CFA 2018 level 3 gostudy individual IPS (r8)

www.gostudy.io Go Study’s CFA Exam Level ® Private Wealth Management / Individual IPS by GoStudy™ www.gostudy.io Everything you need to pass & nothing you don’t www.gostudy.io Guided Notes for CFAđ Level 2016 Copyright â 2016 by Go Study LLC.® All Rights Reserved Published in 2016 The “CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute CFA Institute does not endorse, promote, review, or warrant the accuracy of the products or services offered by www.gostudy.io Certain materials contained with this text are the copyrighted property of the CFA Institute The following is the copyright disclosure for those materials: “Copyright, 2016, CFA Institute Reproduced and republished from 2016 Learning Outcome Statements, Level III CFA® Program Materials, CFA Institute Standards of Professional Conduct, and CFA Institute’s Global Investment Performance Standards with permission from CFA Institute All rights reserved.” Disclaimer: These guided notes condense the original CFA Institute study material into 300 pages It is not designed to replace those notes, but to be used in conjunction with them While we believe we cover all of the core concepts accurately we cannot guarantee nor warrant that this is true Use of these notes is not a guarantee of exam success (although we think it will help a lot) and we cannot be held liable for your ultimate exam performance About gostudy.io Along with these Guided Notes, GoStudy offers a suite of products for in-depth exam strategies and comprehensive subject review to help candidates pass the final CFA exam We have hundreds of notecards and practice problems built into a mobile app for on-the-go review, with detailed analytics (coming), and last-minute cram material such as equation lists and “week before” summary sheets We also highly recommend candidates subscribe to our free newsletter for exclusive offers, access to study tips, tricks, and in-depth discussions of the exam We also periodically provide bonus resources such as mock exams, practice problems, and more to our subscribers If you have any questions regarding this product, the exam, or how we can help please contact us via the website We strive to answer every question a candidate has and are always incorporating Candidate feedback into what we build next www.gostudy.io Contents Private Wealth Management (1) - Study Session Managing Individual Investor Portfolios (Reading 8) Overview of the Investment Policy Statement (IPS) Classifying Investors Constructing the IPS Return The Five Constraints 11 Strategic Asset Allocation (SAA) 14 www.gostudy.io Private Wealth Management (1) - Study Session We now (mostly) shift away from the theoretical underpinnings of behavioral finance and the detailed evaluation of individual biases Our task now is to put what we’ve just learned into a practical context in terms of the specific actionable steps an investment manager should take when constructing an Investment Policy Statement (IPS) The IPS is a document that identifies the needs, goals, and risk tolerance of an investor as well as any constraints under which the portfolio must operate The final goal as an investment manager is to build an IPS that is consistent with a client’s beliefs, attitude, and life stage From there we can determine a strategic asset allocation (SAA) that meets their required return while staying within the risk and constraint parameters of a given investor Thus the IPS unifies traditional finance’s prescriptive approach to asset allocation with an acknowledgement of an investor’s individual quirks and situation In practice, this section will appear as a major stand-alone question in the morning section of the exam (usually the first problem, accounting for 18+ points) Rather than knowing the steps or constraints by rote you will be asked to: solve for a client’s expected return, identify their ability and/or willingness to take risk (on a scale from low to very high), and pick out their key constraints from a long passage While the CFAI reading presents the IPS in the context of a case study the best way to really see how this material is tested is via the practice problems found in the morning CFAI practice exams Each exam has at least lengthy problem on managing an individual’s portfolio If you 8-9 of them in preparation you are virtually guaranteed to well on this pivotal and often feared morning section (and hopefully get faster at it too) It is shocking how many Candidates wait until the last month to look at past morning exams Don’t make this rookie mistake Managing Individual Investor Portfolios (Reading 8) The IPS guides the entire advisor/client relationship by setting clear objectives and constraints on the portfolio Constructing an IPS, especially for the purposes of the L3 exam, is a very codified process It has clearly defined steps and you can expect that each step will be tested The good news is that this means it is very clear exactly what you need to know to get most of the morning points here For studying purposes as well, the precision of the exam lets us condense well over a hundred of pages of reading into just a few pages Seriously! Overview of the Investment Policy Statement (IPS) The IPS is a living document that defines the client/advisor relationship and sets clear objectives and constraints on the portfolio in order to develop a strategic asset allocation (SAA) that is unique to each investor The IPS should be reviewed annually or changed whenever a major change in circumstances could affect risk-return objectives or portfolio constraints.1 On the exam, the IPS section is most focused