Completeness Fund

Rank: 2

UID: 222319
帖子: 433
主题: 15
注册时间: 2011-7-2
最后登录: 2014-10-24

2^#

发表于 2011-7-13 15:20 | 只看该作者

A completeness fund is used when
you have concentrated holdings, and over time you buy other securities as a form of diversification.
A core is everything that is passively indexed or has only low tracking error, or small factor mismatches

bpdulog

UID: 222299
帖子: 420
主题: 7
注册时间: 2011-7-2
最后登录: 2015-12-15

3^#

发表于 2011-7-13 15:20 | 只看该作者

Completeness Fund is added to Existing Portfolio for Adjust Total Portfolio Risk Level to desired level.
Core-Satellite Strategy divided into Core Fund and Satellite Fund. Core Fund Controls overall Risk and usually constructed by Index Fund or Semi-active Fund. Satellite Funds pursue alpha so those usually constructed by Active Fund..

I think..

mp3bu

UID: 222307
帖子: 669
主题: 24
注册时间: 2011-7-2
最后登录: 2016-1-10

4^#

发表于 2011-7-13 15:20 | 只看该作者

you also need to have cash available to complete the completeness fund.

mar350

UID: 222322
帖子: 461
主题: 17
注册时间: 2011-7-2
最后登录: 2015-7-31

5^#

发表于 2011-7-13 15:20 | 只看该作者

I think you guys are talking about 2 different definitions of completeness fund. This term shows up in 2 separate sections in the curriculum...1) within how to diversify a concentrated holding in a private wealth investor portfolio (completion portfolio) and 2) core sattellite vs. completion fund approach ....

Or did I get the terminology mixed up as well? haha

thommo77

UID: 222320
帖子: 448
主题: 21
注册时间: 2011-7-2
最后登录: 2015-12-8

6^#

发表于 2011-7-13 15:21 | 只看该作者

Nope, you're bang on. Completeness fund (what the question is about) and completeness portfolio are two totally separate things.

Zestt

Rank: 2

UID: 222314
帖子: 421
主题: 5
注册时间: 2011-7-2
最后登录: 2014-10-14

7^#

发表于 2011-7-13 15:21 | 只看该作者

completness fund for core satellite portfolio

completion portfolio for dealing with low basis stock

the way i rememeber it is that "completeness" is a longer word than "completion"....and it comes later in the curriculum

later study session/longer word

skycfa

Rank: 2

UID: 222296
帖子: 337
主题: 13
注册时间: 2011-7-2
最后登录: 2014-10-26

8^#

发表于 2011-7-13 15:21 | 只看该作者

that's hilarious...but i can see it being effective....hopefully they won't ask neither on the exam!

Analti_Calte

Rank: 2

UID: 222289
帖子: 395
主题: 7
注册时间: 2011-7-2
最后登录: 2016-8-30

9^#

发表于 2011-7-13 15:21 | 只看该作者

Core fund is a fund to build your portfolio around.

For instance, I'll own a large cap growth mutual fund to start out with. That's my core. Then I'll add other investments around that investment to tack on some alpha but your core is your main holding. So in addition, I'll buy a small cap fund, and an international fund as add-on investments, for example.

bkballa

UID: 222297
帖子: 431
主题: 13
注册时间: 2011-7-2
最后登录: 2016-1-9

10^#

发表于 2011-7-13 15:21 | 只看该作者

A completeness strategy is useful if you have time and money to fund the other assets but yea, it's a pretty stupid and obvious strategy.