IPS question approach

CFA Level III Portfolio Management
#1

So apparently the IPS is a big thing in the level 3 material. How are you tackling these questions? I’ve seen multiple approaches mentioned here, from schweser, Marc LeF bootcamp, IFT etc.

Is there a clear winner? What do they have in common? Frequent pitfalls?

#2

Color me surprised.

#3

I lol’ed a this

#4

I’m trying to get a handle on this myself. The required return on individual investor IPS is tripping me up.

Is there any approach that is your favorite? How do you approach it?

#5

Hehe riiight. So color me surprised this part of the material seem to get very little attention heee!

#6
  1. Profile:

  • Source of wealth (think active vs passive wrt to willingness to take risk)

  • Measure of wealth (again, willingness)

  • Stage (and how that relates to ability to take risk)

  • Psychological profile (risk taking / thought vs emotion)

  1. Objectives:

  • Return

  • Risk

  1. Constraints (analyze these prior to objectives):

  • Time

  • Taxes

  • Liquidity

  • Legal and regulation

  • Unique

  1. SAA