Chapter 4 Pmt

Front 1

Who are the competitors of institutional investment managers?

Back 1

Life insurance companies and mutual fund companies

Front 2

Most institutional investment management firms have, blank space, advertising budgets since they are not attempting to build brand name recognition with individual investors

Back 2

Insignificant

Front 3

What kind of investments institutional investment managers offer nowadays which constitutes their largest mandate?

Back 3

Canadian balanced fund

Front 4

What's the largest mandate in terms of assets under management for number of Canadian institutional investment management firms?

Back 4

A balanced fund

Front 5

What is the legal structure of all investment management firms in Canada?

Back 5

Corporation

Front 6

What are the 2 major forms of privately owned investment management firms?

Back 6

100% employee owned or employee majority owned with a passive external owner

Front 7

By far the major determinant of cash bonus payment for portfolio manager is the manager is?

Back 7

Performance of various portfolios

Front 8

The front office usually includes all staff functions pertaining directly to the firm's blank space?

Back 8

Portfolio management activities

Front 9

Who are part of the front office?

Back 9

Portfolio management, analyst, trading staff, Sales and marketing staff

Front 10

Investment fund accounting and performance measurement should not be done by any of the portfolio managers or their staff. This is an example of ?

Back 10

Separation of duty's principle

Front 11

Securities regulators allow the following 3 common prospectus exemptions. What are they?

Back 11

MIAIOM

Accredited investor, minimum investment, offering memorandum

Front 12

Who is the primary point of contact with investors in the case of mutual fund?

Back 12

The Fund manager,

not portfolio manager

Front 13

Institutional investment managers offer their services by way of 4 main channels. What are they?

Back 13

Pooled funds,

Segregated/managed accounts,

limited partnerships

Sub advisory capacity

Front 14

Blank space, constitute the basic investment product platform for the majority of Canadian institutional investment management firms

Back 14

Domestic investment mandates

Front 15

For a number of institutional investment management firms, blank space, are becoming increasingly popular and presently constitute the significant portion of their total assets under management

Back 15

Balanced fund mandates

Front 16

What additional skills and processes are required for alternative investment strategy?

Back 16

Short sales of publicly traded securities, security borrowing and financing, leveraging and use of derivatives, negotiating private placement,

pricing non marketable securities

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Front 17

What is the disadvantage of expanding the distribution network through a 3rd party firm?

Back 17

Neither party has effective control over the missing resource, whether it is investment management skills or distribution capabilities.

4.31

Front 18

In the case of separation of duties principle, most institutional investors actually take this principle even one step further. How does this 1 step further strategy work?

Back 18

They receive portfolio holdings and return information from their institutional investment manager and compare it to the security holding and rates of return information provided by their 3rd party custodian.

4.11

Front 19

Who has physical control over all of the mutual fund's assets?

Back 19

Custodian

Front 20

For determining cash bonus of portfolio managers, what is the primary measurement of a portfolio's performance?

Back 20

Percentile or Quartile ranking in a representative universe of competitors portfolios

Front 21

Some medium to large size individually owned investment management firms may slightly change their share ownership structure to accommodate an investment by an institutional investor.

This change in the firm's ownership is normally limited to blank space, whose original investment is always limited to a minority voting position in the firm and starts with a modest Blank space, of its voting equity.

Back 21

One institutional investor

10 to 15% of its voting equity

Page 4

Front 22

What's one similarity and one difference between mutual funds and pooled funds?

Back 22

They're both Open Ended Funds

But pooled fund is not required to have prospectus

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