Defined benefit plans are giving way to defined contribution plans. However, in some countries, such as Japan and the Netherlands, they are still featured prominently. This Los reviews the main factors that contribute to the risk of a DB plan….

It is important for financial institutions to be highly regulated because they have a direct impact on the non-financial sector of the economy. As a result, when large financial institutions fail, it can ripple through the economy, causing unemployment, lack…

Pension funds are vehicles that assist workers in saving for retirement. There are two types of pension plans: defined benefit, in which a plan sponsor agrees (legally) to pay a specified retirement benefit, and defined contribution, in which contributions are…

The Investment Policy Statement is the governing document for managers working with institutional investors, just as it is with individual investors. The IPS outlines the goals and objectives of the institution and serves as a guide that predetermines how the…

Institutions include corporations, trusts, or other legal entities that invest on behalf of groups or individuals, including both current and future generations. Institutional investors carry considerable influence over the capital markets due to their size, scope, and structure. This reading…

Mass Affluent Segment The Mass Affluent segment is the largest among the three segments defined here. Clients in this segment have smaller portfolios comparatively, and are typically more focused on financial planning. This could include budgeting, tax preparation, retirement planning,…

The CFA Institute Code of Ethics and Standards of Professional Conduct are great places for investment professionals and candidates to begin building their knowledge of ethics for finance. This section focuses on the unique considerations of private wealth management. Fiduciary…

Evaluating private wealth management program success is more involved than an a evaluating the success of an investment fund or ETF. The latter can often be compared to a benchmark. The same cannot be said of an individual investment management…

Portfolio Reporting Typically, a portfolio report will summarize the following: Portfolio asset allocation. Performance summary for the current (often year-to-date) period. Detailed performance (asset class and/or individual security performance). Performance reports covering the period since inception of the client's investment…

After creating the IPS wealth managers need to decide on an asset allocation that best fits the clients' objectives and constraints. This section covers 2 main approaches to asset allocation selection. Traditional Approaches The traditional approach is the most used….