Professional Documents
Culture Documents
October 2012
CONTENTS
INTRODUCTION ..................................................................................................................... 1 CIWM EXAMINATION SCHEME .................................................................................................... 1 FOUNDATION EXAMINATION ................................................................................................. 3 FINANCIAL ACCOUNTING AND FINANCIAL STATEMENT ANALYSIS ........................................................... 3 EQUITY VALUATION AND ANALYSIS .............................................................................................. 3 CORPORATE FINANCE ............................................................................................................... 3 ECONOMICS ........................................................................................................................... 3 FIXED INCOME VALUATION AND ANALYSIS ..................................................................................... 4 DERIVATIVE VALUATION AND ANALYSIS ........................................................................................ 4 PORTFOLIO MANAGEMENT ......................................................................................................... 4 FINAL EXAMINATION............................................................................................................. 5 WEALTH MANAGEMENT ............................................................................................................ 5 RELATIONSHIP MANAGEMENT ..................................................................................................... 5 BEHAVIOURAL FINANCE ............................................................................................................ 6 REAL ESTATE VALUATION AND ANALYSIS....................................................................................... 6
NATIONAL EXAMINATION...................................................................................................... 7
INTRODUCTION
This syllabus lists the topics covered in the international examinations of the professional designation Certified International Wealth Manager CIWM. For simple cross-referencing, it corresponds with the table of contents of the training manuals for this programme. CIWM Examination Scheme The CIWM examination scheme comprises international examinations as well as a national/regional examination. The international examinations are divided into two levels the Foundation and Final level. Both levels test a global common knowledge base and are completed by all CIWM candidates worldwide. The national/regional specific examination is set by individual AIWM training providers. It examines knowledge that affects investment decision-making and that is required for domestic and international wealth planning and management. The examinations combine multiple choice and open questions that aim to test the understanding of key concepts and their application to investment decision making. The examinations are held in March and September annually.
INTERNATIONAL EXAMINATIONS Foundation Examination Topic Areas Financial Analysis and Financial Statement Analysis, Equity Valuation and Analysis, Corporate Finance Fixed Income Valuation and Analysis, Economics Derivative Valuation and Analysis, Portfolio Management Total time Final Examination Topic Areas Wealth Management Relationship Management, Behavioural Finance, Real Estate Valuation and Analysis Total time Examination Duration (Minutes) 180 180 360 (i.e. 6 hours) Examination Duration (Minutes) 190 160 190 540 (i.e. 9 hours)
NATIONAL / REGIONAL EXAMINATION Topic area Regulatory Practices, Taxation, Wealth Products, International Wealth Planning, Ethics, Domestic Wealth Planning, Estate Planning Total time Examination Duration (Minutes) 240 240 (i.e. 4 hours)
FOUNDATION EXAMINATION
Corporate Finance
1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 2.3 3 3.1 4 4.1 4.2 Fundamentals of corporate finance Goals of corporate finance Finance function and firms objectives Role of the financial manager Principles of valuation Discounted cash flow Capital budgeting Long term finance decision Investment decision Project evaluation Liquidation and reorganisation Short-term finance decision Short-term financing Capital structure and dividend policy Leverage and the value of the firm Dividend policy
5 5..1 5.2 5.3 5.4 6 6.1 6.2 6.3 7 7.1 7.2 7.3 8 8.1 8.2
Economics
1 1.1 1.2 1.3 1.4 1.5 1.6 Macroeconomics: the basics Major macroeconomics concepts and variables The basic model of output and interest rates in a closed economy The basic model of a financial market in a closed economy The IS-LM model The labour market General equilibrium in the real, financial and labour markets Macroeconomic dynamics Inflation vs. unemployment: The great trade-off
2 2.1
Open economy macroeconomics: the balance of payments and the exchange rate The balance of payments The exchange rate Exchange rate, prices and interest rates Statistical behaviour of the exchange rate
Basic characteristics of forward and futures contracts Mechanics of trading in futures markets Examples of various futures contracts Futures valuation and analysis Introduction to hedging strategies using futures Options Basic characteristics of options contracts Options valuation Option pricing models Binomial pricing model Sensitivity analysis of options premiums
1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 2.6
Fundamentals Main characteristics Types of fixed income securities Money market instruments Government Bonds Corporate securities Indices Time value of money Time value of money Bond yield measures Term structure of interest rates Bond price analysis Risk measurement Usage
Portfolio Management
1 Modern portfolio theory 1.1 The risk/return framework 1.2 Efficient markets 1.3 Portfolio Theory 1.4 Capital asset pricing model (CAPM) 2 2.1 2.2
3
3 Bonds with warrants 3.1 Investment characteristics 3.2 Value of a warrant 4 4.1 4.2 4.3 5 5.1 6 6.1 6.2 Convertible bonds Investment characteristics Value of conversion benefits Investment strategies
Callable bonds
Investment Policy Individual investors Institutional investors Asset allocation Asset allocation overview Type of asset allocation Asset/liability-analysis and management Introduction Modelling liabilities Modelling assets Surplus and funding ratios Integrated optimization Implementation of strategies