on identifying the expected return and risk and then discussing the five constraints an investor faces: time, taxes, liquidity, legal, and unique The Examples of such changes include: change in income, divorce, marriage, change in tax laws, severe portfolio underperformance, a major liquidity need etc www.gostudy.io best way to remember this is with RR-TTLLU In the morning section of the exam expect questions asking you to decide on an investor’s risk tolerance, solve for return, and ID and talk about each constraint, all based on information presented in a passage Why create an IPS? The world of individual investors is “heterogeneous, burdened by taxes, and less well suited to the simplifying assumptions of modern portfolio theory.”2 We create an IPS to help guide an investment manager through this complexity and because we expect it to be useful for both clients and advisors: Client Benefits     Creating an IPS is an educational process Prioritizes clients objectives & constraints Makes it easier to add new managers Provides a long term plan that is understandable/can provide discipline through market cycles but has flexibility Advisor Benefits  Builds knowledge of clients  IDs clients objectives & constraints  Provides guidance/support for decisions and a formal framework for resolving disputes Relevant Behavioral Finance Concepts The IPS is about creating a document to help optimize a portfolio using traditional finance concepts while also building in elements of behavioral finance to account for a client’s personality, age, and wealth To briefly summarize the traditional vs behavioral distinction one more time: We can think of behavioral modifications as pesky, annoying deviations from the optimal efficient state that need to be accounted for, and the IPS as the document that captures these deviations by creating a profile for each investor’s unique situation This is most important when thinking through an investor’s ability & willingness to take risk In fact most of this reading is centered on teaching us how to identify an investor’s risk tolerance (willingness) and ability to take on risk according to their constraints and actual situation Expect this to be tested on the exam Classifying Investors There are a variety of different methods of categorizing investors, many of which we’ve already covered In this reading, however, we touch on a few more frameworks and tie them more closely to being able to answer likely exam questions such as:   What is the risk tolerance of this investor? (Above-average, average, below-average) What is the willingness of this investor to take risk (above average, average, below average) CFA Institute, Managing Individual Investor Portfolios, 2015 www.gostudy.io Classifying Investors by Personality Type When it comes to classifying investors by personality type (usually from answers to a questionnaire) this reading introduces four main classifications Cautious Investors: Prefer safe investments with low volatility Loss averse Not a decisionmaker, but nevertheless are often resistant to professional advice Often have an inability to pull trigger causing them to lose opportunities due to over-analysis or fear of taking action Exhibit low portfolio turnover Signs of a cautious investor could include previous life situations (lost a lot of money in the markets) or their financial situation Methodical Investors: Are diligent researchers that rely on hard facts They are thus unemotional and constantly looking for new information They tend to be conservative investors due to their disciplined approach Individualistic Investors: Do their own research and very confident They make their own decisions and will take the time/make the effort to reconcile different data Spontaneous Investors: Adjust their portfolio a lot in reaction to new developments and often chase fads This over-management causes high trading costs and the highest turnover of any personality type They usually lack experience but still doubt professional advice and are more concerned with missing a trend than a portfolio’s overall level of risk Graphically we can plot these types against their risk aversion and method of decision-making: www.gostudy.io Situational Profiling - Source of Wealth, Stage of Life & Risk Tolerance We can also profile investors by their stage of life or economic circumstances On the exam, you will likely see passages that hint at an investor’s stage of life, wealth, and method by which they accumulated that wealth Each should give you valuable clues to both their willingness and ability to take risk Source of Wealth: This is just the Barnewell 2-way model presented again Active (entrepreneurial) sources of wealth usually indicate above-average risk tolerance whereas passive (inheritors) display below average risk tolerance The presumption is that “self-made” investors have greater familiarity with risk-taking and a higher degree of confidence that they can recover from setbacks.3 To identify more passive lower-risk investors look for information that they’ve inherited wealth, received a large one-time payment, or steadily accumulated wealth during a period of secure employment Measure of Wealth: An individual’s perception of wealth is important The greater one’s perception of one’s wealth the higher the risk tolerance Take two fifty year olds with the same amount of assets as an example If one of them has 15 years of living expenses saved, or can expect an inheritance, they might have a higher level of wealth than the other 50 year old whose assets only cover years of expenses On the exam you may need to make this determination based on how