Structural outline

Question 1

Chapters

Answer 1

Derivatives (2,3)
Specialist asset classes (4,5)
Economic influences (6)
The theory of finance (7)
Regulation and its application (8,9,10)
Fundamental analysis (11)
Valuation of investment (12,13)
Constructing indices (14,15)
Performance measurement (16,17)
Risk control (18)
Actuarial techniques (19,20)
Portfolio management (21,22,23)
Taxation (24)

Question 2

Derivatives (2,3)

Answer 2

Futures market
Option markets
OTC markets
Contracts and payoffs
Option strategies

Question 3

Specialist asset classes (4,5)

Answer 3

Financial instruments available for ST lending and borrowing
Corporate debt and credit derivatives
Swaps, swaptions, options and forwards
Private debt
Private equity
Hedge (absolute return) funds
Asset-backed securities
Currency
Commodities
Infrastructure
Structured products
New ways of investing in old asset classes
Insurance linked securities

Question 4

Economic influences (6)

Answer 4

Central banks
Main investor classes
Government policy

Question 5

The theory of finance (7)

Answer 5

Introduction to corporate finance
Motives for M&As
Corporate financial planning
Behavioural finance
Application of BF

Question 6

Regulation and its application (8,9,10)

Answer 6

Regulation
Trust law
Corporate governance
Investment restrictions and agreements
Competition and fairness
Role of listings authority
ESG considerations
Ethical considerations
Key principles

Question 7

Fundamental Analysis (11)

Answer 7

FA of equities
Credit analysis for bonds
Impact of the trade cycle
Interpretation of accounts

Question 8

Valuation of investments (12,13)

Answer 8

Fixed income analytics and valuation
Arbitrage pricing and hedging
Empirical characteristics of asset prices
Intro to FI option pricing
Securitisation evaluation
CDS evaluation

Question 9

Constructing indices (14,15)

Answer 9

Industry classification
FTSE classification system
Construction of indices
Uses of indices
Equity indices
FI indices
Indices for unlisted/illiquid
Equity and international equity indices (table)

Question 10

Performance measurement (16,17)

Answer 10

Return calcs comparisons
Portfolio vs index
Portfolio vs BM
Performance attribution
Risk adjusted performance measures
Uses of PM
PM limitations
Portfolio assessment merits
Portfolio risk-return analysis
Equity valuation and performance
RAROC

Question 11

Risk control (18)

Answer 11

Financial risks
Portfolio theory
ALM
RFR

Question 12

Actuarial techniques (19,20)

Answer 12

Asset pricing models
ALM
ALM example, mismatch reserving
Liab hedging
LDI
Dynamic liability BMs

Question 13

Portfolio mgt (21,22,23)

Answer 13

Active mgt styles
Equity port mgt techniques
Bond portfolio mgt techniques
Port construction
The use of MF models
TA
Risk budgeting
Measures of risk
Role of the custodian
Uses of swaps
Uses of futures
Uses of options
ET and OTC markets
Currency hedging
Derivative reporting
Changing the SAA
Dealing in the CM
Costs vs benefits

Question 14

Taxation (24)

Answer 14

Taxation of inv
Corp taxation