Construction Portfolio Flashcards

1
Q

About construction portfolios

RR TTLLU

A

RR - OBJECTIVES
R eturn
R isk

LLTTU - Constraint

L egal
L iquidity
T ax
T ime horizon
U nique characteristics

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2
Q

Tactical Asset Allocation

A

Deviating from a portfolio target

SHORT TERM

Take advantage of arbitrage opportunities

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3
Q

Strategic asset allocation

A

Determining the target asset allocation %

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4
Q

Rebalancing

A

Rebalancing is periodically adjusting a portfolio

BACK to it’s target allocation

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5
Q

(IPS MAJOR) Investments Guideline provides:

A

Information about
1.how policy may be executed (including constraints)

  1. Restrictions of permissible leverage
  2. Derivatives
  3. Types of assets excluded
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6
Q

(IPS MAJOR) Stamens of duties and Responsibilities
Provides: (3)

A

Details the duties and responsibilities

Of the client

The custodian

The manager

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7
Q

(IPS MAJOR) Investment Objectives

A

Explaining the clients objectives in investing

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8
Q

What the procedures fase detail? (2)

A

Steps to be taken to keep the IPS

How to respond contingencies

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9
Q

Risk assessment is related to capacity or willingness?

A

Willingness.

Subjective factor of risk attitude

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