It is a fact that the Code of Ethics and Standards of Professional Conduct apply to all CFA stakeholders and that candidates hoping to pass the exams need to be well versed in the Ethics material. This Los provides a…

This section of the curriculum presents a case in which a university endowment is deciding on its asset allocation, as well as its liquidity needs. This summary may be used in conjunction with the reading as a synopsis or may…

An illiquidity premium is a return earned by investors for the commitment of capital for an uncertain amount of time. In other words, it is a charge for the usage of money. Illiquidity, or liquidity premiums as they are also…

Liquidity risk involves a cost associated with locking up investor capital for an uncertain duration. Large institutional investors must plan their portfolio's liquidity to maximize fund efficiency. For example, an endowment funding college student aid may need to distribute funds…

Liquidity In the field of finance, liquidity is a term that refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. The liquidity of an investment is influenced by…

Taxation Investment management is a multifaceted field, with taxes on returns being a significant factor. While the media and academia often focus on fees and trading costs, the impact of taxes on returns is substantial and should not be underestimated….

Comprehensive Wealth Planning Comprehensive wealth planning, also known as integrated planning or wealth structuring, is a holistic approach to managing a client’s financial and business affairs. This approach is often used by high-net-worth individuals (HNWIs) with the aim of growing…

Goals-Based Planning Goals-based planning is a financial strategy that aligns an individual’s financial resources with their unique goals and circumstances. Unlike traditional methods that primarily focus on portfolio performance, goals-based planning balances personal spending with income and aligns investments with…

Family Governance Family governance is a crucial aspect of managing wealth, especially in large families where wealth is concentrated in a family business. It involves a system established by families to ensure the effective generation, transition, preservation, and growth of…

Distinctive Characteristics of UHNW Clients UHNW clients have unique financial planning needs and approaches, distinguishing them from other private wealth clients. This uniqueness is manifested in several key areas: Non-traditional Financial Planning Multi-jurisdictional Holdings Longer Time Horizon Distinct Risk-Reward Trade-off…