IM QS focused Flashcards
Name the four themes?
Technological Advancement, Demographics & Consumer Preferences, Climate Change, Infrastructure Renewal DIC T
What are the segregated services for MIS? N.B segregated services are now called INVESTMENT STRATEGIES All - AA
Global Emerging Markets, Global Smaller Companies, Global Technology Innovation, Large Cap Global Equity, Global Mid Cap Equity, PMS, Sustainable PMS, Special Situations
How might rising interest rates impact different types of investments?
Equities: Could decline as borrowing costs rise.
Bonds: Prices fall as interest rates increase.
Property: Demand may decrease due to higher mortgage costs
how does inflation and interest rates affect bonds
Interest Rates & Bonds:
When interest rates rise, bond prices fall because new bonds offer higher yields, making existing bonds with lower yields less attractive.
When interest rates fall, bond prices rise because existing bonds with higher yields become more valuable.
Inflation & Bonds:
Inflation erodes the purchasing power of future bond payments, reducing their attractiveness.
If inflation rises, investors demand higher yields, causing bond prices to drop.
Inflation-indexed bonds (like TIPS in the U.S.) offer some protection against this.
how does inflation and interest rates affect equities
Stocks are affected by both inflation and interest rates, but the impact depends on the type of stock and economic conditions.
Interest Rates & Equities:
Higher interest rates increase borrowing costs for companies, reducing profits and stock valuations.
Investors may shift from stocks to bonds since bonds become more attractive when yields rise.
Growth stocks (like tech) are hit harder because their valuations depend on future cash flows, which are more heavily discounted when rates rise.
Value stocks (established companies with steady earnings) tend to perform better in rising rate environments.
Inflation & Equities:
Moderate inflation can be good for stocks because it signals economic growth.
High inflation erodes consumer purchasing power and raises costs for businesses, reducing profit margins.
Some sectors, like energy, commodities, and consumer staples, perform better during inflationary periods since they can pass on higher costs to consumers.
Stocks can be mixed—high inflation and rising rates hurt growth stocks more than value stocks.
Themes
Tech Advancement
Demographics and Consumer Preferences
Climate Change
Infrastructure Renewal
e Commerce and payments
Amazon
Future Healthcare
AstraZeneca
Renewables
Linde
Physical Infrastructure
Rio Tinto
Who is the Custodian of Killik funds
Platform Securities
(FIS)
What do Platform Securities do
settlement
client money and asset protection
transaction reporting
provide access to markets
custodians of Platform securities
CREST UK
Uk stock held within platform securities
UBS US
Main types of settlement
DVP - delivery versus payment
How many stocks in global large cap
9
How many core stocks
12
Min sectors in the Global Large Cap
7
Max exposure to one equity
10%
Max exposure to one sector
30%
When does the US market open
2.30
FSCS limit on stocks
(same as cash)
£85k per person per firm
When would they have had to invest to have completed 2 market cycles
Feb 2020 one cycle
Dec 2021 - start of next cycle
We do thematic investing which is
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