Abstracts » Business

If the benchmark fits, wear it?

Article Abstract:

Benchmarks are a way of measuring the performance of portfolio managers but care has to be taken to ensure that the benchmark is appropriate and relevant. Benchmarks that are useful for pension funds may not be as useful for private client portfolios. Private clients vary in how they perceive risk, the level of risk they are prepared to accept, and the understanding they have of risk. Some clients may have a deep understanding, while others may simply seek better returns than can be obtained from using a deposit account, taking fees into accout.

Commercial Banks, Investment Banking and Securities Dealing, Portfolio & Funds Management, Analysis, Benchmarks, Benchmarking

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Trading places

Article Abstract:

United Kingdom charity trustees have to ensure that the funds of the charity are invested in such a way that levels of capital growth and income are adequate. Charities may set up trading operations and this may involve an investment from the charity's funds, as well as leading to tax problems, and leaving charities more vulnerable to questions about their charitable status. Secured loans can be used for investments by charities in trading subsidiaries. Professional advice is needed if pitfalls are to be avoided.

Portfolio Management, SOCIAL SERVICES, Private Social Services, Social Assistance, Finance, Charities

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