Sun Life Capital Management Portfolio Management Case Competition
September 2024
In September 2024, I participated in the SLC Management Portfolio Management Case Competition. The challenge was to devise a strategy to help a USD 500M pension fund recover from recent volatility in the equities market over a 5-year period. The goal was to maximize portfolio returns on a risk-adjusted basis using ETFs, while navigating challenges such as liquidity, currency exposure, and limited back-testing opportunities.
The competition emphasized the application of macroeconomic analysis, security analysis, portfolio risk management, and strategy construction. Teams of 3-4 members were tasked with submitting a detailed macro thesis, portfolio allocation, and a presentation that demonstrated analytical rigor, insight generation, and risk management. Our team crafted a differentiated investment strategy for the Workers Pension Fund with a focus on managing risk and capturing opportunities in an evolving economic landscape.
The strategy featured a dynamic approach, combining active equity management, flexible bond strategies, and targeted risk management techniques.
Key Strategic Insights
- Active Equity Management: Sector rotations emphasized energy, technology, and emerging markets, with a strong focus on clean energy and AI-driven growth.
- Fixed Income & Alternative Investments: We applied a barbell strategy combining high-yield bonds with flexible duration management, optimizing returns while mitigating interest rate risks.
- Risk Management: A dynamic hedging strategy was implemented, utilizing derivatives to protect against market downturns and inflation risks. A diversified portfolio structure helped ensure resilience.
Macro Themes and Investments
- Emerging Markets: India and China were identified as key growth drivers due to strong GDP projections, demographic trends, and significant infrastructure investments. We recommended currency-hedged ETFs (HEEM) for exposure to these markets.
- Renewable Energy: We capitalized on the global push for clean energy by investing in Uranium and other renewable energy sources, with a focus on long-term infrastructure returns.
- AI and Technology: We leveraged the rise of AI applications to identify companies poised for growth in the technology and robotics sectors, recommending BOTZ for AI-driven investments.
The competition strengthened my ability to craft strategic, data-driven investment plans, manage risks effectively, and make informed decisions that align with long-term growth objectives.
