Chapter 7: Professional Practices in Portfolio Management

In this section

• The Portfolio Manager’s Role and Fiduciary Duties
  The Portfolio Manager’s Role and Fiduciary Duties (CFA Level 1): Understanding the Fiduciary Duty, Core Elements of Fiduciary Duty, and Key Principles and Legal Framework. Key definitions, formulas, and exam tips.
• Regulatory Environment and Compliance Considerations
  Regulatory Environment and Compliance Considerations (CFA Level 1): Regulatory Bodies and Supervisory Oversight and Building Internal Compliance Programs. Key definitions, formulas, and exam tips.
• ESG Integration and Sustainable Investing Trends
  ESG Integration and Sustainable Investing Trends (CFA Level 1): Understanding the Building Blocks of ESG, Environmental Factors, and Social Factors. Key definitions, formulas, and exam tips.
• FinTech and Data Analytics Applied to Portfolio Management
  FinTech and Data Analytics Applied to Portfolio Management (CFA Level 1): Emergence of FinTech in Portfolio Management, Big Data and Advanced Analytics, and Identifying Market Patterns. Key definitions, formulas, and exam tips.
• Client Communication, Reporting, and Performance Attribution
  Client Communication, Reporting, and Performance Attribution (CFA Level 1): Value of Clear Client Communication and Essentials of Timely Reporting. Key definitions, formulas, and exam tips.
• Global Investment Performance Standards (GIPS) Implications
  Global Investment Performance Standards (GIPS) Implications (CFA Level 1): Why GIPS Matters, Underlying Purpose, and Heart of Performance Measurement. Key definitions, formulas, and exam tips.
• Conflicts of Interest in Practice
  Conflicts of Interest in Practice (CFA Level 1): Identifying Common Conflicts of Interest, Crafting a Robust Conflict-of-Interest Policy, and Managing and Disclosing Conflicts. Key definitions, formulas, and exam tips.
• Understanding and Applying Soft Dollar Arrangements
  Understanding and Applying Soft Dollar Arrangements (CFA Level 1): Why Soft Dollars Matter, Fiduciary Angle, and Key Principles of Soft Dollar Arrangements. Key definitions, formulas, and exam tips.
• Personal Trading Policies and Restrictions
  Personal Trading Policies and Restrictions (CFA Level 1): Objectives and Importance of Personal Trading Policies, Core Provisions in Personal Trading Policies, and Pre-Clearance Requirement. Key definitions, formulas, and exam tips.
• Insider Trading Guidelines and Surveillance
  Insider Trading Guidelines and Surveillance (CFA Level 1): Understanding Insider Trading, Why Portfolio Managers Must Care, and Defining Material Non-Public Information (MNPI). Key definitions, formulas, and exam tips.
• Investor Suitability and Appropriateness Assessments
  Investor Suitability and Appropriateness Assessments (CFA Level 1): Why Suitability Matters, Suitability vs. Appropriateness, and Key Elements of the Suitability Assessment. Key definitions, formulas, and exam tips.
• Professional Conduct and Industry Self-Regulation
  Professional Conduct and Industry Self-Regulation (CFA Level 1): Culture of Professional Conduct, Tone from the Top, and Why Industry Self-Regulation Matters. Key definitions, formulas, and exam tips.
• Preparing and Presenting GIPS-Compliant Performance
  Preparing and Presenting GIPS-Compliant Performance (CFA Level 1): Understanding Why GIPS Matters, Key Principles of GIPS Compliance, and Process Flow of GIPS Compliance. Key definitions, formulas, and exam tips.
• Evolving Role of Robo-Advisory Platforms
  Evolving Role of Robo-Advisory Platforms (CFA Level 1): Key Features of Robo-Advisors, Automation in Portfolio Construction, and Automatic Rebalancing and Tax Optimization. Key definitions, formulas, and exam tips.
• Portfolio Analytics Vendor Management
  Portfolio Analytics Vendor Management (CFA Level 1): Conducting Vendor Due Diligence, Service-Level Agreements (SLAs) and Performance Metrics, and Integrating Vendor Systems into Your Portfolio Infrastructure. Clear examples and common exam pitfalls.
• Ethical Considerations in Cross-Border Transactions
  Ethical Considerations in Cross-Border Transactions (CFA Level 1): Importance of Ethical Compliance, Navigating Cultural and Legal Norms, and Anti-Corruption Legislation: FCPA, UK Bribery Act, and Others. Key definitions, formulas, and exam tips.