Chartered Investment Manager (CIM) Practice Exam · Question
A Canadian portfolio manager is managing a conservative client's fixed income portfolio designed for income generation. The manager aims to minimize interest rate risk while providing a steady yield. Which benchmark is most appropriate to evaluate this manager's performance fairly?
The FTSE Canada Universe Bond Index is a broad, representative benchmark for the Canadian investment-grade bond market, making it the most suitable choice for e
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Question: A Canadian portfolio manager is managing a conservative client's fixed income portfolio designed for income generation. The manager aims to minimize interest rate risk while providing a steady yield. Which benchmark is most appropriate to evaluate this manager's performance fairly?
Answer options:
- S&P/TSX Composite Index ✅ FTSE Canada Universe Bond Index
- MSCI World Index
- S&P/TSX Canadian Preferred Share Index
Correct answer: FTSE Canada Universe Bond Index
Explanation: The FTSE Canada Universe Bond Index is a broad, representative benchmark for the Canadian investment-grade bond market, making it the most suitable choice for evaluating a fixed income portfolio focused on income generation and managing interest rate risk.
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