Allocation/Asset Class
What are the two deciding factors in determining your asset allocation?
Time Horizon and Risk Tolerance
What is the objective of a managed fund?
Beat the respective benchmark
Which management style has lower fees?
Passive
Asset management supports which two segments?
Wealth and C&IS
Name the five different asset classes we discussed.
Cash, Bonds, Alternatives, Equities, Commodities.
A Stock Index is maintained by a ____.
Stock Exchange.
Over the last 10 years, flows have been going into ___ managed products and out of ___ managed products
passive, active
Northern clients typically fall into this category:
High Net Worth and Ultra High Net Worth
What is asset allocation?
1. Asset allocation is the division between different asset classes.
2. The process of determining which mix of assets to hold.
3. Allocation will depend on the time horizon and sensitivity to risk.
A ____ will only have a fixed number of stocks.
Stock Index
What is the objective of a stock index fund?
Match the respective benchmark
The goal of asset management
support C&IS and Wealth
Creates fund products and provides investment related advice
My volatility makes me a very risky investment in the short term, however if investors hold me over a long period of time I generally reward them with strong positive returns. What asset class would I traditionally fall under?
Equities/Stocks
If you are invested in a manager fund. Should you expect for your fees to be higher or lower than the stock index?
Higher
Approx. number of stocks in the Nasdaq index
100
IPC uses what type of data during their asset allocation process
Macroeconomic
What does it mean to diversify your portfolio?
The key is to identify investments in segments of each asset category that may perform differently under different market conditions.
Jacob has $100 to invest in either a stock index or a mutual fund. If he chooses the S&P 500 as his benchmark and is looking match the benchmark. Which product is he more likely to invest in?
Stock Index - the objective is to match the respective benchmark
Average equity mutual fund expense ratio in 2017
approx. 60 bps
Wealth Management has approx. ___ AUM
$260 billion