Investment (33)

Question 1

Investment strategy is NB

Answer 1

– financial result
– commercial success
– security

Question 2

Asset characteristics

Answer 2

– return
– security
– marketability
– expenses
– term
– currency

Question 3

Investment constraints

Answer 3

– statuatory
– min investment size

Question 4

Return

Answer 4

– expected
– real / nominal
– income / capital gain
– (running yield)
– variance
– tax

Question 5

Investment types

Answer 5

– government fixed-interest bonds
– government ILB
– corporate bonds
– equities
– property
– cash

Question 6

Investment principles

Answer 6

– min risk & appropriate given cunt
– max overall return
– free A (departure from matching cunt)

Also
– consider ESGs
– max return @ acceptable risk
– financial resources = risk level

Question 7

Nature of liabilities

Answer 7

guaranteed in terms of
– money
– index

discretionary (with-profits)

investment-linked

Question 8

immunisation issues

Answer 8

– profit & losses
– difficult against real liabilities
– only small change in interest fluc
– flat yield curve
– re-analyse daily
– A term may not exist
– timing A/L unknown

Question 9

Bonus declaration

Answer 9

– bonus philosophy
– free asset level
– risk appetite
– published investment strategy
– co views

Question 10

Investment list

Answer 10

1. Investment principles
2. PRE
3. Free asset level
4. A characteristics
5. A competitors
6. Tax
7. Regulatory
8. Terminal vs regular bonuses