In: Finance
Assume that GMMC has investments in a Building Replacement Fund with the following balances as of 4/30/20 listed by category. The Investment Committee of the Board has approved a recommendation to reallocate these funds, and to include for the first time common stocks from non-US companies. Assume that the portfolio will be rebalanced on June 1, 2020 to equal the Board's targeted desired allocation percentages.
GMMC
Recommended Asset Allocation for Building Replacement Fund
Rebalancing of Investment Portfolio as of June 1, 2020
Balance on Current Future Desired Re-balanced
Investment Description 4/30/2020 Allocation % Allocation
Amounts
Cash and Cash Equivalents $ 6,000,000 4.7% 4.0% ?
Fixed Income - Domestic Bonds $42,000,000 32.8% 33.0% ?
Fixed Income - International Bonds $15,000,000 11.7% 10.0% ?
Equities - Large Cap Value $28,000,000 21.9% 22.0% ?
Equities - Large Cap Growth $17,000,000 13.3% 18.0% ?
Equities - Mid/Small Cap Value $12,000,000 9.4% 4.0% ?
Equities - Mid/Small Cap Growth $8,000,000 6.3% 4.0% ?
Equities - International - ----- 0.0% 5.0% ?
Total $ 128,000,000 100.0% 100.0% $ 128,000,000