Construction Portfolio Flashcards
About construction portfolios
RR TTLLU
RR - OBJECTIVES
R eturn
R isk
LLTTU - Constraint
L egal
L iquidity
T ax
T ime horizon
U nique characteristics
Tactical Asset Allocation
Deviating from a portfolio target
SHORT TERM
Take advantage of arbitrage opportunities
Strategic asset allocation
Determining the target asset allocation %
Rebalancing
Rebalancing is periodically adjusting a portfolio
BACK to it’s target allocation
(IPS MAJOR) Investments Guideline provides:
Information about
1.how policy may be executed (including constraints)
- Restrictions of permissible leverage
- Derivatives
- Types of assets excluded
(IPS MAJOR) Stamens of duties and Responsibilities
Provides: (3)
Details the duties and responsibilities
Of the client
The custodian
The manager
(IPS MAJOR) Investment Objectives
Explaining the clients objectives in investing
What the procedures fase detail? (2)
Steps to be taken to keep the IPS
How to respond contingencies
Risk assessment is related to capacity or willingness?
Willingness.
Subjective factor of risk attitude