Asset Manager Code
Loyalty to Clients Place client interests before their own. Managers must establish firm policies and procedures that ensure client interests are given precedence over their own. This commitment should encompass all aspects of the Manager-client relationship, including investment choices, transactions,…
The General Principles of Conduct and the Asset Manager Code of Professional Conduct
Responsibilities to Clients The following is an excerpt from the 2022 CFA Institute Curriculum: The following are the responsibilities of managers to their clients. A manager must: Be professional and ethical at all times. Focus on the client’s benefit, not…
The Asset Manager Code of Conduct
The Asset Manager Code of Conduct (AMCC) is an extension of the Code of Ethics and Standards of Professional Conduct, but it applies to entire asset management firms rather than individuals. It’s relevant to asset managers overseeing client funds through…
Application of the Code and Standards
The curriculum’s next section covers Standards I-VII with guidance provided in Learning Module 2 and learning Module 3. The CFAI Curriculum offers numerous case examples and advice on applying the Code and Standards. Candidates receive a downloadable e-book as part…
Guidance for Standards I–VII
The curriculum’s next section covers Standards I-VII with guidance provided in Reading 30 and Reading 31. The CFAI Curriculum offers numerous case examples and advice on applying the Code and Standards. Candidates receive a downloadable e-book as part of their…
Introduction to the study of the Code of Ethics and Standards of Professional Conduct
Many CFA program candidates find the Code of Ethics and Standards of Professional Conduct challenging, especially if English is their second language, as the exam is always in English. The language in the code and standards can seem complex. Below…
Professional Conduct Program
The Code and Standards are mandatory for all CFA Institute members and CFA Program candidates. The Professional Conduct Program (PCP) is overseen by the CFA Institute Board of Governors, and it, along with the Disciplinary Review Committee (DRC), ensures compliance…
Currency Management for Emerging Market Currencies
Managing emerging market currency risk presents a unique set of challenges, with two key considerations at the forefront: Higher trading costs: Many emerging market currencies have thin trading volumes. These occasions increase transaction costs due to broader bid-offer spreads. Additionally,…
Hedging Multiple Foreign Currencies
In this section, we delve into portfolio management and the complexities of handling multiple exposures to foreign currencies. In such cases, managers must consider the correlation among the currencies present in the portfolio. For instance, one might assume that having…
Currency Management Strategies
Managers with the flexibility to make currency exposure risk decisions can deviate from fully hedged portfolios. This leads to strategic considerations on finding the optimal level of portfolio protection and its associated cost. Various strategies are employed to reduce hedging…
