CFA Level I · CFA Level I Exam · Portfolio Management: An Overview
An investment firm manages assets for pension funds and sovereign wealth funds and does not offer products to individual savers. This firm is best described as serving which client segment?
The firm serves the institutional segment. Pension funds and sovereign wealth funds are large institutions, whereas retail and mass affluent clients are individual investors, which the firm does not serve.
- ARetail
- BInstitutionalCorrect
- CMass affluent
Explanation
Pension funds and sovereign wealth funds are institutional investors. Retail and mass affluent segments refer to individual investors, so they do not describe this firm's client base.
Did you get it right without looking?
One question tells you little. A timed set on Portfolio Management: An Overview shows your real accuracy, how long you take and where you lose marks.
More Portfolio Management: An Overview questions
- A client's IPS specifies a required return of 6.0% annually, with inflation expected at 2.5% and a spending need of 3.0% of assets per year.…
- Which of the following return objectives is best described as a well-constructed return objective in an IPS?
- A client has a high willingness to take risk but a low ability to take risk because of large near-term spending obligations. The adviser sho…
- A defined benefit pension plan has a large number of active employees who are far from retirement and a sponsor with strong finances. Compar…
- A pension fund wants to invest in a professionally managed pool of private assets, accepting limited liquidity in exchange for the manager's…
- A client's IPS specifies that the portfolio must be able to meet an expected USD 200,000 tuition payment in two years. This statement most l…