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Flashcards in week 12 Deck (9)
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1

The CFA’s investment management framework partitions the process into three stages

1. Planning

2. execution 

3. feedback

 

2

The CFA’s investment management framework partitions the invement management process into three stages

what is planning

defining the inputs required to make investment decisions

3

The CFA’s investment management framework partitions the invement management process into three stages

what is execution

making asset allocation and security selection decisions and, by doing so, constructing the investment portfolio

4

The CFA’s investment management framework partitions the invement management process into three stages

what is feedback

monitoring and, if necessary, subsequent revision of the portfoliong so, constructing the investment portfolio

5

the investment management process begins by 

with the investment manager assessing how much risk the investor will accept to pursue higher returns.

 This will differ markedly between investors; and,

 An investment manager will typically ascertain the return requirement and risk tolerance of an investor by asking them to complete a questionnaire

6

constraints on investment

liquidity

how readily investmens can be converted into cash

- how likely are individual and institutional investors likely to dispose of assets at short notice?

7

constraints on investment

investment horizon

how long the investor plans to hold the asset 

8

constraints on investment

other 3 constraints

Regulations

Tax Considerations

Unique Needs

9

investment policy statement

provides a framework to assist in the development and implementation of an investment program