The management of investment portfolios of collective investment schemes, pension funds, insurance funds, hedge funds, and private equity would normally be considered to fall into the scope of:

The management of investment portfolios of collective investment schemes, pension funds, insurance funds, hedge funds, and private equity would normally be considered to fall into the scope of:

A. The retail financial sector

B. The wholesale financial sector

C. Family offices

D. Private banking

View Answer

Answer: B

Explanation:

Wholesale Financial Sector Defined

Involves large-scale financial transactions and services for institutions like pension funds, hedge funds, and insurance funds.

Why the Answer is B

Managing portfolios of collective investment schemes and large funds is a hallmark of the wholesale sector, focused on institutional rather than retail clients.

Why Other Options are Incorrect

A. Retail financial sector: Caters to individual clients, not institutional portfolios.

C. Family offices: Focus on managing wealth for high-net-worth families.

D. Private banking: Primarily deals with individual high-net-worth clients.

ICWIM Study Guide, Chapter on Financial Market Segments: Differentiates wholesale and retail sectors.

Investment Management Literature: Describes wholesale services.