Planned Goals Planned goals will be those which are easiest to account for, in that clients will bring them up with their wealth management team, hopefully at the outset of a relationship. The following are some examples of planned goals:…

Common Tax Categories Taxes on income: These include taxes on salaries, interest, dividends, capital gains, and rental income. Wealth-based taxes: These include taxes on the holding of certain types of property and taxes on the transfer of wealth. Taxes on…

Personal Information Several factors contribute to the success of a wealth management relationship. To provide comprehensive advice, managers require all pertinent details about the prospective client, avoiding fragmented advice based on a partial analysis of the client's wealth. Relevant personal…

Private clients typically refer to individuals and families looking to invest their wealth. In contrast, institutional clients encompass companies or organizations that pool funds to achieve specific goals on behalf of owners and potentially other stakeholders. This section aims to…

Reading 23: Overview of Equity Portfolio Management Los 23 a: Describe the roles of equities in the overall portfolio Los 23 b: Describe how an equity manager’s investment universe can be segmented Los 23 c: Describe the types of income…

Basics of Analytical Tools in Fixed-income Space Analytical tools in the fixed-income domain have evolved alongside the market's growth and technological advancements. Modern fixed-income analytics encompass some of the following tasks: Building portfolios. Analyzing risks. Facilitating trading and settlement. Managing…

Structured financial instruments are collections of assets backed by collateral. Collateral ensures that if a borrower defaults on loans, their assets can be seized and sold to recover part or all of the issuer's losses. These instruments offer various tranches,…

International effects can influence a fixed-income portfolio, even if they aren't immediately apparent. This is because numerous businesses, and increasingly so, derive a portion of their revenues and costs from foreign origins. Emerging Markets (“EM”) Credit The emerging market corporate…

Understanding the economic cycle significantly influences the evolution of spread curves. Managers and candidates must grasp how spread curves behave throughout the credit cycle regarding their levels and expected changes. This knowledge is crucial for making informed decisions about positioning…

A Credit Default Swap (“CDS”) is a tool that allows investors to isolate and manage credit risk apart from other fixed-income risk exposures. As a reminder, credit risk involves the chance of a borrower not repaying funds due. CDS Mechanics…