Construction Portfolio

Question 1

About construction portfolios

RR TTLLU

Answer 1

RR - OBJECTIVES
R eturn
R isk

LLTTU - Constraint

L egal
L iquidity
T ax
T ime horizon
U nique characteristics

Question 2

Tactical Asset Allocation

Answer 2

Deviating from a portfolio target

SHORT TERM

Take advantage of arbitrage opportunities

Question 3

Strategic asset allocation

Answer 3

Determining the target asset allocation %

Question 4

Rebalancing

Answer 4

Rebalancing is periodically adjusting a portfolio

BACK to it’s target allocation

Question 5

(IPS MAJOR) Investments Guideline provides:

Answer 5

Information about
1.how policy may be executed (including constraints)

2. Restrictions of permissible leverage
3. Derivatives
4. Types of assets excluded

Question 6

(IPS MAJOR) Stamens of duties and Responsibilities
Provides: (3)

Answer 6

Details the duties and responsibilities

Of the client

The custodian

The manager

Question 7

(IPS MAJOR) Investment Objectives

Answer 7

Explaining the clients objectives in investing

Question 8

What the procedures fase detail? (2)

Answer 8

Steps to be taken to keep the IPS

How to respond contingencies

Question 9

Risk assessment is related to capacity or willingness?

Answer 9

Willingness.

Subjective factor of risk attitude