3.1 3.2 4
Investment characteristics Fixed Income portfolio management strategies Active management Passive management
5 Practical portfolio management 5.1 Derivatives in portfolio management 5.2 International investments 6 6.1 6.2 Performance measurement and evaluation Risk-return measurement Risk-adjusted performance measures
FINAL EXAMINATION
Wealth Management
1 1. 2. 3. 4. 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5
Basic concepts
Relationship Management
1 1.1 1.2 1.3 Interpersonal relationship and wealth management The interpersonal relationship The wealth manager and his client: the relationship interpretation model Interdependence and expectations in the wealth manager-to-client relationship Effectiveness and efficiency in relationship management
The idea of wealth through different cultures and the club of the wealthy
Comparing outcomes of investments Utility functions and indifference curves Expected utility approach Expected utility and the meanvariance framework
Asset and liabilities categories
1.4
2
Setting return objectives Time horizon Liquidity need Taxes Keep the profile alive
The idea of wealth The club of the wealthy Effective management of the client relationship Information as a strategic resource for the wealth manager Where to look for information The client as a primary source of information Communication and negotiation Intercultural communication The negotiation Efficient customer relations management in wealth management The lifecycle of a relationship Strategy for an efficient relationship management Customer relations management at the operating level The industrial aspects of wealth management Customer originated processes COP Organizational models in the business The competence of a wealth manager
4 The financial plan: Assessing the clients assets and liabilities 4.1 Pro forma financial statements 4.2 Base currency 4.3 Assets 4.4 Liabilities 4.5 Revenues and the evolution of revenues 4.6 Consumption and growth in consumption 4.7 Cash surplus 4.8 Taxation 4.9 Financial analysis 5 5.1 5.2 5.3
5.4
3.2 3.3 3.4 3.5 3.6 4 4.1 4.2 4.3 5 5.1 5.2 5.3
Asset allocation, portfolio choice and management styles Client constraints Construction of the efficient frontiers Determination of the optimal portfolio and the corresponding asset allocation with the client Periodical review of the assumptions, co-operation with the research and economic forecast departments
Funds selection
Advantages and disadvantages of mutual funds The fund selection process Tax considerations
Behavioural Finance
1
1.1
The decision-making process: limits of normative theory Decision problems, characteristics and the meaning of rationality in finance The expected utility hypothesis and the independence axiom Structuring the wealth management process Needs analysis Personal asset and liability management Investors profile Optimal asset allocation Documentation, reporting and evaluating the investment advice Product design a case study with structured products The question to be analysed The clients profile and hypothesis Products to be analysed Prospect theory evaluation Portfolio considerations and scientific assessment of structured products
Inter-temporal asset allocation
NATIONAL EXAMINATION
1.
Basic concepts 1.1 Time Value of Money 1.2 Financial Planning 1.3 Wealth Management 1.4 Wealth Management sector in India Domestic Wealth Planning 2.1 Market trends in wealth planning Overview Todays families & their tax & legal needs
2.
6. Regulatory Practices 6.1 Regulatory bodies 6.2 Regulatory Overlap 6.3 Alternative Investment Fund Regulation 6.4 Guidelines for PMS & Structured Products 6.5 AML, KYC
7. Exchange of information and growing transparency between various Governments
3.
3.1 Legal needs of todays families 3.2 Tax needs of todays families 3.3 Overview of global developments decline of bank secrecy, information exchange, undeclared funds, tax regularization & money laundering. 3.4 Structuring of Family Office & governance mechanism 3.5 Valuation of family business 4. Principles of taxation of Individuals & their investments comparative review 4.1 Basic Concepts 4.2 Direct Tax Income Tax, Wealth Tax, Heads of Income 4.3 Indirect Taxes VAT/ GST & Custom duties, STT, DDT, Service Tax 4.4 HUFs and their special needs Estate Planning Basic Concepts Intestate Succession Hindu Succession Act The Muslim Personal Law (Shariat) Application Act 1937 Will, Probate & Nominations Trust POA Charity Land Records
7.1 International judicial assistance in tax matters 7.2 Global transparency and the move away from undeclared money 8. 8.1 8.2 8.3 8.4 8.4 Wealth Products Equity Direct Equity, MF, PMS Fixed Income- Bonds, CP, CD, MF Structured Products Insurance Life & General Retirement Savings Products- PPF, Small Savings Schemes 8.5 Alternative Investments Real Estate, REITS, Gold, Commodities, Art Fund, Wine Fund, Hedge Funds, Currency 8.6 International Products Real Estate, Equity, Super Funds 9. The taxation planning needs of the families and how to address them
10. The non-tax needs of the families & how to address them 10.1 Charity planning, mitigating risks (for e.g. Divorce), second family, living wills, asset gathering & identification, privacy, succession and probate, asset protection & preservation, special assets, business succession, political risk, kidnapping & security, forced heirship, confidentiality, community property, mobility, etc.
11. International Wealth Planning 11.1 Market trends in international wealth planning. 11.2 Cross-border tax planning 11.3 Structuring, establishment & oversight of off-shore trusts 11.4 Wealth Management & Tax planning strategies for NRIs & Expatriates 11.5 Double-taxation avoidance treaties 11.6 Tax friendly nations 11.7 International Asset Allocation 11.8 Structure & Strategies for foreign investors 11.9 Mobility planning 11.10 Expatriation tax and legal issues, and planning considerations 11.11 Pre-immigration tax and legal issues, and planning considerations 11.12 Changing nationalities as a tax-saving measure
Contact address
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Regional Office AIWMI Regus, 15th Floor Eros Corporate Tower Nehru Place, New Delhi- 110 019 Email: info@aiwmindia.com, Website: www.aiwmindia.com
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