9. In a separately managed account, where are each clients\' securities actually

Question

9. In a separately managed account, where are each clients' securities actually.held? a) The fund's own account b) Single custody account c) Separate dedicated account d) Bulk account with other participants 10. A client likes the idea of a Fund of Funds but wants a degree of customization and the ability to have a unique asset allocation within a fee based arrangement What would you recommend? a) Mutual Fund Wrap b) Multi-Disciplinary Account c) Separate Managed Account d) Proprietary Managed Program 11. Which of the following is not a type of Managed Account? a) Single Manager Account b) Full-Service Brokerage Account c ETF Wrap d) Proprietary Managed Program 12. Which of the following is the most sophisticated type of fee-based account for ultra-wealthy clients? a) ETF Wrap Account b) Multi-Disciplinary Account c) Separately Managed Account d) Full Service Brokerage Account

Explanation / Answer

Question 9: Answer is (c)

In seperately managed accounts, the investors hold securities in a Seperate dedicated account

Question 10: Answer is (a)

Mutual Funds Wrap allows you to invest in a number of funds, along with the services of a professional manager who selects funds according to an individual's investment goals. This is at a very nominal fee. hence, Mutual fund Wraps allow a degree of customization and unique asset allocation in a fund of fund kind of structure

Question 11: ETF wrap is not a type of managed fund account. This is because a managed fund account is one which is owned by the individual investor and monitored by a professional money manager, whereas an ETF wrap is one which is an investment portfolio of an individual whose investments may or may not be monitored by a professional manager. Hence, ETF wrap is not a managed fund account.

Question 12: Answer is (c) Seperately Managed Account as it provides a high degree of customization with a professional advice. Also, all investments are made according to the inidividual needs and investment goals

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