Please answer in 2-3 paragraphs about the scenario below thank you. I am posting
ID: 451273 • Letter: P
Question
Please answer in 2-3 paragraphs about the scenario below thank you. I am posting the same question twice because I prefer answers from 2 different experts.. thanks John is a portfolio analyst for Metropolitan City Teachers’ Retirement Fund (MCTRF). His boss, Mary, has asked him to compare one of MCTRF’s external growth stock portfolio managers, Bill Fredericks, against Growth Unlimited (GU) and make a recommendation. Mary sees some impressive numbers in GU’s performance over the last three years. In fact, John normally evaluates fund managers based on a three-year record. However, this time he is considering a different approach. Bill Fredericks was actually slightly ahead of GU during last quarter. In addition, John and Bill have become close friends. Bill has helped John with several projects apart from growth stock investing and has arranged for John and his staff to attend some of Bill’s educational seminars without cost to MCTRF. Analyze John’s decision from a virtue ethics perspective. Which recommendation(s) pass the virtue ethics test?
Explanation / Answer
Virtue ethics perspective puts emphasis on the kind of person, rather than particular acts, consequences and rules. John is also putting emphasis on the character of Bill Fredericks, while making the decision, instead of stricting conducting an objective analysis of Bill's portfolio performance.
While three year's annualised return by Growth Unlimited is much high as compared to Bill Fredericks, John has assessed Bill's portfolio performance nearly equivalent to Growth Unlimited's over a seven-year period.
John's analysis of Bill's performance, despite he and MCTRF having emphasised historic performance, is in the backdrop of Bill helping John in his professional development and educational seminars for his staff. Very clearly John's recommendation of not terminating Bill's firm passes the virtue ethics test.