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PPM > Limits and Guidelines > Flashcards

Limits and Guidelines Flashcards

1
Q

What is the Defensive Upper limit for Property?

A

10%

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2
Q

What is the Defensive Upper limit for Australasian Equities?

A

20%

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3
Q

What is the Defensive Upper limit for International Equities?

A

10%

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4
Q

What is the Defensive Upper limit for Specialty Investments?

A

10%

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5
Q

What is the Defensive Upper limit the equity/property/specialty to bond ratio?

A

20%

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6
Q

What is the conservative Upper limit for Property?

A

15%

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7
Q

What is the conservative Upper limit for Australasian Equities?

A

30%

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8
Q

What is the conservative Upper limit for International Equities?

A

20%

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9
Q

What is the conservative Upper limit for Specialty Investments?

A

10%

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10
Q

What is the conservative Upper limit for the equity / property / specialty to bond ratio?

A

45%

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11
Q

What is the balanced Upper limit for Property?

A

20%

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12
Q

What is the balanced Upper limit for Australasian Equities?

A

40%

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13
Q

What is the balanced Upper limit for International Equities?

A

35%

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14
Q

What is the balanced Upper limit for Specialty Investments?

A

15%

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15
Q

What is the balanced Upper limit for the equity / property / specialty to bond ratio?

A

65%

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16
Q

What is the growth upper limit for Property?

A

20%

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17
Q

What is the growth upper limit for Australasian Equities ?

A

50%

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18
Q

What is the growth upper limit for International Equities ?

A

50%

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19
Q

What is the growth upper limit for Specialty Investments ?

A

20%

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20
Q

What is the growth Upper limit for the equity / property / specialty to bond ratio?

A

90%

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21
Q

What is the growth plus upper limit for Property?

A

20%

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22
Q

What is the growth plus upper limit for Australasian Equities ?

A

60%

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23
Q

What is the growth plus upper limit for International equities ?

A

60%

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24
Q

What is the growth plus Upper limit for Specialty Investments ?

A

25%

25
Q

What is the growth plus Upper limit for the equity / property / specialty to bond ratio?

A

97.5%

26
Q

The recommended equity sector limit upper limit is …

A

15%

27
Q

It is recommended that the largest 10 equity holdings not exceed…

A

50% of the total portfolio value

28
Q

Portfolio risk and portfolio returns are directly related expressions of

A

Portfolio variance

29
Q

Investment authority upper limits are Hard limits, not ….

A

recommended weightings

30
Q

For the growth portfolio, a best practice upper limit is ….

A

85%

31
Q

There are ten different PPM alert types, three of which apply to the portfolio investment authority, which are those three PPM alerts?

A

Stock/Bond (growth) overweights , Security Issuer Limits, Fixed Interest Sector Limits

32
Q

What is the Security limit for index members of NZX 50 , ASX 200 etc and equity weekly select lists and portfolios?

A

10%

33
Q

What is the security limit for non-index / property securities?

A

5%

34
Q

Non index securities may also be PPM approved under the following circumstances:

A

Issued by way of sale of a division, As individually approved and where purchased as index member?

35
Q

What is the Issuer and Sector limit for Government FI securities (Category 1) ?

A

Issuer limit 100%
Sector Limit 100%

36
Q

What is the Issuer and Sector limit for Local Body, SOE and Related (Category 2) ?

A

Issuer limit 35%%
Sector Limit 75%

37
Q

What is the Issuer and Sector limit for Local Body, SOE and Related, subordinated (Category 3) ?

A

Issuer limit 15%
Sector Limit 50%

38
Q

What is the Issuer and Sector limit for Bank Securities A+ Unsubordinated (Category 4) ?

A

Issuer limit 30%
Sector Limit 75%

39
Q

What is the Issuer and Sector limit for Bank Securities Unsubordinated or sub (BBB - A- ) (Category 5) ?

A

Issuer limit 20%
Sector Limit 40%

40
Q

What is the Issuer and Sector limit for Corporates and other (=A+(Category 6) ?

A

Issuer limit 20%
Sector Limit 50%

41
Q

What is the Issuer and Sector limit for Corporates and other (BBB - to A+(Category 7) ?

A

Issuer limit 15%
Sector Limit 35%

42
Q

What is the Issuer and Sector limit for unrated corporates (Category 8) ?

A

Issuer limit 10%
Sector Limit 15%

they are subject to individual security approval

43
Q

What is the Issuer and Sector limit for unrated corporates subordinated (Category 9) ?

A

Issuer limit 5%
Sector Limit 10%

they are subject to individual security approval

44
Q

What is issuer and sector limit , Deposit A+ Bank (Category 10) ?

A

Issuer limit 50%
Sector Limit 75%

45
Q

What is issuer and sector limit , Deposit BBB -A- Bank? (Category 11)

A

Issuer limit 15%
Sector Limit 30%

46
Q

What is issuer and sector limit for FI managed funds ? (Category 12)

A

Issuer limit 30%
Sector Limit 100%

47
Q

What is the security limit and issuer limit for Investment trust (listed)?

A

Security limit 10%
Issuer Limit 30%

48
Q

What is the security limit and issuer limit for Managed Funds (unlisted)?

A

Security limit 10%
Issuer Limit 30%

49
Q

What is the security limit and issuer limit for Multi sector managed funds ?

A

Security limit 10%
Issuer Limit 20%

50
Q

What is the security limit and issuer limit for Specialty Managed Funds ?

A

Security limit 7.5%
Issuer Limit 10%

51
Q

What is the security limit and issuer limit for Specialty PEFs ?

A

Security limit 7.5%
Issuer Limit 10%

52
Q

What is the security limit and issuer limit for Specialty PEFs ?

A

Security limit 5%
Issuer Limit 10%

53
Q

What are the related entity limits for unrated corporates plus equity / property security issuers?

A

Issuer limit of 10%

54
Q

What are the related entity limits for the same Fixed interest issuer ?

A

Limit = Limit for the most senior fixed interest security held

55
Q

What are the related entity limits for Deposits plus unrated corporates?

A

Issuer limit 30%

56
Q

What are the related entity limits for Equity (or Property Equity) related securities

A

Issuer limit 10%

57
Q

What is best practice for where to buy securities?

A

On its home exchange

58
Q

When re-weighting within an upper limit, what is best practice for re-weighting?

A

Bring the weighting at least 20% below the upper limit

59
Q

What is best practice for the usage of unrated corporate bonds?

A

Invest up to 50% of the upper limit in typical circumstance or what is deemed practical from a client risk perspective

PPM (2 decks)

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