Investment - Asset Allocation and Portfolio Construction
Investment - Asset Allocation and Portfolio Construction After generating the investment policy statement (IPS), which comprises -- among other facts -- an investor’s desire and ability to take risk, the asset allocation of the portfolio is defined. This
Investment - Risk and Portfolio Diversification
Investment - Risk and Portfolio Diversification An investment policy statement (IPS) captures information about a customer and the client’s needs. The IPS provides as a reference to what is demanded of and what is acceptable in the investment portfolio.
Investment - Investment Policy Statements
Investment - Investment Policy Statements It is good practice to record information about the client and the client’s needs in an investment policy statement (IPS). An IPS, for both individual and institutional investors, acts as a guide for the investor
Investment - Factors that Affect Investors' Needs
Investment - Factors that Affect Investors' Needs Investors -- whether individual or institutional -- have distinct investment objectives. Key factors that are universal to all investors, but that will vary in amplitude for each investor, include the follow
Investment - Types and Characteristics of Investors
Investment - Types and Characteristics of Investors Introduction to Investor Types Investors are not a homogeneous group; both individual and institutional investors have diverse features. Clients differ in terms of their financial resources, objective
Investment- Alpha
Investment- Alpha Skill vs. Luck If each person in a roomful of people randomly buys 10 stocks and holds them for five years, some of those persons may see the value of their investments rise. Does this suggest that they are skilful investors? At the sam
Investment- Performance Attribution
Investment- Performance Attribution Benchmarks constitute the basis of performance measurement, which is an important aspect of performance evaluation. By comparing the performance of a UK equity fund with the performance of an appropriate UK equity inde
Investment- Risk-Adjusted Returns
Investment- Risk-Adjusted Returns Most investors aim to gain as much profit as possible for as little risk as feasible. Therefore, if two investments have a total return of 10% and the first investment has very little risk while the second one is quite da
Investment -Benchmarks and Relative Returns
Investment -Benchmarks and Relative Returns Benchmarks and Relative Returns By measuring relative returns -- that is, returns compared to an appropriate benchmark -- investors can decide if they could have made more money in other investments for a simil
Investment- Tracking Error and Information Ratio
Investment- Tracking Error and Information Ratio The tracking error of a fund reveals how the performance of the fund deviates from the performance of its benchmark. The tracking error so informs you how much active risk the manager took. The trackin