Investment Foundations case studies
Investment Foundations · Put your knowledge to work in context.
The Investment Foundations Certificate is a self-paced online program from CFA Institute that gives a broad, practical overview of how the investment industry works. It is aimed at three groups: students exploring finance for the first time, professionals outside the industry who want greater financial fluency, and people already in support roles inside investment firms who want to deepen their knowledge. The Investment Foundations case studies are 5 cases and about 2,689 words.
1Fee Compression at a Regional Asset Manager
Meridian Ridge Asset Management runs 1.4 billion across three equity funds and one balanced fund. Its largest fund, a 42-holding large-cap strategy, charges 68 basis points but competes against index funds at 5 basis points and model portfolios priced at 18 basis points.
622 words, about 3 min2Selling a Large Block Before an Index Rebalance
You are a trader at a mid-sized investment manager and must sell 2.4 million shares of Kestrel Industrial over five trading days. The stock trades at $42.60, average daily volume is 1.1 million shares, and the quoted spread is 9 basis points.
540 words, about 3 min3Convertible Bond for a Family Office
A family office is considering a 5 million allocation to a 5-year convertible bond issued by a mid-cap technology company. The bond pays a 3.25% coupon, is convertible at a 32% premium to the current 40 share price, and is callable after year three at par.
522 words, about 3 min4Foundation Performance and Private-Asset Allocation
A $220 million foundation's portfolio returned 9.6% last year, while its policy benchmark-60% global equity, 35% investment-grade bonds, 5% cash-returned 8.4%. The foundation's spending rule is 5% of a three-year average market value, and inflation is 2.5%.
452 words, about 2 min5Concentrated Stock and Liquidity for an Executive Client
A 58-year-old executive has 6.2 million net worth: 2.9 million in employer stock with a 300,000 cost basis, 1.8 million in a diversified 401(k), 900,000 in a taxable brokerage account, and 600,000 in cash. She plans to retire in seven years, needs 450,000 in 12 months for a home renovation, and wants to leave 1 million to a charity at death.
553 words, about 3 min