Completion Portfolio vs. Completion Fund

CFA Level III
#1

Distinguish between a Completion Portfolio and a Completion fund and specify when it is appropriate to use each method (6 points):

#2

Completion portfolio is adding to an existing portfolio so that the combined portfolios have the desired risk exposure. Completion fund if putting low basis stock in fund with other investors as a way to diversify your holdings. Note: Cost basis does not change.

#3

“Completeness” Fund vs Completion Portfolio? COMPLETENESS - has to do with getting a Fund back to the risk level if you have a bunch of wild active managers throwing off all kinds of alphas. COMPLETION - unrelated to COMPLETENESS - its a way to diversify concentrated holdings for individual (start with HIGH concentration stock and add more stocks incrementally - requires access to additional wealth beyond concentration.

#4

Mr.Good.Guy Wrote: ------------------------------------------------------- > Completion portfolio is adding to an existing > portfolio so that the combined portfolios have the > desired risk exposure. > > Completion fund if putting low basis stock in fund > with other investors as a way to diversify your > holdings. Note: Cost basis does not change. i believe it is exchange fund. if dont remember which one is which but on one you add stocks to diversify your concentrated position. another you add to minimize misfit risk

#5

To add to MGG, completion portfolio also helps to align your portfolio better to the benchmark.

#6

comp_sci_kid Wrote: ------------------------------------------------------- > Mr.Good.Guy Wrote: > -------------------------------------------------- > ----- > > Completion portfolio is adding to an existing > > portfolio so that the combined portfolios have > the > > desired risk exposure. > > > > Completion fund if putting low basis stock in > fund > > with other investors as a way to diversify your > > holdings. Note: Cost basis does not change. > > > i believe it is exchange fund. > > if dont remember which one is which but on one you > add stocks to diversify your concentrated > position. Exchange fund > > another you add to minimize misfit risk Completion fund

#7

So how many out of the 6 points do I get?

#8

Completion portfolio You have concentrated position (undiversified, high level of unsystematic risk) you select target portfolio and purchase it with cash or borrow against concentrated position. Offset losses on portfolio with gains on concentrated position (generate tax alpha) and use proceeds to buy more of target portfolio Disadvantage: diversification might take long

#9

2-3 points Mr.Good.Guy Wrote: ------------------------------------------------------- > So how many out of the 6 points do I get?

#10

can someone point out where in the curriculum this completeness stuff is? i know about the completion thanks

#11

Damn

#12

Completeness Fund is in SS10 (equity)

#13

so it is called Completion portfolio or Completion fund (for diversification purposes)

#14

^ thought it was portfolio for div purposes since you are building a portfolio round your concentrated position

#15

COMPLETENESS vs. COMPLETION - NOT BOTH COMPLETION!!!

#16

so COMPLETNESS FUND AND COMPLETION PORTFOLIO. rgr that.

#17

“Completeness” Fund (V4 p 145) vs Completion Portfolio (V2 - p262-263)

#18

Anyone know how the points add up if you get what the thing does correct but you mess up on the name (completeness vs completion, etc.)

#19

completion portfolios and exchange funds are 2 different things.

#20

So, we can have: Completion Portfolio(for low basis stocks: take long time), Completeness Fund(to reduce misfit risk: lower active return) Pooled Account(for equity indexing: lower cost) Pooled Fund (including mutual fund, shown in Ethics) ?