easily (or not) a portfolio’s returns can support an investor’s desired lifestyle In addition, if an investor is greatly concerned with succession/estate planning this is usually a sign that the portfolio is considered “large.” Stage of Life: One’s stage in life is also vital to establishing a client’s risk tolerance The key concept here is that the longer your investment time horizon the greater your ability to recover from downturns and thus the higher your risk tolerance all else equal There are four main stages of life that follow one’s life progression from young to old (note we cover these stages in more depth when talking about human capital vs financial capital) The Four Stages of Life Foundation: Accumulation phase Long time horizon: Greatest ability to take risk from a time perspective but this may be offset by having little accumulated wealth Accumulation: Period of maximum saving & accumulation Strong ability to take risk from both a time and asset perspective, but there may also be greater financial demands than previously Maintenance: Retirement phase Can still be long time horizon, however, declining ability to take risk given less income and thus less ability to replace lost principal/capital Emphasis shifts to preserving wealth and purchasing power which can involve shifting assets to lower-volatility investments On the exam this means usually means solving for an E(r) that keeps portfolio at the same level of purchasing power As we cover later, the degree or willingness to assume risk for these self-made investors often depends on how much control they feel they have over the situation www.gostudy.io Distribution: Can be during the maintenance phase or also post-death for any bequests the clients wanted to make and for which had excess assets over what they require For clients with substantial wealth this is where proper estate planning becomes critical Constructing the IPS IPS questions are GUARANTEED to be on the CFA Exam While you will not need to “create” an IPS from scratch it is helpful to know the basic steps in the process of actually creating one The exam questions will often follow this structure in their flow and order As a bonus, understanding the structure of the IPS also gives you insight into how the entire L3 curriculum and exam are structured In other words, the hyperlinks for each numbered step below point to major readings or even entire study sessions The Formal IPS Process Determine the Investor’s Objectives a Return Requirements (return objective, and required return to meet those objectives) b Risk Tolerance Determine the Investor’s Constraints a Time Horizon b Taxes c Liquidity needs d Legal/Regulatory e Unique considerations ID the appropriate investment strategy (SAA) a Must meet the investor’s objectives b Must fall within the investor’s constraints c Is appropriate given the manager’s capital market expectations (i.e is realistic) Carry out the Asset Allocation process Execute portfolio trades Evaluate portfolio performance at regular intervals Rebalance the portfolio as needed For the morning exam question this boils back down to RR-TTLLU We break each one down next, but lead with a high level summary checklist of how each will actually be tested: RRTTLLU  Risk - Above average, average, or below average tolerance based on details in passage  Return - Calculation based on investor goals, may be pre or post tax  Time - Multi-stage time horizons, positive relationship with risk, determines n in return calculation  Taxes - May factor into return calculation, watch out for any long term holdings with substantial capital gains  Liquidity - How much cash you need within a year period, inverse relationship to risk  Legal - Less important for individuals, state they may need to consult legal professionals  Unique – A catch-all bucket for non-standard constraints www.gostudy.io Return The return section is divided into two parts   The return objective, which is a statement of the investor’s objectives The required return, which is a calculation designed to figure out the return needed to meet the client’s objectives On the exam when solving for return you will be using your financial calculator in a straightforward PV/FV calculation There are, however, a few things to keep in mind about return calculations: a Calculate the return consistent with Capital Market Expectations (achievable) b The return is governed by client constraints ID their risks before talking about their expected return c The return may be defined as either or both the required return or the desired return d The return may be pre or post tax and it may be defined in nominal or real terms The return requirement is usually framed as the return required to meet all essential objectives such as living expenses, child education, and bequests etc It could also be framed as a desire to maintain a portfolio’s real purchasing power (keeping up with inflation) over a period of time while also meeting certain spending requirements Basically, FV =PV(1+r)^N (but accounting for yearly cash flows in or out) Note that required return is distinct from desired return, which could include things like taking a large vacation or wanting to buy a yacht Finally, if an investor’s return objective cannot be met without violating their risk parameters the individual may have to modify their behavior (e.g retire later) or accept a slightly more risk than they may be comfortable with (if they have sufficient ability) Solving for required return When solving for required return take close account of nominal vs real and pre-tax vs post tax so that you solve for the right rate of return (I/R) On the exam you will use your financial calculator and follow these steps in order to perform the necessary calculation:       List the client objectives Quantify their current assets This is their PV Calculate the time horizon This is n Calculate what they will need on an annual basis This is their PMT This is sometimes a predictable annual payment (like a mortgage) or the sum of their total living expenses (accounting for time value) NET of their income (so total inflow or outflow) Make sure you also apply nominal/real and pre/post tax to these inputs if needed Calculate their FV This is often equal to the PV adjusted for inflation over the time horizon Calculate the % return needed What it boils down to for the exam itself is that you will need to read a passage about an investor, and from that passage pick out the right values for Time (N=), their Base Assets (PV=), the amount they spend per year to meet expenses net of income (PMT (can be positive or www.gostudy.io negative)), and then a quick calculation for the amount they need at the end of the period (FV=?) Finally you can then you solve for expected return (I/Y) Although you have to work to pick out the relevant information from a long passage this calculation is pretty straightforward BUT the exam makers will try to make it trickier by adding in tax and inflation considerations Keep the following keys in mind:       Are you solving for after tax or before tax returns? If you are solving for nominal return (most likely) are you including expected inflation? Have you adjusted the PV (current investable assets) to account for any immediate cash inflows/outflows? Have you adjusted next year’s required cash flows (CF) for inflation if needed? Are you using the correct (+/-) signs when adjusting for cash in and out? Do you have the correct FV, either adjusted for future value, or correctly specified as the given terminal value? Have you adjusted the PV to account for any immediate cash flows in or out? If you keep these points in mind, ample sample problems from past exams, and show your work on the day of the exam then you should get most of these points Half the battle here is not getting bogged down in bad time management Risk Think about risk as defining the return you can expect and strive for given a person’s financial situation and psychological profile Here we define the main factors influencing one’s willingness and ability to take risk and then provide a comprehensive list of factors that might be mentioned in a passage to help you identify where on the spectrum of risk they fall Risk depends on both your willingness to take risk and your ability to take risk Willingness and ability are different Think of ability as a quantitative assessment of how much they can afford to lose relative to their goals Willingness on the other hand is a more subjective assessment of an investor’s mental attitude towards investing If there is a conflict between the two always go for the most conservative option Main Factors affecting ability to take risk: a Measure of Wealth: > Wealth, > Ability to take Risk Also subjective, partly depends on investor’s perception of their wealth relative to needs b Time Horizon/Stage of Life: The longer your time horizon (the younger you are) the greater your ability to take risk c Importance of Goals: Critical goals (like meeting essential spending needs) indicates a lower ability to take risk whereas things like luxury spending d Ability to withstand portfolio losses: The larger the shortfall an investor can tolerate before jeopardizing their goals the greater their ability to take risk Note that the relativity of goals can also equate to degrees of flexibility (bigger or smaller ranges for your asset allocation) 10 www.gostudy.io Main factor affecting willingness to take risk: a Source of Wealth: Entrepreneurial or active wealth creation (> willingness to take risk) versus passive inheritance (< willingness to take risk) Solving for Ability & Willingness to take risk On the exam you may be asked to say whether an investor has above average, average, or below average ability AND/OR willingness to take risk You will then be asked to justify your answer based on 2-3 pieces of information Let’s run through a list of the most common factors: Generally an investor has greater ability to take risk if he or she:            Is younger and has a longer time horizon to recover from losses Has more human capital (more potential to earn money in the future) Has a large asset base relative to liquidity needs Will receive an inheritance in the future Has stable income (bond like income versus equity-like income) Expects a pension in the future that will cover a high percentage of living expenses Has extra income above and beyond expenses to contribute towards building investment portfolio Has no dependents Is not planning to leave an estate Is planning on significant charitable contributions (these can always be canceled if necessary) Is debt free An investor has a lower willingness to take risk if he or she:       Has (or wants) a portfolio with mostly cash or short-term bonds Has had a bad past experience with investing, i.e suffered heavy investment losses Is explicit about wanting to avoid loss or maintain the real value of the portfolio Owns their own business (high risk concentration already) Will retire early Already knows they have enough assets to cover all of their needs The Five Constraints These five constraints are the ‘TTLLU’ part of the acronym RR-TTLLU By the end of this you will never forget those letters! Again they stand for Time, Tax, Liquidity, Legal/Regulatory, and