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Case
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Reference no. 9B09N022
Published by: Ivey Publishing
Originally published in: 2009
Version: 2009-10-27
Length: 13 pages
Data source: Field research

Abstract

In October 2008, the senior vice-president for product and business development at IA Clarington (IAC), a life and health insurance company, was preparing for a meeting with the president of IAC. The topic of discussion would be IAC''s Target Click Fund, a mutual fund with an options-based guarantee structure targeted towards investors who were looking for growth along with capital preservation. The vice-president had been asked to render his opinion of whether he thought that the fund''s scheduled rebalancing date should be accelerated in order to take advantage of a historic decline in global equity markets. The vice-president had to consider several pieces of information in making his recommendation, including that fact that his main competitors would be quick to take advantage of any misguided recommendation. He wondered if the markets had truly hit bottom, and how / if he could time the rebalancing to the lowest point. Also, the investment philosophy behind IAC and click funds encouraged investors to remain invested during turbulent times: what would changing the rebalancing date indicate to those investors?
Location:
Size:
Large
Other setting(s):
2008

About

Abstract

In October 2008, the senior vice-president for product and business development at IA Clarington (IAC), a life and health insurance company, was preparing for a meeting with the president of IAC. The topic of discussion would be IAC''s Target Click Fund, a mutual fund with an options-based guarantee structure targeted towards investors who were looking for growth along with capital preservation. The vice-president had been asked to render his opinion of whether he thought that the fund''s scheduled rebalancing date should be accelerated in order to take advantage of a historic decline in global equity markets. The vice-president had to consider several pieces of information in making his recommendation, including that fact that his main competitors would be quick to take advantage of any misguided recommendation. He wondered if the markets had truly hit bottom, and how / if he could time the rebalancing to the lowest point. Also, the investment philosophy behind IAC and click funds encouraged investors to remain invested during turbulent times: what would changing the rebalancing date indicate to those investors?

Settings

Location:
Size:
Large
Other setting(s):
2008

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