- CFA Exams
- 2022 Level I
- Study Session 18. Portfolio Management (2)
- Reading 51. Basics of Portfolio Planning and Construction
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Learning Outcome Statements PDF Download
| 1. The Investment Policy Statement and its Major Components a. describe the reasons for a written investment policy statement (IPS); b. describe the major components of an IPS; | |
| 2. Investment Risk and Return Objectives, and Risk Tolerance c. describe risk and return objectives and how they may be developed for a client; d. explain the difference between the willingness and the ability (capacity) to take risk in analyzing an investor's financial risk tolerance; | |
| 3. Investment Constraints e. describe the investment constraints of liquidity, time horizon, tax concerns, legal and regulatory factors, and unique circumstances and their implications for the choice of portfolio assets; | |
| 4. Portfolio Construction f. explain the specification of asset classes in relation to asset allocation; g. describe the principles of portfolio construction and the role of asset allocation in relation to the IPS. | |
| 5. ESG Considerations in Portfolio Planning and Construction h. describe how environmental, social, and governance (ESG) considerations may be integrated into portfolio planning and construction. |
I used your notes and passed ... highly recommended!
Lauren
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