Red Super is a public offer superannuation fund. One of its product offerings included the “Accumulator Option” whose investment strategy specifically forbade the use of derivatives. Inadvertently, the fund manager did use derivatives to an extent. With adverse market conditions, this resulted in investment losses of $64 million. Advise the trustees of Red Super what they should do with respect to compensation to members and any recourse they may have against the investment manager that made the investments.
Red Super is a public offer superannuation fund. One of its product offerings included the “Accumulator Option” whose investment strategy specifically forbade the use of derivatives. Inadvertently, the fund manager did use derivatives to an extent. With adverse market conditions, this resulted in investment losses of $64 million.
Advise the trustees of Red Super what they should do with respect to compensation to members and any recourse they may have against the investment manager that made the investments.
The best investment strategy should be made by keeping in mind the market conditions. The strategy always made by the individuals by looking at the returns which are always attractive for short term period only.
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