Investing in the Future

Stage 2 (2021) “Investing in the Future”


A bequest of $5,000,000 left by a wealthy great-aunt is given for creating a legacy by providing bursaries to promising scholars at a nearby school.

The case presents a challenge of managing the bequest by focusing on longevity, and ensuring that the capital is preserved and the interest yields higher returns than the education price index to support scholars for the duration of their time at the school. It is also necessary to find the optimal portion of interest and capital to disburse from the long-term investment account to maximize the number of scholars receiving bursaries over the long-term.

This is an actual case from the Financial Modeling World Cup 2021, Stage 2 (Feb 19-22) competition. The downloadable file consists of the following:
Task: Excel file with given case assumptions; PDF file with Case Materials; PDF file with Questions.
Solution: Excel file with the full Solution Model; PDF file with correct Answers in Bold.

This model awarded 350 points + 100 Extra points for the bonus questions, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at