Asset allocations of University Investments. Accounting, Finance, SPSS

Asset allocations of University Investments
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Assume you are the chief investment officer of the University Investments Office and are managing an endowment of $1.4 billion on behalf of the university. What does your ASSET ALLOCATION look like for 2020? How much are you allocating to private equity and venture capital investments and why? What are the percentages of your other asset allocations and why? Do the current market conditions factor into your any of your recommendations and, if so, how?

Private equity and venture capital investments allocations
In 2020, 50% of the funds are invested in equity, 20% in venture capital investments 10% in bonds, 15% in real estate and 5% cash. Private equity is under the equity category, and would allocate 20% with the other 30% between the U.S. equities at 15%, non US equities at 10% and 5% in the emerging equities. From the $1.4 billion endowment, private equity would be allocated $ 280 million and venture capital investments would be allocated $ 280 million at 20% portfolio for each investment. There is 20% allocation of the endowment is venture capital investments where there are investments in high risk and high return ventures with growth potential.
Percentages of other asset allocations
There is a high concentration of equity as they have higher returns even as the equity market is v...