APMP Interview Study Questions And Accurate
Answers
What is the benchmark asset allocation of the portfolio?
The benchmark of the fund is:
40% Canadian fixed income
30% Canadian Equities
30% US Equities
*
Can tactically adjust but must never be over 70% equity and 50% fixed income.
At the end of 2023 (Year end August 31st, 2023) what was the allocation of the portfolio?
At year-end, the fund was tactically overweight US equities (39.0%), and underweight
Canadian Equities (26.3%) and fixed income (32.4%), with a cash balance of 4.3%.
Brainpower
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What is the portfolio's custom benchmark?
The fund's performance is measured against a custom benchmark comprised of 40%
FTSE TMX Canadian Universe Bond Index, 30% S&P/TSX Total Return Index and 30%
S&P 500 Total Return Index.
What was the portfolio's return for 2023 against the benchmark?
Over the fiscal year ended August 31st, 2023, the fund returned 5.2% against a custom
benchmark return of 8.9%, representing underperformance of 374bps.
How many holdings does the fund have at year end 2023?
The fund held 23 equity holdings at year-end. Of the total, 10 were Canadian equities
and 13 were US equities.
, How did the portfolio's fixed income strategy change in the course of the year and what
was the effect?
The portfolio managers exited short duration biased fixed income strategy and in doing
so the funds fixed income strategy became neutral to the fixed income benchmark XBB.
What two equity investments did the portfolio managers initiate in 2023?
Costco and Service Corporation International.
To what can be attributed the funds underperformance in 2023?
The underrepresentation in the portfolio of a few small mega-cap technology names and
the high growth technology sector as a whole.
Give a brief overview of Service Corp international, describing what the company does
and why the portfolio managers added it to the portfolio.
Should include:
- largest funeral and cemetery operator in North America. Services include cremation,
burial products, reception, and catering
- 1900 locations
PM's had done analysis of competitor, Park Lawn Corp.
tail winds, including strong aging demographic and scarcity of cemetaries space in
urban areas
Service corp benefited from better ROIC and cash flow margins, which reflect the
pricing power and scale
IAC concerned about whether Park Lawn can leverage its strategy in acquisition
chant Briefly explain Costco Wholesale and why the portfolio managers chose to add it
Answers
What is the benchmark asset allocation of the portfolio?
The benchmark of the fund is:
40% Canadian fixed income
30% Canadian Equities
30% US Equities
*
Can tactically adjust but must never be over 70% equity and 50% fixed income.
At the end of 2023 (Year end August 31st, 2023) what was the allocation of the portfolio?
At year-end, the fund was tactically overweight US equities (39.0%), and underweight
Canadian Equities (26.3%) and fixed income (32.4%), with a cash balance of 4.3%.
Brainpower
Read More
What is the portfolio's custom benchmark?
The fund's performance is measured against a custom benchmark comprised of 40%
FTSE TMX Canadian Universe Bond Index, 30% S&P/TSX Total Return Index and 30%
S&P 500 Total Return Index.
What was the portfolio's return for 2023 against the benchmark?
Over the fiscal year ended August 31st, 2023, the fund returned 5.2% against a custom
benchmark return of 8.9%, representing underperformance of 374bps.
How many holdings does the fund have at year end 2023?
The fund held 23 equity holdings at year-end. Of the total, 10 were Canadian equities
and 13 were US equities.
, How did the portfolio's fixed income strategy change in the course of the year and what
was the effect?
The portfolio managers exited short duration biased fixed income strategy and in doing
so the funds fixed income strategy became neutral to the fixed income benchmark XBB.
What two equity investments did the portfolio managers initiate in 2023?
Costco and Service Corporation International.
To what can be attributed the funds underperformance in 2023?
The underrepresentation in the portfolio of a few small mega-cap technology names and
the high growth technology sector as a whole.
Give a brief overview of Service Corp international, describing what the company does
and why the portfolio managers added it to the portfolio.
Should include:
- largest funeral and cemetery operator in North America. Services include cremation,
burial products, reception, and catering
- 1900 locations
PM's had done analysis of competitor, Park Lawn Corp.
tail winds, including strong aging demographic and scarcity of cemetaries space in
urban areas
Service corp benefited from better ROIC and cash flow margins, which reflect the
pricing power and scale
IAC concerned about whether Park Lawn can leverage its strategy in acquisition
chant Briefly explain Costco Wholesale and why the portfolio managers chose to add it
