Problem 3 (13 marks) UQEF is responsible for managing the University endowment fund. The actively managed Fund invests broadly in three asset classes: Australian domestic equities, international equities, and cash. The Fund is benchmarked against the International Balanced Index (IBI). Use information in the table below about UQEF and IBI's fund allocations and asset class returns for the most recent year to answer the two questions followed. UQEF IBI Fund Return on each asset Fund allocation Return on each asset class allocation class Domestic equities 30% 10% 35% 12% International equities 60% 15% 55% 20% Cash 10% 0.25% 10% 0.25% Total: 100% 100% A. How has UQEF performed relative to IBI during the year? (5 marks) B. Discuss the strengths and weaknesses of UQEF in terms of asset allocation and security selection. You discussion should be supported by its recent performance. (8 marks) Problem 3 (13 marks) UQEF is responsible for managing the University endowment fund. The actively managed Fund invests broadly in three asset classes: Australian domestic equities, international equities, and cash. The Fund is benchmarked against the International Balanced Index (IBI). Use information in the table below about UQEF and IBI's fund allocations and asset class returns for the most recent year to answer the two questions followed. UQEF IBI Fund Return on each asset Fund allocation Return on each asset class allocation class Domestic equities 30% 10% 35% 12% International equities 60% 15% 55% 20% Cash 10% 0.25% 10% 0.25% Total: 100% 100% A. How has UQEF performed relative to IBI during the year? (5 marks) B. Discuss the strengths and weaknesses of UQEF in terms of asset allocation and security selection. You discussion should be supported by its recent performance. (8 marks)