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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