English Language Tests-Intermediate level''''s archiveAsset Allocation pdf

English Language Tests-Intermediate level's archive
Asset Allocation
1. Ope Agbaje, an ABS analyst at CSAM, comments that
traditional approaches to asset allocation have tended to
focus on packaging together risk and return into one
portfolio in the pursuit of

maxiperformance
megaperformance
outperformance
overperformance
2. However, there has more recently been a gradual shift
towards separating out these two key components into
strategies, whereby the portfolio is composed of
highly risk-controlled 'core' products, combined with more
flexible satellite' products that are focused on alpha
generation.

distinct
diffused
unequal
unique
3. This asset allocation strategy is typically composed of a
core portfolio that incorporates strategies invested against
liquid benchmarks and managed within very risk
parameters.

lax
slack
taut
tight

4. Such core strategies include traditional equity and fixed
income products that are either passively or actively
managed against benchmarks such as the S&P 500 and
the JP Morgan Government Bond Index,

formally
formerly
respectfully
respectively
5. The satellite portion allows the investor to select more
aggressive and often less liquid strategies that have
correlations with the core component and provide the
portfolio manager with the flexibility to generate attractive
returns.

faster
finer
lesser
lower
6. Within this space, investors have the opportunity to add
more specialist asset classes, including absolute return
products, hedge funds, commodities and property
depending on individual risk

agendas
budgets
itineraries
tables
7. Within the fixed income world, a broad range of
innovative alpha generating strategies can be employed

as the satellite component of a portfolio.

disbursed
distended
distributed
diversified
8. However, while investors are becoming more familiar
with asset classes such as convertibles, high yield and
emerging debt, a number of new credit products
also make attractive satellite components.

class
interest
market
nation
9. One asset class that is beginning to receive more
is asset backed securities (ABS).

attention
brokerage
effort
pressure
10. These products have been developed from a financing
technique called , whereby a company will pool its
assets together to guarantee the issuance of bonds, which
are then sold to investors.

amalgamation
securitization
synchronization

unitization