portfolio. The external managers can either invest 100% of the asset in indexed instruments or invest partially depending on the allocation method. There are four methods that the foundation uses in evaluating the performance of its portfolio. To begin with, it uses a benchmark with which it compares the performance of each asset. If the portfolio outperforms its benchmark, then it is a worth portfolio to invest in. on the other hand, if its performance is less than that of the benchmark, then it’s not a worth portfolio (Keith et.al, 2011). The second is comparing the performance of HF ‘composite benchmark’ with that of U.S stocks and bonds. The other method is by comparing performance of its portfolio relative to that of other tax-exempt institutions. ...
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