Chapter 11

Question 1

Who bring the product to the market?

Answer 1

Project management committee

Question 2

Cash position in minic benchmark weight

Answer 2

1 to 2 %

Question 3

Backtesting is not required when

Answer 3

Hiring an investment manager from another firm with track record

Question 4

Short selling max in mutual firm

Answer 4

20 %

Question 5

Hedge fund and private equity funds

Answer 5

Do not require a prospectus, need a memorendum, filed by a regulator but does not need regulator’ s approval

Question 6

Who is responsable for the approval?

Answer 6

The new product development committee

Question 7

How many analyses for a proforma financial projection

Answer 7

2 analyses

Question 8

Timeline for setting the service provider

Answer 8

Up to six months

Question 9

Fund manager and PF mgr are

Answer 9

Separated entities under same control

Question 10

Performance benchmark for MF

Answer 10

Market based index

Question 11

Pro format financial projection

Answer 11

On annual basis for 5 years and more

Question 12

Required skills to manage a new product

Answer 12

Backtest

Question 13

Rebalancing portfolio

Answer 13

Manager use their own investment model

Question 14

3 primary performance benchmark

Answer 14

Peer, market index, absolute returns

Question 15

Investment guidelines are reviewed

Answer 15

Annually and modified infrequently

Question 16

Institutal manager are compared with

Answer 16

Other institutional managers

Question 17

Exempt market benchmark

Answer 17

Absolute return

Question 18

Time perod between decision and launch

Answer 18

3 to 4 months

Question 19

Time period between to be approve by regulators

Answer 19

4 to 8 weeks