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Unformatted text preview: investment portfolio b. Investment horizon i. Planned liquidation date c. Regulations i. Prudent investor rule: the fiduciary responsibility of a professional investor; restrict investment to assets that would have been approved by a prudent investor d. Tax considerations i. After-tax returns e. Unique needs III. Investment policies a. First decision is asset allocation b. Second is security selection c. Top-Down policies for institutional investors i. Asset universe: approved list of assets in which a portfolio manager may invest ii. The investment company has responsibility for broad asset allocation d. Active vs. passive policies IV.Monitoring and revising investment portfolios a. Dynamic process: continually updating and reevaluating decisions over time...
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This note was uploaded on 05/10/2010 for the course FIN 3504 taught by Professor Staff during the Fall '08 term at University of Central Florida.
- Fall '08