Chapter 8: Professional Skills and Best Practices

In this section

• Integrating Alternative Investments into Portfolios
  Integrating Alternative Investments into Portfolios (CFA Level 1): Role of Non-Correlation and Diversification and Balancing Liquidity, Transparency, and Return Potential. Key definitions, formulas, and exam tips.
• Risk Management Tools and Techniques
  Risk Management Tools and Techniques (CFA Level 1): Categories of Risk in Alternative Investments, Risk Measurement and Monitoring Frameworks, and Risk Budgeting and Position Sizing. Key definitions, formulas, and exam tips.
• ESG Factors, Governance, and Compliance
  ESG Factors, Governance, and Compliance (CFA Level 1): Why ESG Matters in Alternative Investments, Role of Environmental Factors, and Role of Social Factors. Key definitions, formulas, and exam tips.
• Emerging Trends, Innovation, and the Future of Alternatives
  Emerging Trends, Innovation, and the Future of Alternatives (CFA Level 1): Shifting Landscape of Alternative Strategies and Technology in Deal Sourcing, Execution, and Oversight. Key definitions, formulas, and exam tips.
• Asset Allocation Frameworks for Multi-Asset Portfolios
  Asset Allocation Frameworks for Multi-Asset Portfolios (CFA Level 1): Strategic vs Tactical Asset Allocation, Strategic Allocation, and Tactical Allocation. Key definitions, formulas, and exam tips.
• Liquidity Management and Redemption Terms
  Liquidity Management and Redemption Terms (CFA Level 1): Understanding Liquidity Profiles in Alternative Investments, Aligning Liquidity Terms with Investor Objectives, and Mechanisms for Liquidity Stress. Key definitions, formulas, and exam tips.
• Behavioral Finance and Client Communications
  Behavioral Finance and Client Communications (CFA Level 1): Core Behavioral Biases, Overconfidence, and Loss Aversion. Key definitions, formulas, and exam tips.
• Managing Operational and Reputational Risks
  Managing Operational and Reputational Risks (CFA Level 1): Identifying Key Operational Risks, Developing Comprehensive Operational Policies and Procedures, and Best Practices for Internal Governance. Key definitions, formulas, and exam tips.
• Cross-Cultural Negotiations and Relationship Management
  Cross-Cultural Negotiations and Relationship Management (CFA Level 1): Impact of Cultural Norms on Negotiation Styles, Preparation and Research, and Communication Styles and Active Listening. Key definitions, formulas, and exam tips.
• Big Data and Alternative Data in Investment Decisions
  Big Data and Alternative Data in Investment Decisions (CFA Level 1): Understanding Big Data, Understanding Alternative Data, and Data Analytics Techniques. Key definitions, formulas, and exam tips.
• Allocator Perspectives and Consultant Selection
  Allocator Perspectives and Consultant Selection (CFA Level 1): Understanding Institutional Allocators, Liability-Driven Investing (LDI), and Regulatory Mandates and Transparency. Key definitions, formulas, and exam tips.
• Drafting and Presenting Investment Proposals
  Drafting and Presenting Investment Proposals (CFA Level 1): Structuring the Proposal, Objectives and Investment Thesis, and Data-Driven Strategy Outline. Key definitions, formulas, and exam tips.
• Integrated Reporting and Shareholder Engagement
  Integrated Reporting and Shareholder Engagement (CFA Level 1): Why Integrated Reporting Matters for Alternative Investments and Linking Financial and Non-Financial Data. Key definitions, formulas, and exam tips.
• Evaluating Service Providers and Fund Administrators
  Evaluating Service Providers and Fund Administrators (CFA Level 1): Crucial Services for Managing Alternative Investments, Due Diligence on Prospective Providers, and Regulatory Track Record. Key definitions, formulas, and exam tips.
• Fiduciary Standards and Responsibility
  Fiduciary Standards and Responsibility (CFA Level 1): Key Fiduciary Duties, Regulatory Frameworks, and ERISA in Brief. Key definitions, formulas, and exam tips.
• Cybersecurity and Data Protection in Asset Management
  Cybersecurity and Data Protection in Asset Management (CFA Level 1): Rise of Cyber Threats in Asset Management and Building a Comprehensive Cybersecurity Framework. Key definitions, formulas, and exam tips.