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IBET Pension Fund - Case Solution

This IBET Pension Fund case study provides a valuation of the properties and presents a recommendation for a strategy of managing the portfolio.

Arthur I Segel
Harvard Business Review ( 800133-PDF-ENG )
November 03, 1999

Case questions answered:

  1. Determine the value of each property.
  2. Provide valuation analysis.
  3. Make a recommendation on whether to hold, buy, or sell the property.
  4. Write a 2-page memorandum and suggest a strategy for managing the portfolio.

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IBET Pension Fund Case Answers

Excel calculations This case solution includes an Excel file with calculations.

MEMORANDUM

To: Board of Trustees Subject: Recommendation for IBET Pension Fund Portfolio Strategy

IBET Pension Fund

The portfolio strategy is drafted based on the portfolio summary table prepared in order to determine which properties are performing well in the portfolio and which property is performing poorly so that a suitable strategy for managing the property can be introduced to maximize the benefit for the beneficiary of pension funds.

The market value of the properties is determined based on the income approach method in which the cash flow from operations is taken in the numerator, and the capitalization rate is taken as the denominator to determine the potential market value of the property according to the cash flows generated by the particular property.

According to the strategy of portfolio summary, various properties are subject to…

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