Cash
Cash sheets are used to record all cash movements as of which day?
The prior business day
What does NAV stand for?
Net Asset Value
What is Alpha?
Alpha (α) is a term used in investing to describe an investment strategy’s ability to beat the market, or its “edge.” Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk.
What are the 2 types of vehicles offered?
Commingled Fund Vehicle and Separately Managed Account Vehicle!
What kind of market is Argentina categorized as by MSCI (2024)?
Frontier market
Switzerland's currency, Swiss Franc, uses what 3-letter abbreviation?
CHF
When is a dividend booked?
Once a company announces they will pay a dividend in the future.
What is MSCI ACWI?
The MSCI All Country World Index (ACWI) is a global equity index that measures the equity performance in both the developed and emerging markets.
What strategy only has average daily trading volume of $1-10 million?
Emerging Markets Smaller Companies!
What is the South Korean Index called? What is the index modeled after the NASDAQ called?
Kospi and Kosdaq!
What is the difference between trade date and settle date?
Trade date is when you initiate a transaction. Settle date is when the cash moves, and securities officially trade hands.
What is the difference between local and base currency on a dividend that pays?
Local refers to the value of a dividend in the local currency it is paid in. Base refers to the value of the dividend payment converted to the base currency
What is turnover? How is it calculated?
Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by taking either the total amount of new securities purchased or the number of securities sold (whichever is less) over a particular period, divided by the total net asset value (NAV) of the fund.
Why is historical turnover relevant to clients/prospective clients?
Showing historical turnover year by year conveys proof of the strategy's commitment to having a concentrated portfolio and the investment philosophy over the years.
What is the Bloomberg Function WEI used for?
WEI stands for "World Equity Indices." This function lists out the changes and values of all world indices side by side.
What is the purpose of cash reconciliations?
To find any cash breaks between internal financial records, and financial records of custodian banks.
What is unrealized gain/loss on a foreign currency?
The increase/decrease in value of foreign currency compared to the base currency, caused by movements in foreign exchange rates.
What is an RFP?
An RFP, or Request for Proposal, is a formal document issued by an organization to solicit proposals from potential suppliers, contractors, or service providers as part of a formal selection process that helps organizations learn about multiple service providers and select the one that best meets their needs.
Why can't top and bottom 5 stocks be included in a consultant book?
It is considered advertising.
Who is the Bank of Japan (BOJ) governor?
Kazuo Ueda
Scenario:
If I purchased an equity, with a settle date 2 days after trade date, will there be a variance between WGI and the custodian's cash balance on trade date? If so, when will the variance clear?
Yes, 2 days after.
WGI reflects cash movement on trade date, custodians reflect on settlement date. Therefore, the variance would clear in 2 days after trade date (on settlement date).
What is a spin-off, and what is it considered?
A spin-off occurs when an existing public company sells a part of its assets or distributes new shares in order to create a new independent company. A spin-off is a type of corporate action.
What is attribution?
Attribution analysis is a method used in finance to quantify the performance of a portfolio and identify the sources of its returns or losses.
When was the last time the investment philosophy was altered?
Trick question! It has remained the same since inception.
This emerging country's is the biggest exporter of hazelnuts (70% globally)
Turkey