I think there might have been a thread like this posted before but I just can’t seem to find it, if someone knows where to find it please let me know, thanks.
Basically there’s a question in CFAi for choosing the portfolio best suited for the pension plan of a high-tech company. In the IPS, the client states that the investment portfolio should focus on “businesses directly related” to the “main business” to leverage their knowledge base.
I thought that means we should choose a portfolio that’s similar to client’s business (i.e. more high tech investments), but the answer says to pick a more conservative portfolio, the one that is less correlated with client’s business.
I understand the answer, but wonder if we should still respect the client’s wishes? Is this the case where we should discuss with the client how the IPS doesn’t make sense for them?作者: svgleeson 时间: 2013-4-17 18:42
