Flashcards in Centralised Investment Process Deck (3)
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1
Q
Explain what is meant by a Centralised Investment Proposition (5)
A
- standard investment approach
- segmenting clients into risk categories
- model portfolio/ assets allocations
- based on investment theory
- periodic reviews
2
Q
Advantages of Centraliaed Investment Process (3)
A
- eliminates portfolio drift
- removes advisor bias
- matches ATR
3
Q
Disadvantages of Centraliaed Investment Process (3)
A
- one size fits all
- additional taxation due to higher portfolio turnover
- past data underpinning model portfolios maybe incorrect
