Basics of Portfolio Planning and Construction (2024/2025 Level I CFA Exam – PM – Module 4)

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Topic 9 – Portfolio Management
Module 4 – Basics of Portfolio Planning and Construction
0:00 Introduction and Learning Outcome Statements
1:44 LOS : Describe the reasons for a written investment policy statement (IPS).
8:42 LOS : Describe the major components of an IPS.
12:29 LOS : Describe risk and return objectives and how they may be developed for a client.
14:53 LOS : Explain the difference between the willingness and the ability (capacity) to take risk in analyzing an investor’s financial risk tolerance.
26:37 LOS : Describe the investment constraints of liquidity, time horizon, tax concerns, legal and regulatory factors, and unique circumstances and their implications for the choice of portfolio assets.
37:21 LOS : Explain the specification of asset classes in relation to asset allocation.
39:45 LOS : Describe the principles of portfolio construction and the role of asset allocation in relation to the IPS.
42:58 LOS : Describe how environmental, social, and governance (ESG) considerations may be integrated into portfolio planning and construction.