Portfolio Performance & Review

Question 1

What benchmarks do pensions funds use?

Answer 1

Combined Actuarial Performance Services (CAPS) or World Markets (WM) averages

Question 2

What is the main benchmark for wealth management?

Answer 2

The MSCI PIMFA Private Investor Index Series

(Conservative, Income, Balanced and Growth)

Question 3

How much of the UKs market cap it in the FTSE 100

Answer 3

80%

Question 4

How much of the UKs market cap it in the FTSE ALL SHARE

Answer 4

98% of the UK’s market capitalisation

It is considered to be the best performance measure for the overall London equity market and is the basis for a wide range of investment-tracking products.

Question 5

How much of the US market cap is in the DJI?

Answer 5

25% of the total US equity market

Question 6

How much of the US market cap is in the S&P500?

Answer 6

provides coverage of approximately 75% of US equities that trade on the NYSE and Nasdaq

Question 7

Wha

What is the FTSE4Good Index Series?

Answer 7

measures the performance of companies that meet globally recognised corporate responsibility standards

Question 8

What is the hit rate and what does it tell you?

Answer 8

• a ratio that calculates the number of successful trades by dividing the difference in the number of winning and losing investments over a given period by the total number of stocks purchased
• it does not indicate which one has applied more skill in trading, only the fraction of the investments that have been sold at a profit.

Question 9

What is the HPR in domestic currency for overseas investments?

Answer 9

HPR in base ccy = [( 1 + HPR in overseas CCY)( 1 + HPR in base CCY)] -1