8 - portfolio performance and review

Question 1

stock market weighting indices

Answer 1

price weighted - equal no. of shares in each company - Nikkei, DJIA
market value weighted - relative market cap weighting - FTSE100, NASDAQ
equal weighted - equal money val in each share (MSCI USA)

Question 2

composite benchmarks

Answer 2

customized to match a funds asset allocation
PIMFA have 5 (conservative, income, growth, balanced, global growth) that are reviewed quarterly

Question 3

peer group averages

Answer 3

benchmark services to fund managers based on:
-aggregation of all funds, those with similar briefs, similar owners, sector subgroups

WM - world markets
CAPS - combined actuarial performance services
2 agencies that provide

Question 4

what does GIPS do

Answer 4

global investment performance standards
developed by CFA institute 1999 enhanced in 2005
voluntary investment presentation standards to improve comparability for prospective clients