a catch-all called Unique Time and Liquidity tend to be the most tested constraints but know all of these relationships cold Time Horizon More time means greater ability to take risk (n ↑, risk ↑) One’s investment time horizon is basically defined as one’s remaining years of life The longer one’s time horizon the greater one’s ability to take risk (all else equal) This should make intuitive sense—the more time you have to invest the more time you have to recover from losses 11 www.gostudy.io On the test you will need to ID the client’s time horizon (n) for calculating required return You may also be asked separately to answer whether the client’s time horizon is short-term, medium, or long term and discuss what that means for their ability to take risk Short term is usually defined as a time horizon < years, 15+ years is long term, and anything in between is categorized as an intermediate time horizon Be aware that clients will also usually have multi-stage time horizons Different stages are usually defined by life events A common example of a multi-stage time horizon would be where a client has two years until retirement (or until funding something large), 10 years until paying for a kid’s college, and then retirement which lasts until death It is also entirely possible that an additional stage could include multigenerational estate planning For a given investor be able to identify the number of stages, the length of each stage, and the main objective(s) of each stage and justify your rationale Taxes There is an entire reading devoted to calculating the return impact of taxes, how to create tax alpha, and also different strategies to maximize inheritance and wealth transfer through tax strategies While the CFAI reading repeats much of that material in this section we don’t waste your time re-hashing the basics For the IPS constraints you will need to list any special tax considerations of the client such as income and capital gains concerns, wealth transfer issues, or significant property taxes etc Taxes are probably the most universal IPS constraint and investor’s should think about financial planning from an after-tax perspective One flag for tax constraints that seems to come up frequently is a long-term holding that has appreciated in value (and thereby created significant deferred capital gains) Another thing to watch out for is whether an investor has multiple accounts that have different tax treatments, e.g a retirement account As we already mentioned, taxes are also key when calculating the required return of a client You need to know if the return you are calculating is before or after taxes You also need to keep taxes in mind when thinking about annual inflows Basically, make sure that if the client is receiving income that you calculate that income net of taxes when solving for (PMT), e.g 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒 = 𝑖𝑛𝑐𝑜𝑚𝑒 − (𝑡𝑎𝑥 𝑟𝑎𝑡𝑒 ∗ 𝑖𝑛𝑐𝑜𝑚𝑒) Liquidity Greater liquidity needs means less ability to take risk (Liquidity ↑, Risk ↓) Liquidity is defined as “the ability to meet anticipated and unanticipated cash needs.” Significant liquidity needs constrain an investor’s ability to take on risk and can lower overall returns due to cash drag 12 www.gostudy.io Liquidity is generally needed for ongoing expenses, to build an emergency reserve, or to cover major one-time events    Ongoing distribution needs (e.g a mortgage, living expenses) > Needs > Liquidity Emergency Reserves - > Desire for a reserve > Liquidity needs One-time events - Like paying for college tuition There may also be inflows that can reduce liquidity needs such as an expected inheritance  Whether there is income from outside the portfolio to support needs In an IPS morning question liquidity invariably refers to the amount of cash a client needs to have on hand over a given period of time, usually defined as one year.4 [ Read this footnote] On the exam you may be asked for liquidity either BEFORE tax or AFTER tax Note that this is a calculation problem and you will need to include specific numbers in your answer To solve for liquidity needs: Look at the cash flow/income an investor has coming in vs their spending needs (you’re likely to have to reduce income by the applicable tax rate) Net the inflows and outflows Take into account any other one time inflows or outflows Factor in any statements about building or holding a cash reserve as well5 Present their liquidity needs on a cash basis Add any context about whether this is a significant burden given the overall size of the portfolio Outside of a direct calculation question as part of an IPS question, liquidity constraints can also be important for evaluating the suitability of a given investment (particularly alternative asset classes) or for eliminating inappropriate portfolios in Strategic Asset Allocation questions (e.g too much or too little cash means you eliminate a choice as an optimal portfolio) One final note: an individual investor’s most illiquid asset is often their home—and that home is often a significant portion of their net worth As such the IPS should address whether or not the home is treated as part of investible assets as well as any risks associated with a concentration of wealth in a single asset For the exam assume the home is exclude in investible assets unless stated otherwise Liquidity can also refer to how easy it is to get in and out of a particular security in a given period of time This is also relevant for the exam In this case, liquidity is a function of transaction costs and price volatility, where higher transaction costs increase liquidity needs (because it is more