Vollnachbildung
English translation: (full) replication
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| 00:59 Apr 1, 2002 |
| German to English translations [PRO] Bus/Financial | |||||||
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|  Selected response from: msebold Canada Local time: 23:24 | ||||||
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| 5 +4 | (full) replication |
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Answers
3 hrs confidence: 
peer agreement (net): +4
peer agreement (net): +4(full) replication Explanation: There are three methods of structuring index funds. Index Fund A portfolio of securities structured in such a way that its value will closely follow a nominated market index, eg. an equity index fund may be designed to track the All Ordinaries Index. There are three main methods in use: a) Replication, which involves buying every security in the Index in the correct proportion; b) Stratified sampling, which selects a sample of stocks according to simple criteria, such as size and industry grouping, to achieve an approximate tracking at lower administrative cost; and c) Optimised sampling, which uses a more sophisticated statistical approach involving a risk-matching process to design the best sample of stocks for any particular desired level of tracking accuracy. A fund structured by this method is known as an optimised index fund. Index funds can be designed for equities (domestic or overseas), bonds, or property trusts. -------------------------------------------------- Note added at 2002-04-01 04:51:34 (GMT) -------------------------------------------------- Here are some links where \"full replication\" is used: Investment Strategies The Wired® Index Fund will attempt to replicate the performance of the Wired Index™. In managing the Fund, we will generally follow a policy of \"full replication,\" meaning the Fund will generally invest in all 40 component issues that comprise the Wired Index™ in the proportion they are represented within the Index. http://www.investecfunds.com/us/fundfacts/wired.html Strategy Because of the large number of securities in the Lehman Aggregate Bond Index which are not available for purchase, full replication of index holdings is not possible. http://www.commonfund.org/products/47.asp Reference: http://www.tradingroom.com.au/dictionary/dict_i.html |
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