The purpose of a case is to challenge you to identify the key issues of the decision situation at hand. Here are a few pointers:
· What are key objectives of OTPPB?
· Why is the OTPPB reevaluating the asset mix policy?
· Who are key stakeholders? What are their key concerns? Are their interests always in line?
· What are the OTPPB stated objectives/ targets/ goals?
· What type of pension plan is it? What are key assumptions? What are the main unique challenges that OTPPB face?
· How critical is the 4.5% real return?
· How are different asset classes defined? Why were those particular classes chosen? Should they use more asset classes now?
· What is main result of “new” asset allocation strategy?
· What is the purpose of efficient frontier analysis? Critique consultant’s report, their assumptions and their findings.
· Please do your own sensitivity analysis. State all assumption you made. What are the results of sensitivity analysis?
· Describe key risks the OTPPB needs to consider when determining its diversification strategy.
· As Mr. Booth, what additional analysis (if any) would you do at this point? What would you recommend to the board?
· What the main concerns of the board might be?
Please, do not answer these questions one by one. Instead, use them only as ways to prime your own analysis. You may then organize and draft your results in whichever way you see fit. If you feel that you have to make any assumptions, please do it by stating them clearly in your report.
Please note: Those questions are designed to guide you to important points in your analysis. What is important and what is not is up to you to determine and is part of a challenge for this case.
I expect the report to be no longer than 7 pages + Excel spreadsheets.