expensive to buy/sell) and price volatility also increases liquidity needs as there is greater uncertainty about the amount of cash you will receive when selling When calculating required return if a cash reserve is specified in advance you should make sure the PV in your return calculation reflects that this cash reserve is not part of investable assets 13 www.gostudy.io Legal/Regulatory Make sure you are aware and can flag any relevant legal issues that pertain to a client The purpose is not to be a legal expert The purpose is to be a trained financial advisor so that you know your client needs and can refer them to a lawyer if necessary Common legal/regulatory constraints that you might find on an exam question include tax related issues such as wealth transfer questions or establishing a trust or foundation as well as significant insider stock positions (such as stock ownership for a company you are on the board of) that may have restrictions Unique As you might guess this is a catch-all bucket to place any special constraints a client may have This can include:        Any special investing concerns or constraints such as social impact investing, or securities/sectors to not invest in (e.g no tobacco) Special Instructions given by the client Restriction on the sale of any given assets Forbidden asset classes Assets they hold outside of their investable portfolio (like if a significant portion of their net worth is tied in a huge home) Desired bequests Any desired objectives that may not be obtainable Strategic Asset Allocation (SAA) Strategic asset allocation is the process of defining a mix of portfolio asset classes that meet the client’s return and risk parameters while also staying consistent with their constraints It’s all about setting long term target percentages for each asset class There is an entire reading which goes into much more depth on the topic, but for now the key is to know that SAA is heuristic, meaning it is solved for via a process of elimination On the exam there is very high probability this will be tested by having you choose the most appropriate portfolio for an investor from several different options This could also occur in combination with solving for a corner portfolio In order to pick the right portfolio: Solve for required return Eliminate all portfolios whose E(r) is less than client requires Eliminate all portfolios whose risk (standard deviation) is too high Identify any remaining portfolio that violates a constraint Common violations are: a Liquidity: Solve for required liquidity, what % of cash is this? If the portfolio has too little cash then the portfolio is inappropriate If there is too much excess cash then the cash drag may make portfolio inappropriate as it less optimal than 14 www.gostudy.io another If too much of the portfolio is in illiquid assets (PE/Hedge Fund/Real Estate) that can be a signal as well b Inappropriate Weighting: Is there too much portfolio in one asset class or stock? Common rule of thumb is 60% stock and 40% bond and you go from there c Stated Preferences: Client does not want to hold a given asset class, but the portfolio has that asset class Again, see the later SAA section for more depth Monte Carlo Simulation (MCS) The curriculum also discusses MCS as an alternative method of determining an investor’s SAA Monte Carlo Simulation comes up in multiple sections of the L3 curriculum with respect to determining the minimum variance frontier, estate planning, and risk management MCS is the process of simulating a portfolio’s performance thousands of times to generate a probability distribution of outcomes given different assumptions about important variables Monte Carlo Simulation’s key advantage lies in the fact that it takes into account path dependencies and multi-period effects, each with its own unique distribution of probable outcomes For example, high returns in one period can greatly affect a portfolio’s requirements in the next period We will cover this in more detail later, but for now we highlight the mechanics of constructing a MCS Inputs:  Time: Time horizon to retirement, estimated length of retirement  Assets: Income, Savings, Assets, Tax Status  Macro: Interest rate, inflation MCS then creates a probability distribution for each variable to determine a probabilistic portfolio value On the exam you will more likely be asked to talk about the pro/cons of MCS versus other methods rather than the mechanics.6 PRO / CON of Monte Carlo Simulation Advantages Disadvantages  MCS can be improved by using capital  Considers path dependency market expectations not just historical  Can be used to model risk and return tradereturn data offs  Can also be refined by using it on an  Does a better job assessing the impact of asset-by-asset basis instead of on the taxes aggregate portfolio level Want to see MCS in action? Here’s a 10 minute video on it 15 www.gostudy.io Want more notes? Get them plus a study app + cram guides + equation sheets + mock exams and more www.gostudy.io Questions? Email vsowers@gostudy.io 16 ...www .gostudy. io Guided Notes for CFA Level – 2016 Copyright © 2016 by Go Study LLC.® All Rights Reserved Published in 2016 The CFA and Chartered Financial Analyst® are trademarks owned by CFA. .. the CFA Institute The following is the copyright disclosure for those materials: “Copyright, 2016, CFA Institute Reproduced and republished from 2016 Learning Outcome Statements, Level III CFA ... estate planning becomes critical Constructing the IPS IPS questions are GUARANTEED to be on the CFA Exam While you will not need to “create” an IPS from scratch it is helpful to know the basic